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Signs of prosperity of Vietnam's textile and garment industry in the first 6 months of the year

  • 02/08/2021

Vietnam's textile and garment industry is enjoying a short-term advantage in terms of goods sources, helping many businesses to consolidate activities to increase productivity to ensure progress from now until the end of the year.

In the first 6 months of the year, the textile and garment industry had many signs of prosperity. Production index of the textile industry increased by 8.1% over the same period in 2020; the apparel manufacturing industry increased by 9.1%; Leather and related products industry increased by 12%.

At this time, although many textile and garment enterprises are constantly receiving new orders, in the context of the Covid-19 epidemic still complicated developments in many localities, the risk of labor shortage and delay in the delivery of goods. returns, the textile and garment industry is facing many challenges in the last months of the year. In order to promptly return orders to partners, many textile and garment enterprises are running at full capacity, while ensuring the safety of their employees.

Mr. Nguyen Xuan Duong, Chairman of Hung Yen Garment Company, said that businesses constantly receive orders from Europe and the US... But, to stabilize production and speed up delivery, workers need to be vaccinated. Covid-19. "If it is possible to quickly vaccinate workers, the textile and garment industry can create momentum for development and breakthrough," Duong said.
In the current context, recruiting enough workers and vaccinated workers will create good conditions for businesses to feel secure in production, timely delivery and return goods in the time to the end of the year. This not only helps improve the prestige of Vietnam's textiles and garments today, but also creates a source of profit, creating a premise for a breakthrough in the coming years.

Assessing the advantages and disadvantages of the industry, Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, said that the textile and garment industry has had a strong recovery over the past time. Most businesses have received orders, by the third quarter and the end of the year. "From now until the end of the year, basically textile enterprises will not have to worry about shortages and no orders. Along with that, Free Trade Agreements will further promote Vietnam's textile and garment exports to Europe. However, the problem of the Covid-19 epidemic will still have a great impact on businesses, "said Mr. Vu Duc Giang.

Currently, in order to pay orders to partners, many textile and garment enterprises are running at full capacity. Than Duc Viet, General Director of Garment 10 Corporation, said that the unit had to take care of production and business while strictly implementing measures to prevent and control the epidemic, with the goal of not letting the Covid-19 epidemic spread. appear at DN and leave no one behind. "This time May 10 is increasing capacity and restructuring groups and working shifts to increase labor productivity... in time to return goods to partners under contract, avoiding penalties for late delivery," he said. Viet said.

The textile and garment industry in the first 6 months of the year recorded positive recovery of aggregate demand in the world market. The increase in demand has resulted in an increase in the trading volume of textiles and garments, bringing a source of long and large orders to most businesses after a year of heavy shortages.

The recovery of textile and garment exports is not only a demand factor, but also a supply shift factor. The group of large textile and garment exporting countries such as India, Bangladesh, and Cambodia suffered from the epidemic on a large scale, and businesses could not operate. Meanwhile, in Vietnam until the end of April 2021, the disease control situation is quite good, enterprises can promote full speed for production.

Mr. Le Tien Truong, Chairman of the Board of Directors of Vietnam Textile and Garment Group (Vinatex) analyzed and estimated that the effectiveness of the first 6 months of the year could basically offset the entire loss of 2/2019, 2020. The result was achieved largely due to the early recovery of the market and the lack of supply from competing countries, leading to Vietnam having a short-term advantage in terms of supply, being almost the only safe destination. the best in the global supply chain,” said Truong.

In addition, Mr. Truong also pointed out that the business model of enterprises after 1 year of the epidemic has become more flexible and proactive, but still mostly encapsulated in the old model, old customers. , the approach has not undergone fundamental innovation.

Commenting on the textile and garment market in the coming time, Mr. Truong said that the US market is still the most important market of the garment industry, with a growth rate of nearly 30% in the first 6 months of the year, recording an increase of nearly 30%. the highest level after 14 years since Vietnam became a member of the World Trade Organization (WTO).

For China, in the past 6 months, this market has risen to be in the "top 3" of Vietnam's textile and garment importers, mainly in the yarn industry. "China's policy sensitivity and demand for Vietnam's yarn industry has become very high, which has a significant impact on the efficiency of the industry," said Truong.

According to the Ministry of Industry and Trade, garment items in the last 6 months of the year are autumn-winter products and will have a higher value. Therefore, it is forecasted that textile and garment exports in 2021 may increase by about 10% compared to 2020, equivalent to 39 billion USD and Vietnam's textile and garment may return to the export level of 2019, about 1 year earlier than the previous year. previously forecast.



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