Orders are plentiful, but textile businesses are worried about not being able to produce because of the pandemic

VCN - Currently, Vietnamese textile and garment enterprises, including enterprises of Vietnam National Textile and Garment Group (Vinatex), have orders until the end of April 2021. Commodities such as knitwear and popular goods with large sales volumes have orders until July and August 2021.
2548-2722-7-4412-dyt-may
illustration image. Photo: Nguyễn Thanh

Orders until the end of April 2021

In 2020, Vietnamese textile and garment enterprises experienced a year of decline for the first time in their 25-year history.

However, talking to the press, Mr. Le Tien Truong, Chairman of Vinatex's Board of Directors, said that by 2021, in the new normal, commercial transactions will return, however, the volume and price have not returned to the threshold of 2019.

Specifically, for textiles, to return to the consumption threshold of 2019, according to the brightest forecast, will be in the third quarter of 2022 or the end of 2023, according to the slow recovery scenario.

"Meanwhile, Vietnamese textile and garment enterprises set a target of 2021’s export turnover to return to the 2019 threshold. Thus, Vietnamese textile and garment enterprises strive to finish earlier than the market recovery from 3-6 quarters. This is a great challenge for Vietnamese textile and garment enterprises," Mr. Le Tien Truong said.

However, the Chairman of Vinatex also acknowledged that the signals from the market in the first quarter of 2021 showed that the forecasts and directions mentioned above of Vietnamese textile and garment enterprises have a basis for implementation. Currently, some Vietnamese textile and garment enterprises, including the Group's enterprises, have orders until the end of April 2021.

Notably, items such as knitwear and popular goods with large consumption have orders until July and August 2021. That is a good signal for the recovery of Vietnamese textile and garment enterprises, especially when Vietnamese textile and garment enterprises are in a good position in the redeployed global supply chain after the Covid-19 pandemic in 2020.

Great challenge and risk

The textile and garment export orders have been signed by the end of April 2021, some even signed by the end of August 2021. Meanwhile, Vietnam is currently facing the third outbreak of Covid-19.

Analyzing the challenges posed in this aspect, according to Mr. Le Tien Truong, in February 2021, when the Covid-19 pandemic hit the North, the outbreak in Hai Duong was of a large-scale so challenges and risks are also greater for Vietnamese textile and garment enterprises.

In 2020, when the pandemic spread around the world, causing the delay in supply chains, the Vietnamese textile and garment enterprises were in a supplier position, but if the disease occurs in their facilities, wages and benefits for employees will be lost.

Meanwhile, in 2021, the pandemic situation will be different, if the pandemic hits their facilities, they have to be isolated and will be unable to organize production, apart from the loss of wages and benefits for workers, enterprises cannot even complete contracts signed with customers.

This is a challenge and a very big risk for all textile enterprises. In addition to the loss of financial commitments to customers, in the long term, the position of Vietnamese textile and garment enterprises in the global supply chain is also unstable and may be replaced (especially in the current context, the supply chain realignment process has accelerated.)

"Therefore, we evaluate the disease control in Vietnamese garment and textile enterprises should be implemented at a higher level," Mr. Truong said.

Recommendations for business leaders in Vinatex to minimize risks are that the business and leaders need to raise disease prevention to the highest level, including strictly implementing the “5K” health campaign set by the Ministry of Health, keeping a safe distance, disinfection, and wearing masks during work and in the cafeteria.

In addition, for workers from Covid-19 affected areas, they have not come to the factory, ensure a full 21-day quarantine, then go to work again after negative results.

In addition, strictly focusing on production and business, ensuring productivity and quality, striving to reach the threshold of 2019 to recover in finance, orders and new position of Vietnamese garment and textile enterprises in the supply chain.

According to the Ministry of Industry and Trade, in January 2021, the textile production index and the apparel production index increased by 16.6% and 9.9%, respectively, compared to the same period in 2020. Compared to the same period last year, production of textiles from synthetic fibers and artificial fibers was estimated at 92.4 million m2, up by 20.4%; casual clothing was estimated at 380.1 million pieces, up by 9.3%. Export turnover of textiles and garments in January 2021 is estimated at US$2.6 billion, up by 3.3% compared to the same period in 2020.
By Thanh Nguyen/KieuOanh

Related News

Focus on sustainable development, greening the textile industry

Focus on sustainable development, greening the textile industry

VCN - Vietnam’s textile and garment industry has made great strides in strengthening its supply chain, diversifying its markets, and developing sustainably. Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, shared the industry’s strategy to adapt to the changing global context, as well as the export value target for 2024 that the industry is aiming for.
Unique opportunity for businesses in the supporting industry

Unique opportunity for businesses in the supporting industry

VCN - Vietnam's supporting industry is exposed to a unique opportunity to participate in the supply chain of emerging high-value industries such as the semiconductor industry, aerospace, etc. Customs Magazine had an interview with Ms. Le Nguyen Duy Oanh, Deputy Director of the Center for Supporting Industry Development, Ho Chi Minh City Department of Industry and Trade, about this issue.
Improve business environment to unlock potential for businesses

Improve business environment to unlock potential for businesses

VCN - According to Mr. Mac Quoc Anh, Vice Chairman and General Secretary of the Hanoi Association of Small and Medium Enterprises, despite current challenges, many resources are mobilized to optimize business results.
The key to opening new doors for agricultural enterprises

The key to opening new doors for agricultural enterprises

VCN - Sustainable development is the future of agricultural enterprises. Enterprises that have made early changes to this trend are receiving positive support from international investment funds, not only in terms of capital but also in terms of strategy, market, and supply chain.

