Enterprises in garment and textile sector have received more export orders but seen no improvement in prices while several contracts even plunged 30-50 per cent in value, they said.

Enterprises have received more export orders but seen no improvement in prices. (Photo: VNA)

Furthermore, cotton prices are expected to soar in the coming time due to speculation and logistics difficulties. In the meantime, it could be hard for Vietnamese firms to compete in the Chinese market where tax incentive and support policies on transport costs and electricity have been rolled out to back up domestic production.

Against this backdrop, the General Director of the Vietnam National Textile and Garment Group (Vinatex) Cao Huu Hieu said that firms need to capitalize on all opportunities, make rational forecasts, and get updated with the situation to take timely measures.

Besides, they should drastically restructure their organizations, apply advanced management solutions, and push ahead projects that help improve productivity, he added.

Vinatex Chairman Le Tien Truong stressed that besides challenges, there is ample room for development for those with sound business strategies, perse products, deep engagement in the supply chain, and rational steps towards a digital economy and green economy.

The group will keep a close watch on the market and operation of its members to pen flexible and breakthrough measures to develop products and seek new markets to ensure business efficiency, he said.

Meanwhile, Chairman of Hung Yen Garment Corporation Joint Stock Company Nguyen Xuan Duong held that high input costs and workforce transition to such markets as the Republic of Korea and Japan have placed a burden on the company.

Along with global demand falling by 5-10 per cent, large fashion brands teetering on the brink of bankruptcy is another challenge that makes it hard for Vietnamese firms to recover tens of millions of USD, he said.

Duong suggested competent ministries and sectors issue suitable policies to help enterprises get access to capital to strengthen investment and bolster production, adding workers also need assistance to improve their livelihoods.

During January – March, the garment and textile sector’s export turnover grew nearly 10 per cent year-on-year to some 10 billion USD, a locomotive for enterprises to fulfill the set target of 44 billion USD for the whole year.