Between January and August 2021, Da Nang’s textile and clothing industry generated UD$ 304 million worth of exports, up 18.4% from the same period a year ago. The textile and clothing industry secured its position as Da Nang’s second largest export sector, sending optimistic signals to this sector for the rest of the year.

Da Nang’s textile and clothing industry is making huge efforts to overcome difficulties caused by COVID-19 in order to maintain stability in production, offering it great hope for growth by the end of this year. Picture is taken at the Hoa Tho Textile and Garment Company. Photo: KHANH HOA

Maintaining stable production

Data published by the municipal Department of Industry and Trade show that Da Nang is now home to 9 textile and fashion companies. Included are domestic companies such as the Hoa Tho Textile and Garment Joint Stock Company, the March 29 Textile and Garment Joint Stock Company, the Hoa Khanh Textile Co., Ltd., along with FDI enterprises like Advance Nonwoven Vietnam Co., Ltd, and Kane-M Da Nang Co., Ltd.

During the past 8-month period, many textile and fashion companies have moved in the right direction in their development strategies with a focus on increasing labour productivity, raising localization efficiency, investing in manufacturing equipment and human resources in an attempt to be ready to welcome new customers who want to shift their purchase orders. Some Da Nang companies can produce high-quality goods to be competitive in international markets. Included are the Hoa Tho Textile and Garment Company and the March 29 Textile Joint Stock Company.

Besides, many companies have quickly switched to produce medical goods in the context of COVID-19 such as medical protective clothing and surgical masks. According to the Da Nang Department of Industry and Trade, the textile and garment industry has thrived during first 7 months of 2021 but its growth momentum slowed down in August due to the city’s imposition of strict social distancing measures. As a result, in the first 8 months of the year, production output was estimated to decline by 0.81% in the textile industry with falls of an estimated 10.34% in the clothing sector compared with the corresponding period in 2020.

Picture is taken at the March 29 Textile and Garment Joint Stock Company. Photo: KHANH HOA

High hopes for growth for the rest of the year

Forecasts from textile and fashion companies show that, global demand for Da Nang produces could be quite high until the end of the year as foreign countries around the world are speeding up COVID-19 vaccinations in order to reopen their economies. The world's largest economies such as the United States and European countries are deploying stimulus packages in an attempt to stimulate demand and speed up economic reopening, as well as promote the consumption of goods, including Viet Nam’s textiles and clothing. In addition, Da Nang’s textile and fashion companies may find new foreign customers when exploring shifting trends in global production chains after the pandemic passes.  

However, textile and fashion companies expressed concern over the complex developments of COVID-19 in Vietnamese localities, especially in the southern provinces and cities where there are many important partners, causing transportation disruptions.  

Meanwhile, textile and fashion companies are trying to adopt the stay-at-work solution in line with the current direction from the Da Nang government, resulting in an increase in production costs in addition to facing greater risk of order cancellations by foreign customers as they shift their orders to another country.

The growth of textile and garment industry in the coming time will depend on the COVID-19 situation in the city and vaccine coverage across the city, and the whole country at large.

Reporting by KHANH HOA – reporting by H.L