Strong orders position textile industry to achieve export targets

According to the Vietnam Textile and Apparel Association (VITAS), producers have received export orders through year-end and are negotiating more for 2025.

VITAS confirmed that this year's export turnover will reach the $44 billion target, despite global economic challenges. The industry's total export turnover in the first nine months of 2024 exceeded $32.5 billion, up 9.2 per cent on-year. Given recent positive developments, the association is highly confident of achieving this target, as year-end traditionally brings peak orders for Christmas and Lunar New Year holidays.

Photo: baodautu.vn

According to baotintuc.vn, Truong Van Cam, vice chairman of VITAS, said, "The increase in orders is primarily due to shifts from other countries to Vietnam, not from increased market demand."

Natural disasters, political instability, and policy inadequacies in competing countries continue to create opportunities for Vietnamese textile companies to receive redirected orders. Seasonal factors, festivals, year-end events, and retail promotional policies are expected to drive a more vibrant shopping season.

Additionally, the textile industry, a key industrial sector, is benefiting from favourable export conditions. The US Federal Reserve's 0.5 per cent interest rate cut in early September, amid declining inflation in the US and EU, is expected to stimulate consumption in these two major markets for Vietnamese textile exports.

Bach Hong Long, deputy general director of May 10 Corporation said, "Our company is rushing to complete 2024 orders and has secured orders through February 2025. We are currently negotiating new orders extending into Q1 2025, with about 70 per cent of orders already confirmed."

Similarly, Dony Garment Company reported being fully booked through Q4 2024 and negotiating new orders through March 2025, with 70-80 per cent of Q1 2025 orders confirmed.

At Viet Thang Jean Company, Pham Van Viet, general director reported receiving redirected orders from other countries, particularly low-priced orders from Bangladesh.

Vu Duc Giang, chairman of VITAS, noted that while order recovery is positive, businesses face challenges meeting green certification requirements from European, American, Japanese, Korean, and Chinese markets. Vietnamese businesses haven't been able to increase prices for the past five years, partly due to green production requirements affecting manufacturing costs.

Giang suggested that achieving green targets requires fundamental investment in digital management and robotics. Companies need to focus on sustainable production, such as using renewable energy, water conservation, and reducing emissions to achieve higher production efficiency.

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