VITAS Chairman Vu DucGiang held that motivations for brands to choose Vietnam include programmes onsustainable development, greening, digital management and circular economy inthe country, which support the country’s stability and development, as well asthe encouragement of domestic garment and textile firms to increase creative products and reduce processing for partners.
Many businesses expectthe market will recover in the second or third quarter with orders increasingagain, which means they are in need of stable and skilled workforce, he said.
After the long LunarNew Year (Tet) Festival last month, many enterprises have promptly resumed production to completetheir orders.
In Garment 10 Corporation,12,000 workers have returned to work. This year, the firm aims to earn arevenue of 4.5 trillion VND (190.88 million USD).Currently, it is recruiting additional 800 labourers.
Seeing positivesigns from markets, right from the beginning of the year, many businesses havemobilised 100% of their employees for production, while recruiting morehigh-quality human resources to fulfil high-end orders from partners.
According to VITAS, free trade agreements are becoming a motivation for the transition ofinvestment inflow from other countries to Vietnam, helping domestic firmsdiversify markets and products. Previously, domestic enterprises only supplied asmall proportion of products to Muslim countries, but now the rate is muchhigher thanks to the switching of parts of their orders from Bangladesh andMyanmar to Vietnam, it said.
At the same time, thedomestic garment and textile sector is working to reduce imports and increase thelocalisation of material, which is considered a way for them to reducedependence on imported materials for production.
Data from the VITASshowed that the localisation of garment and textile has reached about 49%,which is expected to increase to 51-55% in the 2023-2025 period.
Despite difficultiesin major markets, the association still forecast that Vietnam’s garment andtextile exports will reach 45-47 billion USD this year. It underlined thatcompanies with stable workforce will grow faster when the market recovers inthe second quarter./.