According to Vitas, at present export orders for 2010 have been completed and signed by many enterprises who are striving to make timely deliveries. Meanwhile, many enterprises have signed orders for 2011 with a stable number of importers.
TNG Investment and Trade Company (Thai Nguyen), a company specializing in the production of garments exported to the US and EU, said that the company has not only signed export orders in 2010, it has also signed principle contracts for 2011, with total contract value up to US$ 45 million.
Principle contracts signed for 2011 by TNG are mainly with large clients such as Columbia Sportswear, The Children’s Place, Amerex, Hansae and JC Penney – the largest retail group of garments of the US.
Mr Nguyen Van Thoi, Director of TNG said that the main motivation helping TNG sign export orders for 2011 with large firms in the world is the Phu Binh Factory, which will start operation in 2011. The factory will use about 4,000 workers, with 64 sewing lines, significantly raising the company’s total capacity.
Viet Tien Garment Corporation is also negotiating with partners on export orders to the US in 2011, with a value of about US$ 100 million.
As explained by Mr Son, the enterprises with large-scale production often have the advantage in receiving orders from major importers such as Wal-Mart, JC Penny Corporation, K Mart Corporation, Target Corporation and Union Bay, who tend to choose reputable vendors to order with a certain amount from the previous year.
Export orders are creating the opportunity for the textile and garment industry to complete export targets this year and growth targets for the coming years. However, maintaining export growth while ensuring the quality of growth is not an easy task for many businesses, particularly in the present context of increased imported raw material prices and labour costs.
Mr Son admitted that the growth of textile and garment exports in the first seven months this year at 17% is very good, but not sustainable, due to the fact that the industry still faces difficulties in human resources and has yet to take control of raw material sources – two elements to create quality growth.
Assessing the situation of textile and garment exports, Vitas said, exports are favourable, with exports to mid- August 2010 estimated at over US$ 6.3 billion, while with the present order situation, the textile and apparel industry expects to fully achieve its target of US$ 10.5 billion exports this year.
However, Vitas also recommended businesses solve the problem of highly increased production costs and overcome the shortage of workers, and offers solutions for reference, including research on the application of technologies and streamlined production process to reduce the pressure on labour. – VCCI