Textile and garment face the risk of supply disruption

Manufacture of garments at Nam Dinh Textile and Garment Joint Stock Corporation.

The fourth outbreak of the Covid-19 epidemic has made it difficult for textile and garment enterprises to maintain human resources and promote goods production. Although businesses have implemented many urgent solutions, if the epidemic is not controlled soon, businesses will face the situation of losing customers, reducing market share, or even closing or stopping production.

Chairman of the Board of Directors of the Vietnam National Textile and Garment Group (Vinatex) Le Tien Truong said that the positive signal of the market in the first six months of the year helped Vinatex achieve a profit of more than 620 billion VND, reaching nearly 90% of the year plan, up 230% over the same period last year and 60% higher than the same period in 2019 (before the Covid-19 epidemic). However, the fourth outbreak of Covid-19 to date has adversely affected production and business activities of enterprises. The provinces and cities apply the distance, and each locality has different ways of applying it, making the ability to operate, coordinate and support businesses very difficult, especially in the southern provinces and cities where businesses bear the burden. severely affected by the epidemic. In order to ensure production efficiency, some enterprises have organized production according to the "three on-site" method, but the effect is not as expected. Many businesses try to take on more delivery, increase processing resources, use resources outside the distanced area, etc. to soon complete the contract as required.

Deputy General Director of Garment 10 Corporation Bach Thang Long said that in the first months of the year, the source of goods arrived, businesses ensured income and jobs for workers. However, the adverse developments of the Covid-19 epidemic have caused businesses to lack human resources to maintain production and are facing many new risks and challenges such as costs and competition for workers between industries on a daily basis. increasing. Just one infected case will be isolated, forcing the isolation of the entire factory and production area. If the epidemic is not controlled, a large part of orders will be transferred to other countries by partners. In fact, as soon as the epidemic occurred in the southern region, production was interrupted, many partners moved orders to other places, causing businesses to suffer economic losses and face the risk of reducing market share. Not even an order to produce. Currently, May 10 has developed a "three-on-the-spot" plan to handle the situation and ensure production efficiency at its facilities in Hanoi, taking advantage of colleges, kindergartens, and dormitories under the system. May 10 for about 700 people out of a total of 2,000 people. However, it is only a temporary solution, only to deal with urgent orders. In the long term, businesses expect the pandemic to be controlled and extinguished soon so that they can rest assured to invest and organize production. Sharing the same opinion, Chairman of the Board of Directors of Hung Yen Garment Corporation Nguyen Xuan Duong affirmed that from July onwards is a stressful time for textile enterprises. If the epidemic is not controlled and production is stopped for a few weeks or a month, enterprises will lose more than 10% of revenue. Although there is no shortage of orders, it is worrisome that if the enterprise fails to promptly return the goods according to the contract, they will be fined or change to another shipping method with a much larger cost than before.

According to Chairman of the Vietnam Textile and Apparel Association (Vitas) Vu Duc Giang, Vietnam's textile and garment industry is facing a lot of pressure. The outbreak of the disease caused many southern businesses to close, moreover, workers are massively leaving the southern region to the southwestern provinces, the Southeast and the northern provinces, until businesses open. return may be only 65% ​​of workers return to work. The implementation of vaccination for workers is now essential to avoid the risk of supply disruption. Vitas proposed the Government to review and assess the status of industrial parks, especially the textile and garment industry in the localities, to have a policy of prioritizing vaccination for workers to ensure stable production of enterprises. .

Chairman of the Board of Directors of Vinatex Le Tien Truong affirmed that in order to retain customers and ensure the supply chain, jobs, early vaccination against Covid-19 for employees is the fundamental and long-term solution to help employees stay safe. Stable and growing business. In fact, many enterprises have organized "three on-the-spot" work, but the maintenance of production under this plan is not long-term. The reason is that the labor force participating in registration to stay at the factory is uneven, in some places only 10% to 20% of the total number of employees of the factory can be organized, and labor productivity decreases. While organizing in this way increases costs, it is only considered as a short-term solution from three to four weeks to be able to complete the orders signed with customers to reduce losses. In particular, concerns about the occurrence of F0 in the factory disrupting production, possibly ruining all the efforts that enterprises are making...

Therefore, businesses are trying by all means to ensure the safety of workers; focus on improving labor productivity in the last months of the year with a comprehensive solution of management - technology, equipment - remuneration for employees; develop production and business plans for the coming year with different scenarios, anticipate the worst case scenario before the epidemic is over and the possibility of customers moving elsewhere. From there, having appropriate response plans, researching contract types, manufacturing to meet new business conditions, not only prioritizing FOB (purchase of raw materials - production - semi-finished products), etc. ensure the production and export of goods.

Articles and photos: QUYNH CHI

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