The textile and garment industry tries to overcome difficulties

VCN - The decrease in orders is posing a great threat to the workload at textile and garment enterprises. Therefore, businesses are trying to keep their labor source stable.
Workers produce textiles at May10
Workers produce textiles at May10

Managing to retain workers

According to statistics from the Vietnam Textile and Apparel Association, the rate of absenteeism in the industry is 5-7%. This rate is not large compared to the leather, footwear, and wood industries.

Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, affirmed that the textile and garment industry identified labor as the number one asset, more valuable than technological equipment and factories. Therefore, in the context of declining orders, businesses are trying to retain workers.

“There are units that are producing garments that have to accept to make PP bags for supermarkets to have jobs for their workers. Although labor productivity is very low when making this product, businesses want to keep their workers after the economy recovers, especially when the Vietnamese textile and garment industry recovers," said Giang.

Notably, businesses, including in the export and domestic market, still maintain their stability and have stable labor. For example, at Viet Tien Garment Corporation, revenue from the domestic market this year is expected to reach more than VND1,000 billion, higher than VND850 billion in 2021. Or Yody brand also achieves growth of 18%, reaching nearly VND2,000 billion in the domestic market. Similarly, brands such as May 10, Nha Be, An Phuoc, and X28 are all stable.

Giang assessed that the domestic market was the solution for enterprises to maintain labor policies. Accordingly, many new brands enter the market. For example, 10 Garment Corporation has just launched a series of new brands and opened a series of product introduction stores.

E-commerce is also a solution that businesses have applied effectively in the current situation. In 2021, the proportion of online sales in many businesses was only 7-8%, this year it has increased to 18-20%, notably at Yody brand, this proportion has increased to 50%.

Besides, the textile and garment industry is making efforts to diversify export markets. Currently, countries in the Middle East are a factor promoting export ability.

Giang said that previously, Vietnam had produced knee-length shirts for export to Muslim countries, but the proportion had been low. Since 2021, this number has increased sharply thanks to orders from some countries such as Turkey, Bangladesh, Sri Lanka, and Myanmar. This is possible thanks to Vietnam's initiative in the source of raw materials.

Efforts to go green

Besides solutions to stabilize labor, the textile and garment industry is promoting plans for greening, sustainable development, and circular economy, digital governance toward long-term growth goals.

Accordingly, the Vietnam Textile and Apparel Association has cooperated with international organizations to build a program of industrial parks for sustainable development and selected Bao Minh Industrial Park (Nam Dinh) as a model industrial park, leading in sustainable development, meeting the requirements of domestic and international investors. Recently, a delegation of the National Assembly of the EU and the UK came to work with the Vietnam Textile and Apparel Association to learn about sustainable development policies for textile products exported to these markets.

Accordingly, sustainable development and digital governance are being evaluated as attractive forces of Vietnam's textile and garment industry for international customers.

Thanh Cong Textile and Garment Investment Trading JSC (TCM) is one of the enterprises that have made great efforts in greening and sustainable development. Besides developing product lines from recycled and sustainable materials, the company is aiming to use water efficiently and economically by reusing water through a water circulation system.

Regarding wastewater and emissions, TCM has invested in a water treatment system with high technology, ensuring the control of output wastewater meets environmental standards. Besides, TCM is planning to change boiler fuel from coal to biomass or use electric boilers to replace low-power boilers to reduce CO2 emissions into the environment for some factories.

In addition to the efforts of greening and sustainable development, enterprises are boldly switching from outsourcing to FOB (Free One Board - after the order has been completed, the garment factory will contact and bring the product to the dock), ODM (Original Design Manufacturing - production method of textile industry including design stage).

Accordingly, when processing a shirt, enterprises only earn US$1, but if they do FOB, they will earn up to US$5 and ODM will earn US$7. "Enterprises have realized that outsourcing jobs are greatly affected by the reduction of orders this year, so they have switched to be more proactive," said Giang.

