Hanoi (VNA) – The Vietnamese garment and textile sector iscarrying out various measures to bolster production and business activitiesamidst formidable challenges posed by falling demand, high inventory, andgeopolitical instability in several countries, according to insiders.

Enterprises have received more export orders but seen no improvement in priceswhile several contracts even plunge 30-50% in value, they said.

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

Against this backdrop, General Director of the Vietnam National Textile and GarmentGroup (Vinatex) Cao Huu Hieu said that firms need to capitalise on allopportunities, make rational forecast, and get updated with the situation so as to take timely measures.

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

Vinatex Chairman Le Tien Truong stressed that besides challenges, there isample room for development for those with sound business strategies, diverse products, deep engagement in supply chain, and rational steps towards digital economy andgreen economy.

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

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

Along with global demand falling by 5-10%, large fashion brands teetering onthe brink of bankruptcy is another challenge that makes it hard for Vietnamesefirms to recover tens of millions of USD, he said.

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

During January – March, the garment and textile sector’s export turnover grewnearly 10% year-on-year to some 10 billion USD, a locomotive forenterprises to fulfill the set target of 44 billion USD for the whole year./.