Strong test
In 2021, while many domestic textile and garment enterprises and FDI enterprises are struggling due to the epidemic, the Vietnam National Textile and Garment Group (Vinatex) will experience spectacular growth. The group's consolidated revenue and income reached VND 16,436 billion, equaling 110.7% of the same period last year; consolidated pre-tax profit was 202% over the same period, reaching 170% of the plan, nearly 70% higher than in 2019.
Yarn is likened to a "genius of genius" when it is the main product that helps the corporation achieve huge profits. Mr. Cao Huu Hieu - General Director of Vinatex - shared: The revenue of the yarn industry accounts for about 50% but accounts for more than 50% of the profit of the whole system. In previous years, the profit structure of 80% came from the garment industry, 20% from the yarn industry, by 2021 the structure will change significantly with 55% of yarn and 45% of sewing. “Apart from the objective factor due to market prices, the most important thing is the production management and administration, which helps the productivity of the yarn mill system to be significantly improved. In the same factory, in previous years, the productivity reached 900 tons of yarn/month, now up to 1,300 tons of yarn/month", said Mr. Cao Huu Hieu.
With May 10, Mr. Than Duc Viet - General Director of Garment Corporation 10- JSC - said: 2021 is a very difficult year in terms of production but favorable for the market. Order volume, especially export orders of May 10, is quite favorable, even more favorable than in 2019. Total revenue of May 10 in 2021 will increase by 17% compared to 2020.
However, not all businesses are as lucky as Vinatex and May 10. “Lack of labor, unable to organize production, incur penalties for progress or have to deliver goods by air at extremely high costs is the situation. common among many businesses in the South," said Mr. Tran Nhu Tung - Chairman of the Board of Directors of Thanh Cong Textile and Garment Investment Trading Joint Stock Company.
May Viet Tien was in a more miserable situation, within only 4 months of Ho Chi Minh City. In Ho Chi Minh City and localities in the southern region, the implementation of the distance has destroyed all of the business's 2021 plan targets. 100% of Viet Tien's factories located in 8 southern regions are affected, even some businesses go bankrupt.
Vietnam Textile and Garment Group and the dream of autonomy
Vietnamese textile and garment enterprises are embarking on building internal supply chains, self-managing production
It can be seen that the Covid-19 epidemic is a strong test for textile enterprises. In addition to the luck factor when not being in the hardest-hit areas of the epidemic, the initiative in epidemic prevention and control, flexibility in production and business, especially the policy of taking care of and retaining employees is weak. important factor to help businesses successfully overcome the pandemic.
“May 10 has a very good employee care policy with a medical station system equivalent to a district hospital, preschool, dormitory… Therefore, even at the most complicated time of the epidemic, businesses still have enough labor to maintain production,” said the leader of May 10.
Build a supply chain
According to the leader of May 10, in 2022, although there are still many worries, May 10 is still preparing policies to attract about 3,000 more workers for new projects in Thanh Hoa, Quang Binh and Thai Binh. These projects are also expected to bring growth to businesses in 2022.
Like May 10, many domestic textile and garment enterprises have had orders until the end of the first quarter and even the second quarter of 2022 and are actively producing to soon regain growth that has been reduced due to the epidemic.
At a higher goal, Vinatex has been becoming the focal point, leading many businesses to make efforts to realize the dream of autonomy, the goal by 2025 to become a point of purchase and focus on green production. , green products. Sharing about this goal, leaders of Vinatex - expressed: 2 years after the pandemic, we have witnessed the danger of supply chain disruption. When there is supply, the demand is cut off; when there is demand, the supply is broken. To avoid this situation in the future, Vinatex is trying to build an internal supply chain and become an important link of the global textile supply chain.
Accordingly, the group focuses on forming a large enough supply capacity for the knitting industry. Dong Xuan Knitting One Member Limited Liability Company and Dong Phuong Knitting One Member Company Limited have been invested to improve productivity, will be fully invested in the spinning system to complete the closed chain. The Group also plans to add 1-2 more knitting centers in the central region with a scale of 25-30ha/center, with a synchronous wastewater treatment system. The planning survey is underway, the center located in Nghe An has basically completed the positioning and is completing the procedures for deployment in 2022; The center located in Nha Trang is continuing to survey.
The epidemic has changed a lot of consumer behavior. Instead of luxury suits and shirts, consumers have turned to knitted products with simple designs and reasonable prices. In fact, most of the orders received by textile enterprises at the moment are knitwear.
The Group also continues to implement the digital transformation plan. The parent company, the controlling company and its branches will share the same digital management environment through the system. After completion, all input and output materials of the production stages are controlled. "With the advantage of high accuracy, no labor loss, we consider digital governance as the key to ensuring the success of the strategic goals of the period," said Mr. Cao Huu Hieu.
