Proposing to support textile and garment enterprises to find export orders and increase benefits from FTA

DNHN - Mr. Bui Ta Hoang Vu, Director of the Ho Chi Minh City Department of Industry and Trade, stated that from May 25-28, a trade fair for Vietnamese exports will be held so that Vietnamese businesses can meet their international partners.

Mr. Cao Huu Hieu, General Director of Vietnam Textile and Garment Group, stated, "The current orders are significantly reduced, down 20-30% compared to the same period last year, but the processing price has decreased significantly." In-depth, many businesses only have orders through the end of March and April, whereas the norm is until the end of June or the entire year of 2023.

According to preliminary statistics from the Vietnam Textile and Apparel Association (Vitas), Vietnam's total export turnover of textiles and apparel in the first three months of 2023 is estimated to be USD 8,701 billion, a decrease of 18.63% compared to the same period in the previous year. Immediate implementation of several proposed export-supportive solutions for garment manufacturers began in the second quarter.

According to data from the General Department of Customs, Vietnam's export turnover of goods was estimated at over $79 billion in the first quarter of this year, down nearly 11% from the same period last year. According to businesses, the main export markets of Vietnam, which include the United States, the European Union (EU), and China, all have higher standards. the standard of imported goods. This is another reason why Vietnamese business orders have not increased as anticipated. This fact requires domestic businesses to adapt flexibly, raise product quality standards, and compete on price to secure repeat business.

Thus, higher international market standards, coupled with a decline in orders, represent a double challenge for Vietnamese exporters at present. However, the Ministry of Industry and Trade's Import-Export Department expects import-export activities to recover by the end of the second quarter and increase again in the second half of this year, during the peak export season. However, to achieve the export goals, solutions to eliminate obstacles must be expedited immediately.

"Developing potential markets in the Middle East and Latin America; negotiating an FTA with Mercosur." Ms. Nguyen Cam Trang, Deputy Director of the Import-Export Department at the Ministry of Industry and Trade, stated that this is the path to opening the Latin American market. Dear, said.

In addition to locating new markets, export textile enterprises concentrate on receiving numerous textile and garment orders with intricate specifications, consolidating numerous small orders, optimizing production costs, rebalancing the proportion of domestic service to export to maintain jobs for employees and prevent interruptions to the sewing line, which affects the revenue efficiency of the entire year.

"I hope that shortly, counselors from other nations will actively participate in all international trade shows, spend money, and reserve booths for Vietnamese goods. I believe that is very practical support. Mr. Trinh Duc Kien, Deputy Director of Ke Go Co., Ltd., remarked that the situation was "extremely urgent and time-sensitive."

"Reducing business, transportation, and logistics costs is necessary. These expenses represent a substantial portion of our export costs. A company may sell a product for 100 dongs, but transportation expenses may be incurred. 30-40% of it has been accounted for by logistics. According to the view of Mr. Do Thien Anh Tuan, lecturer at the Fulbright School of Public Policy and Governance in Vietnam, businesses are no longer competitive, and our goods are unable to compete and enter markets.

"The state must offer support packages such as interest rate support for export businesses to assist them in reducing input costs, as well as tax support to assist businesses in overcoming this challenging period." Mr. Trinh Viet Hoang Minh, an ACBS Securities Company macro analyst, proposed.

Vinatex General Director Cao Huu Hieu stated that, as a result of the market's long-term fluctuations and difficulties, the Group's management agency quickly devised solutions to deal with the situation, ensuring the successful implementation of the plan. Beginning the year with a production and business plan.

Particularly, bolstering solutions for yarn businesses to maintain production, stabilize labor sources, guarantee cash flow, and prepare resources to catch up when the market recovers.

Promoting the development of the Group's knitted product production chain, thereby assisting fabric and garment manufacturers in proactively supplying raw materials, reducing yarn inventories, and increasing the added value of final products. end of the supply chain; strengthen energy-saving and emission-reduction solutions to meet both the financial and environmental needs of consumers.

Regularly monitor the market, customers, and production plan to make prompt decisions when receiving orders and converting products to meet market demand; focusing on improving the production system, enhancing production management efficiency, actively implementing digital transformation, and giving product quality a top priority.

In addition, promoting training, enhancing skills, researching new products and new markets to catch up with the trend of advanced green production, and meeting the requirements of large customers and markets, are essential. large market,... Consequently enhancing the product value and supply chain position of Vietnam's textile and apparel industry.

Thanh Ha