Production activities at Dony Company. Photo: Provided by the enterprise

Export orders recover

According to records from enterprises, year-end export orders are increasing, especially in the fields of textiles, footwear, wooden furniture, etc. For example, up to now, Thanh Cong Textile Garment Investment and Trade Joint Stock Company has received about 92% of the revenue plan for orders in the fourth quarter of 2024 and about 90% of the revenue plan for orders in 2024. In addition to exporting traditional products, the enterprise has been promoting product diversification, especially environmentally friendly products, recycled products and high-value products, to enhance the product value chain.

A representative of Thanh Cong Textile Garment Investment and Trade Joint Stock Company said that the enterprise is continuing to expand customers in markets with much room, as well as searching and expanding customers and new markets to increase export revenue. At the same time, promote the development of the current and future domestic markets. With the forecast that the textile and garment export situation will be more positive in the last months of the year and based on the level of order reception, the enterprise expects to achieve the business plan set out in 2024.

Excitedly sharing with reporters, Mr. Nguyen Quang Anh, Director of Dony Company, said that the business results in the first 8 months of 2024 of the enterprise increased by more than 50% compared to the same period last year and orders for export production until the end of the year. This achievement, in addition to maintaining traditional customers in the country and exporting to the US, the Middle East, Dony also exploits in countries in the region such as Cambodia, Thailand, Malaysia and Singapore.

Similarly, the export situation of wood and wood products of many enterprises is also having a good growth rate. Mr. Nguyen Quoc Khanh, Chairman of the Board of Directors of AA Architecture Construction Joint Stock Company, said that AA's export orders are currently increasing with interior projects abroad such as the US, the Middle East and famous tourist areas in the world.

Mr. Nguyen Ngoc Hoa, Chairman of Huba, said that a very encouraging sign is that many businesses have had export orders until the end of the year and businesses are also implementing these orders. Notably, agricultural orders are currently good and at good prices. "Coffee export prices have never been so high and Robusta coffee output has never been higher than Arabica coffee," Mr. Hoa emphasized.

Barriers to overcome

Although production orders are increasing, businesses say there are still many challenges ahead, such as labor shortages; high input and transportation costs; strict requirements from customers, etc.

Mr. Nguyen Ngoc Hoa said that businesses in Ho Chi Minh City in particular and Vietnamese businesses in general are facing a situation where they have orders but the prices are not good, because they are in a position of needing orders and are being "forced to pay". In addition, with agricultural products, there is a risk that partners require traceability, but businesses are still doing it in a fragmented manner, not yet a standard system. At the same time, if we analyze the structure, the orders mainly come from the FDI sector, while Vietnamese businesses are still "running around for each meal" with each order.

On the other hand, the new technical barriers are currently increasing mainly around green criteria, requiring the ability to meet the requirements of sustainable development of businesses. According to businesses, most export markets today strictly control the supply chain from labor resources to environmental impacts. Another prominent challenge is the digital transformation process, towards smart manufacturing. This is an inevitable trend that requires businesses to change to adapt by gradually switching to automated production and smart manufacturing. This helps increase labor productivity, increase product quality, optimize operating costs, thereby increasing competitive advantages for businesses.

For example, the Bangladesh textile and garment industry has been successful in building the "green textile and garment" brand, attracting many orders. Therefore, the problem is to find new factors for Vietnamese products, create new features for Vietnamese products, Vietnamese brands to go further. This new factor is the "green" factor. We need a "green forest" - a whole Vietnamese community working together, not just a few individual businesses, Mr. Nguyen Ngoc Hoa expressed.

To “adapt” to difficulties, maintain operations and develop long-term, Chairman of the Board of Directors of Sadaco Company Tran Quoc Manh said that businesses proactively respond by accepting low profits, not “hitting hard” on long-term orders like before, but instead making short-term orders. At the same time, they are ready to make samples according to customer requirements to increase value. Participating in trade promotion will also help businesses update new trends, grasp customer tastes to have appropriate business strategies...

In addition, according to some businesses, in the current highly competitive context along with high production input costs, businesses have accepted very low profit margins to maintain operations. To have competitive prices, in addition to comprehensively reforming production processes, offices..., businesses have been proactively coordinating with suppliers to reform and reduce profits.