According to preliminary statistics of the General Department of Customs, in the first quarter of 2022, textiles and garments were the group of goods that contributed the most to 1.46 billion USD to the increase in exports of the whole country and had the highest increase over the same period last year. from 2012 to present.

Many worries...

Mr. Truong Van Cam, Vice President and General Secretary of Vitas, said that the vital point for textile and garment enterprises, besides having to have orders, needs to have a large workforce. Enterprises that want employees to stick together must take care of their lives, ensure jobs and welfare regimes.

At present, many textile and garment enterprises have orders until the third quarter of 2022, but it is not possible to predict the market after that because it depends a lot on the epidemic situation as well as input prices. Some large textile and garment enterprises of Vietnam such as Vietnam Textile and Garment Group, Garment 10, Thanh Cong Textile and Garment… said that orders will be closed until the end of the second quarter, even the third quarter of this year.

Although there is no shortage of orders, many textile and garment enterprises are still worried about "the more they do, the more they lose" due to the "dizzying" increase in the price of input materials and transportation costs.

However, as reflected by businesses, although this year's orders are high, businesses are facing a series of challenges such as: transportation fees, port infrastructure fees, raw materials increase... making it difficult for businesses to ensure the progress of signed orders.

In fact, in order to compete to attract workers, enterprises have to adjust their salaries by 5-10%. Meanwhile, the price of raw materials and accessories increased by 10-20%, logistics costs increased by 10-25%, even 100%, the cost of transporting export goods also increased by about 30%... All of this is happening. make businesses worry because "the more you do, the more you lose".

For example, Dony Garment Company (Thu Duc City), although there were orders until the end of the year with a total value of about 3 million USD. But the increase in the price of input materials is causing this business a headache to calculate how to keep the cost, ensure the salary for the workers, make the business profitable...

However, according to the leader of this business, if the price of input materials continues to increase, the price may have to be adjusted. In addition, the risk of inflation may also cause businesses to recalculate the problem of labor, salary ...

Efforts to "tighten austerity"

In order to minimize difficulties and avoid disruption of orders due to the rapidly increasing price of raw materials, many businesses are trying to "tighten their belts and tighten their belts", improve the value of creativity and take the initiative in raw materials because raw materials are present. domestic raw materials can only meet 3%-4%. Besides, training and improving the quality of human resources in the design and trade stages to offer Vietnamese brand design products, increase the competitiveness of Vietnamese branded garments in the domestic market. land.

In particular, businesses have to strictly manage the norms of raw materials to form products. For example, for Garment 10, the processing cost of the total cost of a shirt product accounts for 15-20%. If the productivity of the processed part is increased, it will reduce the pressure to increase costs in the context of not being able to increase the selling price of the product.

To overcome the shortage of raw materials and accessories due to dependence on imports, this enterprise has promoted cooperation and association with domestic suppliers, thereby helping Garment 10 make the most of the incentives. from FTAs. In addition, May 10 is also flexible in the management of import and export in the transportation stage (ship, road, air...). Therefore, May 10 always ensures timely delivery and creates a great reputation with customers.

“Garment 10 currently has over 60 customers who are garment importers in the markets: the US, Europe, Japan, Korea, Canada... Especially, the unit has built about 600 suppliers of raw materials. materials around the world to serve production and business”. General Director of Garment 10 Corporation Than Duc Viet shared.

According to Vice President Vitas, the textile and garment industry is developing very fast, but it is still weak in input materials, so I hope the Government will soon approve the "Strategy for development of Vietnam's textile, garment and footwear industry to 2030, with a vision to 2020. 2035” so that the industry can be self-sufficient in raw materials, meeting the rules of origin of the Free Trade Agreements.

In addition to the efforts of enterprises, the textile and garment industry hopes that the State will have specific support mechanisms and specific policies to encourage the development of supporting industries, including master planning, allocation of investment attraction. investment, export promotion funds, financial support, interest rates, exchange rates... to help businesses improve their competitiveness in the international market," suggested Mr. Cam.

Duc Anh

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