SIGNING MULTIPLE CONTRACT TO Q2/2022, TEXTILE AND GARMENTS INCREASE PRODUCTION

The textile and garment industry boosts production and completes signed orders in 2022. Photo: Ngoc Han

Take orders until the second quarter of 2022

According to General Director of Garment 10 Than Duc Viet, Garment 10 has signed contracts with import partners from now until the first quarter of 2022, some orders are signed until the second quarter of 2022, enough for businesses to feel secure and stable. production, creating excitement for workers. Currently, May 10 is focusing on production to keep up with schedule. With available orders, May 10 can complete the set targets and tasks in the first quarter of 2022.

Currently, units of Garment Corporation 10- JSC are trying to increase production shifts to ensure the progress of signed orders for the first quarter of 2022 and a number of signed orders to the second quarter of 2022.

Mr. Tran Nhu Tung - Chairman of the Board of Directors of Thanh Cong Textile - Investment - Trading Joint Stock Company also said that the demand for importing textiles in the world is still optimistic, so the order "is not a problem". , it is important to ensure labor resources in the context of complicated developments of the COVID-19 epidemic.

As the "leading bird in the industry", in 2022, Vietnam Textile and Garment Group (Vitnatex) aims to "become a package destination for customers in the textile and fashion industry" and "put employees as the center of development". development", striving for an overall growth of more than 8%, focusing on the quality of growth through the ratio of added value and profit-to-sales ratio; 100% of employees have jobs, average income is 8.35 million VND/person/month… Vintatex also aims to continue to maintain and improve competitiveness in 2022, especially supply chain competition. package in the group.

Mr. Cao Huu Hieu - General Director of Vietnam National Textile and Garment Group (Vinatex) - shared that the group's garment units had enough orders until the end of the first quarter of 2022, many units had until the third quarter of 2022 and Currently, the units are working hard to deliver on schedule.

Vinatex is continuing to build a suitable investment roadmap, determine the market structure, main customers for each product type, strengthen design, marketing, merchandise capacity and strengthen the development of new markets. At the same time, focus on investing in the development of raw material production, especially developing specific products. Prioritize investment in digital infrastructure for units, quickly implement a centralized digital management system for yarn groups, garment groups as well as between parent company (Vinatex) and controlling units.

Lots of challenges in 2022

According to Mr. Cao Huu Hieu, the order structure of 2022 has changed, more knitted products. Therefore, textile enterprises need to change the structure of production products to meet the needs of the market. However, although the textile and garment market is expected to prosper this year, the total demand is not expected to increase much. In the "tight" of aggregate demand, countries that compete with Vietnam's textile and garment are all trying to increase their export market share. In particular, China has approved the 14th 5-year plan dedicated to the textile industry and ambition to expand market share in the segments with the highest added value, creating great pressure on the textile and garment industry. Vietnam in 2022.

According to the Vietnam Textile and Apparel Association (Vitas), up to this point, transportation costs have increased, the shortage of containers is still a big bottleneck that needs to be removed. It is forecasted that it will not be until the second half of 2022 when the number of newly built containers supplied to the market will begin to solve the transport problem. Logistics will continue to be difficulties affecting exports in general and the textile industry in particular in 2022.

Besides, there is the issue of labor force, raw material supply... According to experts' predictions, cotton yarn price and production output will increase in the first 6 months of 2022, but the gross profit margin of the companies. cotton yarn companies are likely to adjust in the second half of the year. Therefore, it is estimated that most garment manufacturing companies will have lower gross profit margin compared to 2021 due to high input fabric costs in the first 6 months of 2022.

It is known that in 2022, Vitas offers 3 scenarios for Vietnam's textile and garment exports, in which, the highest scenario is 42.5-43.5 billion USD, the average is 40-41 billion USD, the lowest is 38-39 billion USD.