The textile market recovered businesses accelerated

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Textiles and footwear in a greening spiralTextiles and footwear in a greening spiral
Multi-dimensional picture of textile and garment enterprisesMulti-dimensional picture of textile and garment enterprises
The textile market recovered, businesses accelerated
Fabric and yarn made from green hemp – one of the sustainable materials that Vietnam’s textile and garment industry is focusing on developing. Photo: N.H

Flourishing

Information about the market situation, Mr. Phan Van Viet, General Director of Viet Thang Jean Co., Ltd. said that the textile market is recovering and orders are gradually returning. The company has received orders lasting until the end of September 2024. However, current orders require quick delivery times of 45-60 days, with short preparation times and fifteen-day sample offers. Meeting these requirements, Viet Thang Jean has proactively changed some technological steps, applying digital technology in design such as 3D model design, helping to improve productivity and meet customer requirements. Mr. Viet added that the business has adapted to small orders, helping to increase the number of new orders and signings until the end of September.

Mr. Phan Van Viet forecasts that markets such as Europe, the US and Japan are recovering with reduced inventories, increased demand for new goods, and an increase in small orders from niche markets, helping better order recovery in the last months of the year.

According to Mr. Than Duc Viet, General Director of 10 Garment Corporation, in the first quarter of 2024, Garment 10 has better orders than the same period last year. Orders in the second quarter and the first half of the third quarter of 2024 also have more positive signals. Large markets such as the US, EU, Japan, along with newly exploited markets such as Canada, ASEAN and China all have quite good orders.

Gia Dinh Group Joint Stock Company has received an increase of more than 30% in orders, ensuring jobs for workers until September-October 2024. Achieving this number of orders, in addition to traditional customers from the US and EU, Gia Dinh Group has expanded customers in Japan, Korea and exploited niche markets such as South Africa and Mexico.

The Vietnam Textile and Apparel Association (VITAS) said that the textile and garment industry is showing signs of prosperity when traditional markets such as the US and Europe control inflation, leading to increased purchasing power and reduced inventory. Some textile and garment businesses have used VITAS to find smaller companies to hire to reprocess orders. If the world economic situation does not have major fluctuations, production activities of the textile and garment industry are expected to recover and develop well in 2024, with an export turnover target of US $ 44 billion.

Welcoming the wave of green transformation

Although the textile and garment industry has prospects for recovery, Mr. Phan Van Viet said that the industry still faces many challenges such as increased order prices while raw material and logistics costs remain high due to the Red Sea conflict. Export markets strictly control the supply chain from labor resources to environmental impact, with strict requirements on the origin of raw materials and green certificates for factories and products. Textile enterprises also have to face regulations such as EPR (extended producer responsibility) and CBAM (carbon border adjustment mechanism), along with the “sustainable fashion” strategy instead of “sustainable fashion”, and EU and German regulations on sustainable supply chains.

Receiving orders and meet the criteria of the import market, Mr. Phan Van Viet emphasized that businesses need to make efforts to innovate technology, apply new technology and meet the criteria of green sustainability, reducing carbon emissions. Mr. Than Duc Viet also said that greening in production has become a mandatory requirement. The adaptation of Vietnamese businesses will help export goods sustainably.

Ms. Nguyen Thi Hoang Thuy, Commercial Counselor in Sweden, said that the textile industry may be affected by the EU Green Deal. Vietnamese businesses need to proactively welcome the wave of green transformation, adjust production processes and invest in new technology to maintain competitiveness and move further in the global supply chain. Implementing seriously greening standards will help businesses convert to green production proactively, synchronously and comprehensively, opening up great opportunities for businesses to access the EU green product market early.

Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association emphasized that textile and garment businesses need to create Vietnamese brands in a higher position in the global value chain, focusing on building their product brands. instead of exporting under the names of other major brands. Digital transformation and smart manufacturing are mandatory requirements. Businesses need to gradually move from traditional production to automation to achieve this change.

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