Experts spell out what textile industry needs to do to recover

Friday, Aug 25, 2023 08:38

The textile industry must become more adaptable and flexible to fight challenges like declining demand to recover quickly, experts have said. — VNA/VNS Photo Hồng Đạt

The textile industry has to proactively combat the challenges it faces such as low demand, a slowing economy, inflation, and low prices, experts have said.

According to the Ministry of Industry and Trade, textile exports fell by 15.1 per cent year-on-year in the first two quarters to US$18.93 billion.

Nguyễn Văn Hải, general director of the Hòa Thọ Textile - Garment JSC, said this year, textile businesses, including his, have suffered from decreasing demand and plummeting prices.

This was due to a decline in orders from many major markets like the US and the EU, said Nguyễn Hải Đường, chairman and general director of textile and garment company M2 Vietnam JSC.

Cao Hữu Hiếu, general director of the Việt Nam National Textile and Garment Group (Vinatex), said the problem was exacerbated by the global economic downturn and increasing competition for the shrinking pie, with exports to the US falling again in the third quarter after a 26 per cent drop in the second.

While exports to Japan rose by 3 per cent in the first half of the year, shipments to the EU, South Korea and China declined respectively by 10 per cent, 7 per cent and 17 per cent, he said.

Đường said though exports might go up this year the problems would generally continue for a while since many enterprises have not received sufficient orders for the second half of the year.

Other nations are also seeing decreasing exports, with some experiencing a fall of 20-25 per cent.

Đường said enterprises should not depend solely on exports, but push promotions and expand the domestic market too.

Hiếu said improving internal training and management post-training, reducing production costs and adopting digital management are crucial to revive the industry.

To enhance productivity, Vinatex has been developing a rigid framework between departments to create production chains, applying technical analysis for buying materials and improving market analysis, he added.

Bùi Văn Tiến, general director of the Viettien General Garment JSC, said his company has been restructuring its management, investing in technology and diversifying products and customer demographics. 

Trương Văn Cẩm, vice chairman and secretary general of the Việt Nam Textile and Apparel Association, said textile companies should also focus on retaining skilled workers, training, fostering customer loyalty, receiving special orders, and cutting costs. — VNS

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