Latest News

Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - Tensions between Israel and Iran escalate, tuna businesses are worried, they may have to stop export orders to the Israeli market in the last months of the year.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.

More News

Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countries, thereby maintaining advantages and developing on "away grounds".
Lao Cai Customs sees a triple-digit surge in export-import turnover

Lao Cai Customs sees a triple-digit surge in export-import turnover

VCN - Updated from the beginning of the year to October 24, total import and export turnover through Lao Cai Customs Department increased by 102%.
Coconut is expected to become a billion-dollar export item

Coconut is expected to become a billion-dollar export item

VCN - Talking to the press at the ceremony to launch the first train carrying fresh coconuts to China, Mr. Luu Van Phi, Director of the Department of Industry and Trade of Tien Giang province, said that Vietnam's agricultural export potential, especially fresh coconuts, is expanding with the appearance of international railway transportation from Song Than station.
Plastic exporters interested in converting to recycling technology

Plastic exporters interested in converting to recycling technology

VCN - The Vietnamese plastics industry is facing major challenges in terms of plastic waste and recycling needs. Secretary General of the Vietnam Plastics Association Huynh Thi My (pictured) shared important information about the transformation in production of plastics enterprises to meet increasing export demands.
Logistics sector must embrace innovative trends to stay competitive

Logistics sector must embrace innovative trends to stay competitive

The Vietnamese logistics industry must adapt to new trends and enhance infrastructure to remain globally competitive, speakers said at an event in Ho Chi Minh City on October 31.
Vietnam’s agro-forestry-aquatic product exports likely to set new record

Vietnam’s agro-forestry-aquatic product exports likely to set new record

Vietnam’s agro-forestry-aquatic product exports are likely to achieve a record high of 62 billion USD in 2024, said Deputy Minister of Agriculture and Rural Development Phung Duc Tien.
UKVFTA greatly benefits Vietnam-UK trade: Experts

UKVFTA greatly benefits Vietnam-UK trade: Experts

The UK-Vietnam Free Trade Agreement (UKVFTA), signed into law three years ago, has clearly benefited trade cooperation between the two countries, particularly in the context of Vietnam’s exports to most other major markets declining due to geopolitical tensions and headwinds in the global economy, said experts at a conference in Hanoi on October 30.
Agricultural exports likely to exceed 60 billion USD amid challenges

Agricultural exports likely to exceed 60 billion USD amid challenges

With swift production recovery and continued growth, Vietnam's agricultural sector could potentially surpass the 60 billion USD export target, according to the Ministry of Agriculture and Rural Development (MARD).
Vietnam-Philippines trade likely to exceed 8 billion USD for first time

Vietnam-Philippines trade likely to exceed 8 billion USD for first time

With the current rising trend, trade between Vietnam and the Philippines is likely to exceed 8 billion USD for the first time to hit about 8.5 billion USD in 2024, with Vietnam’s surplus of more than 3 billion USD, according to the Vietnamese Trade Office in the Philippines.
Read More

Your care

Latest Most read
Many factors affecting tuna exports in the last months of the year

Many factors affecting tuna exports in the last months of the year

VCN - In recent years, Israel has always been Vietnam's leading tuna export market after the US and the EU. Therefore, the recent escalation of Israel-Iran tensions is affecting Vietnam's tuna exports to this market.
Vietnam still dominates Philippine rice import

Vietnam still dominates Philippine rice import

Vietnam continues to assert its dominance as the top rice exporter to the Philippines, with 2.91 million tonnes shipped as of the late October, or over 79% of the Philippines' total rice imports, according to the Vietnam Trade Office in the Philippines.
Vietnam cements ties with partners to engage in global semiconductor, AI industries

Vietnam cements ties with partners to engage in global semiconductor, AI industries

By boosting cooperation with reputable partners across the globe, Vietnam is taking steps to gain a foothold in the world’s semiconductor and artificial intelligence (AI) industries.
Aquatic exports expected to rise in year-end despite challenges

Aquatic exports expected to rise in year-end despite challenges

Aquatic exports is expected to surge in the remaining months of this year, as the year-end festive season comes, despite many challenges in the international markets, according to insiders.
Trade Defense: The Key to Success for Vietnamese Businesses

Trade Defense: The Key to Success for Vietnamese Businesses

VCN - From losses and near bankruptcy, many domestic enterprises have recovered thanks to timely application of trade defense measures. Trade defense is also an effective shield for Vietnamese enterprises against a series of lawsuits from importing countr
Mobile Version