According to data from the Vietnam National Textile and Garment Group (Vinatex), under the negative impact of the epidemic, the efficiency of production and business of the Group’s affiliates has declined, requiring a change in strategy manufacture and export.
In the second quarter of 2020 alone, the net revenue of the Vietnam National Textile and Garment Group (Vinatex) decreased by 36% over the same period. Not only the supply of raw materials was interrupted, but the export market plummeted.
To overcome the difficulties, businesses had to proactively regulate production, and flexibly adjust orders to meet the new situation. Many businesses have taken advantage of resources, developed niche markets, received small, difficult orders with high technical requirements
The forecast, in the last months of the year, is really a challenge for the textile and garment industry.
Mr. Cao Huu Hieu, Deputy General Director of Vietnam Textile and Garment Group, said that right from the middle of the year, production and business activities of the units were almost back to normal, traditional orders started. However, when new cases appear in the community, garment and textile enterprises are affected and are forced to change production.
“The textile and garment industry has its own characteristics, unlike other industries, the orders signed with customers are due to be returned on time, however, the customers themselves are in the context of the world sympathy and sharing, in which there are orders with a slightly special nature, force majeure, the two sides will negotiate with each other, extend the delivery time.
With the disease situation warming up, we have also directed businesses to be ready to export masks. Enterprises are also very experienced in arranging and converting from ordinary clothes production to export production “- Mr. Hieu said.
Mr. Than Duc Viet, General Director of Garment Corporation 10 said: “We have to accept a game that today is like this, tomorrow is different, we must fulfill existing orders, with quality, best productivity and on time, to avoid the biggest financial risk of canceling goods, pay great attention to the story of production management, meet the criteria, be creative, flexible, change, adapting to the current new situation “.
Reduced global purchasing power, changing consumer culture, the last months of the year are the most difficult time, requiring textile enterprises to be active, find solutions to cope with the rapid development of the pandemic and the market.
- Textile and apparel firms lack orders for the last two quarters
- Vinatex predicts drop of up to 18% in apparel exports in second half
- Plummeting exports threaten textile job cuts
- Vinatex predicts 50 percent drop in profit before tax this year
- Vinatex’s revenue nosedives 36 percent in Q2
- Halving orders, textiles risk losing more jobs
- Garment and textile enterprises reel under blow from COVID-19 pandemic
- Vinatex predicts 50% drop in profit before tax this year
- Greater export opportunities beckon for textile and apparel industry in second half