Many textile and garment enterprises have orders until the third quarter of 2022

With the most positive scenario, textile and garment exports in 2022 may reach US$43.5 billion. Photo: Nguyen Thanh

Garment 10 Corporation JSC is one of the textile and garment enterprises that started production from February 7, 2022 after the Lunar New Year holiday.

Than Duc Viet, General Director of Garment 10 Corporation, said that the rate of employees returning to work after Tet has reached more than 90%, even reaching 100% in several factories.

Notably, unlike every year when the textile and garment industry usually has few orders after Tet, this year's orders increased by about 15% compared to the same period last year.

“Up to now, Garment 10 Company has signed orders until the end of the second quarter of 2022. Some key products such as vests and shirts, after 15 months without any orders, now have orders until the end of the third quarter," said Viet.

Similarly, Pham Anh Tuan, Director of 76-Z76 One Member Limited Company (Ministry of National Defense), said that on the 5th day of Tet, the enterprise started production with 100% of employees. Up to now, they have received orders until the third quarter of 2022.

Do Van Ve, Deputy General Director of Huong Sen Group JSC also shared many positive signs in textile and garment exports in 2022.

“We started production on February 6 with 100% human resources. The company strictly adheres to pandemic prevention measures. Workers are very excited, producing for all three shifts. From the beginning of the year, the company has exported five containers to countries such as Korea and China,” said Ve.

According to Le Tien Truong, Chairman of the Board of Directors of Vietnam National Textile and Garment Group (Vinatex), in 2022, Vinatex sets an overall growth target of more than 8%, in which the value-added ratio and the rate of return on capital must be between 20-25%.

Previously, in 2021, Vinatex's consolidated profit reached a historic level of VND1,446 billion for the first time, 2.5 times higher than 2020 and 1.9 times higher than in 2019, which was the year before the Covid-19 pandemic.

For sustainable development in 2022, Vinatex will focus on promoting digital transformation solutions; and continue to form a large supply capacity for the knitwear industry.

Link yarn - textile - garment to increase added value, be flexible in the business model; consolidate production capacity, continuously update new and modern models, ensure in-depth investment, automation to reduce labor, and invest in green and clean production.

Emphasizing that Vinatex and other enterprises in the textile and garment industry are interested in stabilizing the macro-economy; interest rates and exchange rates must be suitable for export promotion, Truong proposed to soon guide the economic support package, including interest rate support so that businesses can recover quickly.

Besides, continue to cut logistics costs. Currently, logistics costs account for 9.3% of the cost of textile products. "Additionally, it is necessary to be flexible in the number of monthly overtime hours because the production of textiles and garments is seasonal and not evenly distributed," said Truong.

Regarding the export of the entire textile and garment industry, according to the Vietnam Textile and Apparel Association (Vitas), a positive signal this year is that major markets such as the US and the EU have reopened.

Vitas sets goals for 2022 according to three scenarios. For the most positive scenario, the pandemic situation is basically controlled in the first quarter of 2022, striving for export turnover to reach US$42.5 - 43.5 billion.

In the moderate scenario, the pandemic is under control in the middle of the year, the total export turnover is expected to be US$40-41 billion. In the worst-case scenario, where the pandemic continues to evolve till the end of 2022, the total export turnover will reach about US$38-39 billion.