Businesses in Da Nang are entering the sprint phase to complete the production and business plans in 2022.

Workers at the Hoa Tho Textile and Garment Corporation. Photo: Q.TRANG

In the first half of the year, many industrial products experienced a deep decline due to a shortage of raw and input materials and high production costs due to the influence of the increased prices of imported raw materials, fuel and others materials. In addition, the output of products is limited when the supply chain is not really seamless due to a hike in gasoline and oil in the world as well as the war situation in some countries.

In recent days, more than 250 workers of the Da Nang Forestry Product Export JSC based in the Hoa Cam Industrial Park, Cam Le District, are actively working to keep up with orders for partners in the European market.

Director of the company Huynh Trinh said his company had witnessed a sharp decrease in the purchasing power of wood products in European countries due to the impact of the armed conflict between Russia and Ukraine as well as record-high inflation rates in European countries. Additionally, some customers had to extend the time to receive goods, or even canceling orders, leading to a significant increase in the inventory amount.

However, the number of orders from the company’s traditional partners is on the rise, and the company has recruited additional 40workers.

Currently, the company is concentrating on production activities so that about 20-30 containers of goods will be exported to foreign partners each month in the fourth quarter. It strives to complete the goal of exporting 100 containers of goods in the first quarter of 2023.

“From now until the end of the year, we will accelerate production to meet market demand and complete signed orders during the year, as well as conduct negotiations to sign new orders in 2023. Great efforts will be made to renew machinery and equipment as well as soon put its new 1,400m² factory into operation. By late 2022, the company will record a 15% increase in its revenue compared to 2021, whilst the growth rate of output will reach 12%” said Mr. Huynh Trinh.

In a similar vein, the BQ Shoe Manufacturing and Trading Co., Ltd. is racing to prepare for the year-end market.

According to the company’s Director Phan Hai, the company has developed a production plan since late July, with a focus on conducting mass production in September and October with the goal of bringing quality products with diverse designs and stable prices to consumers.

Till date, the company has actively worked and negotiated with partners and suppliers, imported reserve materials and built backup plans for the production and distribution of products.

The company’s revenue between January and September increased by about 75% compared to the same period in 2021, and the figure is expected to rise strongly on the occasion of Tet Festival 2023, said Mr. Hai

Workers of the Da Nang Forestry Product Export JSC are busy completing their year-end orders. Photo: Q. TRANG

According to the city’s industry and trade sector, so far the year, many city-based enterprises have achieved quite positive business and production results. This, however, does not mean that they have run out of difficulties and challenges.

As shared by many economic experts, in the coming time, domestic enterprises will continue to encounter difficulties, especially in the context of international conflicts, and the unforeseen developments of the world’s financial, currency and petroleum markets.

External influences such as currencies of many countries depreciating sharply, inflation rising, market opening according to integration commitments, and high raw material prices make enterprises face difficulties if they do not take the initiative to take response solutions.

Agreeing with this statement, Mr. Nguyen Chi Truc, Director of the Da Nang branch of the Vinatex International JSC, said that compared to 2021, the number of employees of the company has increased from 450 to 750.

However, the business situation of the unit is currently facing difficulties due to a sharp decrease in orders from key markets of the USA and Japan.

“As a manufacturer and supplier of textile fabrics for domestic and international markets, we expect that our production results as well as revenue in the last quarter of the year will be better than that the first quarters of the year. Currently, we have invested in a modern textile system, and updated the market situation to have an orientation for the next phase" said Mr. Truc.

Reporting by QUYNH TRANG - Translating by M.DUNG