The production manager at a textile enterprise in HCMC’s Thu Duc City said last year his company had to pick and choose orders to sign contracts, but now has orders only for this month.
Cao Huu Hieu (general director, Vietnam National Textile and Garment Group) said that the Vietnam National Textile and Garment Group’s situation has not improved in recent months. Many orders saw their values drop by between 2 and 3 percent.
According to him, orders for Group Companies are available only until April. Last year, they were available until December.
Pham Xuan Hong is the chairman of Ho Chi Minh City Textile and Garment – Embroidery Association. He said that the major markets, such as Europe and the U.S., have shown no signs of recovery.
Hieu predicted that the world market would plummet to US$750 billion or $712 billion (or even $687 million) this year. It will be a difficult period in the industry’s history.
VnDirect, a securities company, expects China’s opening to be a threat to textile businesses this year. China currently is Vietnam’s largest competitor on the US market.
Data from the U.S. Office of Textiles and Apparel shows that China’s textile and garment exports exceeded $132 billion last year. This is 26% of all total imports. It was also the country with the highest number of suppliers. Vietnam was next with 14.9%.
Tuan claimed that the company will accept orders even below cost to maintain its customer base and employees.
“We believe the market will begin to recover by the end of the year, in order to offset the losses from the previous half.”
In Vinatex’s case, the group is planning to ensure there are cash flows and feedstock for when the market eventually picks up.
This is about reducing redundancies and seeking out modern technologies that allow for intelligent production at low cost with high productivity.
Vu Duc Giang is the Chairman of Vietnam Textile and Apparel Association. He believes that investment in the raw material supply chain and FOB sales solutions are essential for sustainable growth of the garment and textile industry.
He said that Vietnam will benefit from Wednesday’s largest textile and clothing exhibition in Ho Chi Minh City.
There were hundreds of stands that displayed smart devices from over 1,300 companies in 21 countries.
Global buyers demand more than just high-quality products. To meet these needs, manufacturers need to have sophisticated equipment.
Analysts predict that the textile market will recover in the second quarter. However, Vietnam faces stiff competition from India, Bangladesh and China.
The yarn market remains bleak.
According to the General Statistics Office, Garment exports in January and March fell 17.4% compared to a year ago to $7.2 billion.