Manufacture of garments for export at X20 One Member Limited Liability Company, Tay Bac Ga Industrial Park, Thanh Hoa City. Photo: Minh Hang

It is known that from the beginning of February 2022 until now, when China continues to implement the "Zero COVID" policy, the situation of trade and customs clearance of goods at Vietnam - China border gates and Chinese seaports. capacity is reduced. In the context that the source of raw materials and accessories for domestic garments is still dependent on the Chinese market for more than 90%, which has significantly affected the input of domestic enterprises.

According to Thanh Hoa Textile and Garment Association, from the beginning of the year until now, the number of garment and footwear orders to enterprises in the province has been quite regular. In some large enterprises, a growth rate of 30-40% can be achieved. In the first months of the year, enterprises have had a reserve of raw materials from the end of 2021. However, from February to now, the supply of raw materials has been slow in many times compared to the plan, greatly affecting the plan. production plan of enterprises. Up to this point, the number of garment and footwear enterprises with sufficient supply of raw materials and accessories to ensure production activities until the end of the second and third quarters is not much. In that context, many enterprises have been proactive and flexible in many different ways to maintain production orders. For example, at Hue Anh Garment Co., Ltd (Bim Son town), the basic unit has enough raw materials for production until the end of September this year. Enterprise representatives said: For many years now, besides China, enterprises have actively sought supplies from the Korean and domestic markets; at the same time, flexible options, delivery methods, import goods. Therefore, the unit's 16 sewing lines are still operating at full capacity, ensuring stable production and meeting the delivery schedule for partners from the US, EU and some Asian countries.

Mr. Trinh Xuan Lam, Chairman of Thanh Hoa Textile and Garment Association, said: When the Chinese market is interrupted by supply at many times, orders for raw materials often arrive 1-2 months behind schedule. . The risk of reduced capacity leading to delay in orders is putting great pressure on enterprises. Meanwhile, switching to import from other markets is not easy for all businesses because transportation and logistics costs are at a high level. The immediate solution that textile enterprises implement is to find more supplies of raw materials and negotiate with partners to extend delivery time.

Not only facing difficulties in raw material supply, many garment enterprises are also having to deal with the situation of high two-way transport unit prices. Vina Thanh Hoa Co., Ltd. has its head office in Thanh Hoa city and 5 garment factories in Yen Dinh, Trieu Son, Hoang Hoa, Thanh Hoa city, Bim Son town, with about 500 workers. Le Dinh Linh, the company's representative, said: Currently, with the impact of high gasoline prices, freight rates have increased by about 20% compared to 2021, reducing profits for businesses. In that context, after the epidemic was controlled, many new enterprises entered the garment industry, making labor competition increasingly fierce. In order to stabilize capacity, meet output and delivery schedule for partners, enterprises constantly offer preferential policies for employees... This is also one of the difficulties for enterprises in the context production "resuscitation" scene.

According to the assessment from the industry and trade industry, in the first 5 months of the year, garment and footwear production is achieving good development steps, becoming one of the key industries with high contribution to industrial growth. Typically, in the first 5 months of the year, the garment industry grew by 38%, the leather and footwear industry by 37%. In addition to the efforts of enterprises in proactively overcoming difficulties, the industry and trade industry is continuing to grasp difficulties and propose appropriate solutions; at the same time, supporting market information, connecting supply and demand. In particular, it will effectively take advantage of the advantages and commitments in the FTAs ​​that Vietnam has joined, strengthen the expansion of new markets to help businesses avoid depending on an export and import market.

Tung Lam

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