The textile sector is regaining strength

DNHN - According to a report from the Vietnam National Textile and Garment Group (Vinatex), Vinatex's total consolidated revenue in the first quarter of 2022 reached more than 5,152 billion dongs, an increase of 144.2 per cent over the same time last year. In 2022, 5% of the plan will be implemented.

Pre-tax profit was VND 376.7 billion, or 173.9 per cent of the year's target, compared to the first quarter of 2021. Including the significant expansion of both the yarn and clothing industries. Over the same period, the yarn industry rose by 139 per cent, while the garment sector increased by 167 per cent.

According to Mr Cao Huu Hieu, General Director of Vinatex, the expansion of the yarn and garment business is due to a well-managed illness condition, with orders made since 2021. In the yarn sector, units are still making effective use of market possibilities; cotton prices are favourable since there is a stockpile until 2021. 

The labour situation in the garment sector is solid since the pandemic has been mostly contained, orders are full, and many units have signed orders until the third quarter of 2022.

Vinatex will drive digital transformation, and consolidate and construct the Information Technology and Digital Transformation Department to prepare for the following stages, according to the 2022 strategy.

It is expected that in phase 1 of digital transformation, from 2022-to 2023, there will be four solution packages, with a focus on upgrading the accounting and financial system, building an equipment management system, project and portfolio management, a human resource management system, laying the groundwork for Digital Learning technology, and constructing a customer management system...

According to Vinatex's report, the business has fulfilled 63 per cent of the year's strategy in the yarn sector. However, the price of cotton is now greater than the price of yarn, posing several challenges for the units.

To meet the objective in the second quarter, units used a variety of short-term remedies such as switching yarn indices, altering products, and developing new blended yarns to minimize input cotton materials. Long term, the firm will need to transform the yarn industry into a system of shared standards, reducing risks in all divisions.

Simultaneously, the supply chain is being improved by linking yarn units to knitting units under the group's shared strategy. With yarn manufacturing facilities that have a lot of obsolete equipment, it will spend heavily to replace it and increase the productivity and efficiency of each unit.

PV