Although it’s only the end of the first quarter of 2024, many textile and apparel enterprises have already begun to receive orders extending until the first half of this year, in contrast to the inventory situation last year.
According to data from the Vietnam Textile and Apparel Association (Vitas), as of the end of the first quarter of 2024, the total export turnover of Vietnamese textile and apparel items is estimated at USD 9.5 billion, up 9.62% compared to the same period last year.
The demand for textiles and apparel in the world market has increased. At this point, most textile and apparel enterprises in the province have secured orders until the end of the second quarter of 2024, and some even have orders until the third quarter of 2024.
Previously, the Vietnam Textile and Apparel Association had set a scenario to achieve an export turnover of about USD 44 billion based on many markets and the return of orders. Regarding textile and apparel enterprises, many positive signals have also been announced by companies through their 2024 annual general meetings (AGMs) and related documents.
Specifically, at the recent AGM of Thành Công Investment and Trading Joint Stock Company (HOSE: TCM), the company’s Board of Directors presented targets for net revenue to reach VND 3,707 billion and net profit to exceed VND 161 billion, increasing by 12% and 21% respectively compared to the audited results of 2023.
In the first two months of the year, TCM’s revenue is estimated to be over VND 624 billion and net profit about VND 41 billion, up 20% and 40% respectively compared to the same period last year. With these results, the company has achieved nearly 19% of its revenue target and more than 25% of its profit target for the year.
In addition, TCM also estimates that revenue for the first quarter of 2024 is higher than the same period last year. The company has already secured about 86% of its revenue plan for the second quarter of 2024.
Meanwhile, Hue Textile Joint Stock Company also reported that export orders have been secured until June 2024, with over 50% of the orders being Free On Board (FOB), even exceeding the production capacity of this enterprise at May 4 Factory and Quang Binh Branch.
Thành Công Investment and Trading Joint Stock Company (TNG) announced that it has secured export garment orders until the first half of 2024 thanks to many major partners having cleared their inventory and Decathlon increasing orders to serve the Olympics. The company has increased its total capacity by an additional 15% with the deployment of 45 additional production lines and the recruitment of an additional 3,000 workers since March 2024.
Information from the “International Exhibition on Textile and Garment Industry – Equipment, Raw Materials and Fabrics 2024” recently, Mr. Le Tien Truong, Chairman of Vietnam Textile Group (Vinatex), stated that after the first two months of 2024, textile and garment export turnover increased by 15% compared to the same period last year, with January alone increasing by 30%. This is a quite optimistic increase compared to the market situation in 2023.
According to Mr. Truong, the textile and garment industry is looking towards a relatively brighter future as the US economy stabilizes, inflation gradually decreases, and Europe also shows many positive signs.
In 2024, Vinatex aims to achieve a consolidated revenue of VND 17,536 billion, up 3% compared to 2023, and a profit of VND 415 billion, up 10% compared to 2023.
Sharing about Vinatex’s direction, Mr. Cao Huu Hieu – General Director of the group stated that the world textile and garment demand in 2024 is estimated at USD 715 billion, slightly higher than 2023 but still lower than 2022.
Therefore, the primary task of the group in 2024 is to firmly implement the solutions proposed and continue to monitor and forecast the situation to respond flexibly.
In all cases, when prolonged difficulties are identified, conventional solutions prove ineffective, and restructuring becomes necessary. Reviewing the organizational model, optimizing the machinery, minimizing indirect labor, while focusing on market activities.
Mekong Asean
