In the first months of 2022, the apparel manufacturing sector recorded a growth of 11.5% over the same period in 2021, in which, the high-end adult suit product line went up 17.2%. This is a good sign, contributing to job creation and income generation for many workers.

Workers at are seen the March 29 Textile and Garment Joint Stock Company. Photo: KHANH HOA

Comments from large textile enterprises in the city show that, in the first months of 2022, the supply chain and market of the textile industry have recovered with high demand after two years of being adversely affected by the COVID-19 pandemic.

In addition, the fact that many free trade agreements, especially the EU-Viet Nam Free Trade Agreement (EVFTA), which is in force, has become a lever to help textile and garment enterprises overcome difficulties and speed up the process of restoring production and business activities.

Mr. Nguyen Duc Tri, Vice Chairman of Viet Nam Textile and Apparel Association cum Chairman of the Board of Directors of Hoa Tho Textile and Garment Corporation, said that Viet Nam's garment exports are mainly high-value items and thus still expand market share.

Particularly in the European market, with the EVFTA coming into effect, it is forecast that textile and garment exports will climbed by 67% by 2025.

Currently, many businesses have started some strategic adjustments to their operations for next 1 - 3 years with a focus on promoting automation, diversifying products, developing new products as well as investing in improving labour skills.

From a different perspective, according to Mr. Huynh Van Chinh, the Chairman of the Board of Directors of the 29-3 Textile and Garment Joint Stock Company, currently, most of the ‘made-in- Viet Nam’ textile products are available in major markets around the world such a the US, EU, Japan and South Korea.

Notably, free trade agreements such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EVFTA that took effect have created a great impetus for the industry to increase import-export turnover.

Currently, with the good recovery of the market, the company has received stable orders to ensure jobs and income for nearly 4,000 employees.

In order to participate deeply in the global supply chain, over the past time, the 29-3 Textile and Garment Joint Stock Company has focused on promoting investment in automation, increasing productivity and reducing costs.

Along with that, it is aiming to build a closed chain to control raw materials and improve the competitiveness of products.

The company has built two new factories with green factory standards in the neighbouring  province of Quang Nam, promote the application of wastewater treatment technologies.

For many years now, the company has been restructuring the production of cotton towels, serving the domestic market, by only processing high-quality white ones supplied to hotels, restaurants, and resorts instead of diversifying colours as before in order to limit the use of chemicals and dyes in the production process. Besides, the company has also given heed to promote the production of adult suits.

Production activities are in progress at the Da Nang branch of the Scavi Hue company based in the Da Nang Industrial Park, Son Tra District. Photo: KHANH HOA

At the Da Nang branch of Scavi Hue Company, a unit specializing in producing underwear, serving the domestic market and exporting to Europe, the US and a number of Asian countries, nearly 100% of workers are engaged in labour. The productivity will reach more than 90% as compared to the end of 2021.

The supply chain is connected with a stable source of goods to help businesses quickly restore production workshops to meet the delivery schedule.

As reported by the Da Nang Department of Statistics, the industrial production industry continued to recover quite well in recent years with the Index of Industrial Production (IIP) in the first 4 months of this year growing by 2.35% over the same period last year. In particular, the apparel manufacturing industry with a growth rate of 6.4% contributed significantly to the recovery of the entire industry.

In April 2022 alone, a number of industrial enterprises have overcome difficulties, actively searched for the supply chain of raw materials, and called for orders.

In parallel with that, boosting the production of inventory orders helped product output increase higher than the previous month as well as the same period last year.

For example, the Kad Industrial S.A Viet Nam Co., Ltd. and the March 29 Textile Joint Stock Company made good performance in this trend.

Thanks to this, the IIP of the local apparel industry soared by 11.5%, non-knitted adult clothing products soared up 31.7%, and adult suits up17.2% in the first 4 months of this year.

Reporting by KHANH HOA – Translating by A.THU