However, to invest in sustainable development and convert from outsourcing to FOB and ODM, businesses need capital. Meanwhile, interest rates in Vietnam are at a high level. Therefore, the Vietnam Textile and Apparel Association recommended that the banking industry consider keeping interest rates stable for industries with large export turnover and high trade surplus and solve a large number of jobs for workers to ensure stability.

By Nguyen Hien/ Ha Thanh

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.
Green transformation - the challenge of businesses in sustainable development

Green transformation - the challenge of businesses in sustainable development

VCN - Businesses are simultaneously under pressure from global and domestic supply chains, as environmental, social and human standards are constantly updated towards green and sustainable. Regulations on product quality and safety are therefore required to be higher. In particular, green energy transformation is an important turning point to reduce greenhouse gas emissions.
Energy saving: The key to sustainable development for Vietnamese businesses

Energy saving: The key to sustainable development for Vietnamese businesses

VCN - Mr. Mach Dinh Khoa, Vice President of Business Strategy & Operations for Commercial Buildings at Schneider Electric, believes that energy saving is not only a trend but also a decisive factor for Vietnamese businesses to maintain their competitive edge. To achieve this goal, practical solutions, government support, and determination from the businesses themselves are crucial.
E-commerce tax collection in Hanoi increased by 265%

E-commerce tax collection in Hanoi increased by 265%

VCN - As of August 2024, the Hanoi Tax Department has built a tax management directory for e-commerce business activities including more than 75,000 organizations and individuals. In particular, there are more than 37,000 business households and more than 9,000 individuals.

Latest News

Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - Although the import and export turnover of goods slowed down in September 2024, in general, import and export activities, especially exports, still grew positively in the first 9 months of 2024. It is expected that import and export of goods in 2024 will reach a record of 800 billion USD.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

VCN - According to the Ministry of Agriculture and Rural Development, Vietnam's capacity to export over 50 billion USD worth of agricultural products annually, coupled with established supply chains, provides a significant advantage for Vietnamese agricultural and aquatic products to penetrate the Halal market.

More News

Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Vietnam and UAE trade sees billion-dollar growth

Vietnam and UAE trade sees billion-dollar growth

VCN - According to General Department of Vietnam Customs by the end of September 2024, bilateral trade between Vietnam and the United Arab Emirates (UAE) reached nearly US$5 billion, an increase of more than US$1.4 billion over the same period last year.
Sharing responsibility for ensuring security and safety of the supply chain

Sharing responsibility for ensuring security and safety of the supply chain

VCN – Post - clearance audit is carried out in a planned, focused and key manner, avoiding widespread and ineffective inspections, thereby creating convenience for the business community and improving the effectiveness of state management of customs.
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.
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".
Read More

Your care

Latest Most read
Import and export are expected to reach 800 billion USD

Import and export are expected to reach 800 billion USD

VCN - At the regular Government meeting in September 2024, Minister of Industry and Trade Nguyen Hong Dien assessed: import and export continued to be a bright spot, recording a positive recovery compared to the same period last year.
Fresh coconuts quenching new overseas markets

Fresh coconuts quenching new overseas markets

Vietnam’s fresh coconuts are being increasingly consumed in international markets such as the US, China, and the UK, highlighting a bright spot in Vietnam's fruit export sector with many opportunities for breakthroughs in the near future.
Rice exports likely to set new record in 2024

Rice exports likely to set new record in 2024

Vietnam sold 800,000 tonnes of rice overseas for 505 million USD in October, bringing the country's total export volume and value in the first ten months to nearly 7.8 million tonnes and 4.86 billion USD, up 10.2% and 23.4% year-on-year, respectively.
Vietnamese goods conquer halal market through trust and quality

Vietnamese goods conquer halal market through trust and quality

According to the Ministry of Agriculture and Rural Development, Vietnamese agricultural and aquatic products could penetrate the Halal market.
Exporters urged to have strategies to take advantage of UKVFTA for expansion

Exporters urged to have strategies to take advantage of UKVFTA for expansion

The UK is concerned by sustainable development, labour issues, environmental protection and social responsibility. Therefore, when exporting to the UK, enterprises should not just be concerned about being competitive in terms of price and quality.
Mobile Version