Textile enterprises need to change production strategies

DNHN - To participate in the supply chain, textile enterprises must change their production strategies through process improvements, innovation in machinery and equipment, technology updates and greening of production stages to enhance quality.

Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (Vitas), informed that textile orders have begun to stabilize, with some enterprises having orders until the end of October and November 2024. This brings hope for stronger growth by the end of the year, with an export target of 44 billion USD this year.

The Vietnamese textile industry is thriving thanks to controlling inflation in major markets like the US and Europe, which helps increase purchasing power. Inventory levels of brands in 2023 have decreased, and some textile enterprises are now looking for smaller companies to outsource orders through Vitas. Additionally, textile enterprises have proactively diversified their markets and customers.

Mr. Cao Huu Hieu, General Director of Vietnam National Textile and Garment Group, stated that most garment enterprises have enough orders for production until the end of the third quarter of 2024 and continue negotiating contracts for the fourth quarter of 2024, the peak production season for Christmas and Tet orders. The export turnover of the Vietnamese textile industry in 2024 is expected to increase by 8-10% compared to 2023, with production and business results in the last six months of the year expected to improve due to positive market signals, particularly in the yarn sector.

Textile exports are returning to a recovery path, with enterprises having orders until the end of the third quarter and the end of 2024. However, manufacturing enterprises are facing many new challenges, such as changing customer requirements with smaller orders, lower quantities, low prices, and short delivery times. Consumers increasingly tend to shop online, and the demand for diverse products is growing.

Particularly, markets like the EU and the US demand green and sustainable production from raw materials, labor, equipment to energy, and transportation, which are all legalized and uniformly implemented. The Vietnamese textile industry is also under significant pressure regarding the workforce, currently lacking about 500,000 workers, especially skilled workers, mid-level labor, managers, and product designers.

To participate in the supply chain, Vitas advises textile enterprises to change their production strategies through process improvements, innovation in machinery and equipment, technology updates, automation application, and greening of production stages to enhance quality, production capacity, and flexibility in meeting small orders and diverse products. Besides reducing costs and production time, textile enterprises should also focus on selecting environmentally friendly materials that are recyclable, in line with the circular economy trend, and diversifying markets.

P.V