Despite facing greater challenges when compared with the corresponding period last year, the textiles and clothing manufacturing industry in Da Nang has showed signs of recovery since the third quarter of 2023, creating acceleration for the industry for the rest of the year.

The textiles and clothing manufacturing industry in Da Nang is making great efforts to promote investment in digital transformation and emerging technologies to increase business productivity. Picture is taken at the yarn spinning facility of the Hoa Tho Textile and Garment Joint Stock Corporation. Photo: MAI QUE

In the first 8 months of 2023, the Hoa Tho Textile and Garment Joint Stock Corporation reported consolidated revenue of VND 3,231 billion, equivalent to 80% of the figure recorded in the same period in 2022, and 72% of the year’s target. The company earned USD 80 million in export revenue, equal to 90% of the figure recorded in the same period last year, and 80% of the year’s target, of which, exports to the US, European countries, Asia and other countries accounted for 46%, 14%, 28%, and 12% respectively.

During the 8-month period, the company generated a profit of VND 155 billion, equivalent to 69% of the figure recorded in the corresponding period last year, and 82% of the year’s plan.

Mr. Nguyen Duc Tri, CEO of the Hoa Tho Textile and Garment Joint Stock Corporation said, despite bounce back performance at a much faster rate than previous months, total market demand for textile and clothing products is still low, and is forecast to remain weak into the first half of 2024.

Currently, the company is focusing on accelerating the completion of such projects as the third phase of the Trieu Phong Garment Factory located in Quang Tri,  and innovation of the Quang Ngai Garment Factory. In addition, importance is attached to promoting investment in new machinery and production technologies, as well as boosting digital transformation in a bid to improve production efficiency.

In its efforts to achieve its goal of earning VND 754 billion in revenue in 2023, the Vinatex Da Nang Joint Stock Company is adopting many solutions with a focus on creating the optimal marketing plan in accordance with the growth rates of labour productivity in the company, and reach more customers, Mr. Ho Hai, the General Director of the company remarked.

The company will continue to implement such projects as adjustments to operational period of the Phu My Export Garment Factory located in Binh Dinh Province to 2053, and the second phase of Nghia Hanh Project in Quang Ngai Province.

In particular, after one year of implementing digital transformation, the company's productivity increased by about 20% while its working hours decreased by 15%, and its production costs reduced by 10%.

Meanwhile, Mrs. Pham Thi Xuan Nguyet, the General Director of the March 29 Textile and Garment Joint Stock Company, remarked that men’s suits produced by the company are a bestseller. The company targets to earn VND 940 billion in total revenue, and generate gross profit of VND 23.5 billion in 2023.

To achieve the above-mentioned financial targets, the company will continue its efforts to achieve Green Factory certification standards at all its production facilities, and create a plan to convert textile factories and warehouses into clothing ones. Heed will be paid to investing in suit production line, and carrying out the second phase of the Duy Trung Garment Factory located in Quang Nam Province.

The textiles and clothing manufacturing industry in Da Nang accelerates its production in the fourth quarter of 2023. Picture is taken at the Mach 29 Textile and Garment Joint Stock Company. Photo: MAI QUE

According to textile and clothing manufacturing companies in Da Nang, their orders have increased significantly since the end of the third quarter of 2023, thereby building momentum in their recovery in the fourth quarter.

Data provided by the Da Nang Statistics Department showed that the local textiles and clothing manufacturing industry’s consumption index in the first 9 months of the year increased by 69.6% compared to the same period last year.

Output of some textile products in September 2023 increased considerably compared to the previous month. In detail, output of woven fabrics of cotton, containing 85% or more reached 2,626 square metres, up 5.87%, that of crochet and knit clothes for adult jumped by 29.4%, while that of un-knit and un-crochet clothes for adult climbed by 11.48%. In the third quarter of 2023, output of woven fabrics of cotton, containing 85% or more reached, reached 7,650 square metres, a 45.35% rise from the previous quarter.

Despite the bounce back, the textiles and clothing manufacturing industry in Da Nang still faced a lot of difficulties and challenges. Da Nang exports of textiles and clothing were worth an estimated USD 387 million in the first nine months of the year, a decline of 11.6% over the same period in the previous year while the production index of the city’s textiles and clothing manufacturing industry fell 7.21% over the same period.

In its efforts to support textile and clothing manufacturing companies in Da Nang, the Municipal Department of Industry and Trade is implementing Plan No. 108 dated May 17, 2023 on the development strategy for Viet Nam's textiles, clothing and footwear (TCF) industry to 2030, with a vision to 2035 to promote the development of the TCF industry in Da Nang.

Mr. Nguyen Van Tru, the Deputy Director of the Municipal Department of Industry and Trade, said that focus is on implemeting business connections programs. Most notably, the first-ever Manufacturing Expo which was the city’s most Comprehensive Show for Manufacturing and Supporting Industries took place in the middle of September in order to help textile and clothing manufacturing companies in Da Nang connect with their domestic and foreign partners, and seek cooperation opportunities with them. Special attention is paid to faciliating these companies’ access to the city's support policies to help them promote technological innovations to improve their production.

Furthermore, importance is attached to developing industrial cluster infrastructure in line with the city’s planning, of which, a dedicated wastewater treatment plant must be included in order to attract domestic and forerign investors to put their money in supporting industries for the textile and clothing manufacturing in Da Nang. Moreover, the Department will increase publicity of free trade agreements (FTAs), and organize seminars and training courses on the benefits of FTAs for local businesses.

Reporting by MAI QUE – translating by H.L