At the conference on production situation and proposed tasks and solutions to remove difficulties and support production and business in the last 6 months of the year, which was organized by the Ministry of Planning and Investment, Ms. Chairman of the Vietnam Leather, Footwear - Handbag Association - said that the business is facing a lot of difficulties due to the high inventory rate, which is expected to be about 40%. New orders from August 2022 to the first quarter of 2023 were also extremely difficult, many businesses had to stop production due to a lack of orders. Along with that is high logistics costs, shortage of labor resources and disruption of the supply chain of raw materials and accessories because China still maintains the "Zero Covid-19" policy.
Adding to the difficulties of businesses, Mr. Truong Van Cam - Vice Chairman of the Vietnam Textile and Apparel Association (VITAS) - said that many textile and garment enterprises are facing many difficulties due to the uncontrollable Covid-19 epidemic. thoroughly controlled, in many countries around the world the epidemic has re-emerged. Besides, the world situation is still complicated, affecting the price of energy and raw materials. In particular, many countries in the world, including those that are export markets of Vietnam's textile and garment, have increased inflation, affecting the export growth of the textile and garment industry in the last months of the year.
Textile and garment enterprises face many difficulties
Sharing the same difficulties as enterprises in the textile and footwear industries, Ms. Do Thi Thuy Huong - Member of the Executive Committee of the Vietnam Association of Electronic Enterprises (VEIA), Vice President of the Association of Supporting Industries (VASI) - said that the fluctuating economic and political situation in the world, combined with China's "Zero Covid-19" policy, has caused electronic industry enterprises to lack components for production, and at the same time the inventory high warehouse. Samsung Group has a production base in Vietnam, but in May 2022 also reported a 20% reduction in production and a large inventory of about 50 million products globally. Meanwhile, domestic electronic enterprises are not independent but depend on the supply chains of global enterprises, so they are collectively affected.
In order to solve the challenges for industrial production enterprises, according to Ms. Pham Thi Tinh - Head of Supply Chain Solutions Consulting Department (Vietnam Industrial Support Alliance) - in the current context, to remove difficulties. For manufacturing enterprises, especially small and medium enterprises, the authorities need to create opportunities for businesses to connect at the top of the chain, find suppliers in Vietnam to reduce import costs and avoid source disruption. supply, while creating favorable conditions for domestic manufacturers to sell goods.
Regarding the rising cost of raw materials, fuel and logistics, Mr. Nguyen Duy Minh - General Secretary of the Vietnam Logistics Business Association (VLA) - proposed to stabilize the market prices of raw materials, fuel, and other services. Authorities need to have an impact to stabilize gasoline prices and inflation. Because when the price of gasoline increases, it will affect the input materials of businesses and people's lives.
According to experts, Vietnam needs to continue to improve the business environment, create more favorable conditions for businesses to operate, and recover from Covid-19. Along with that, creating more favorable conditions for businesses to access support policies of the State.
Nguyen Hoa
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