Enterprises accelerate production and regain growth momentum

After a difficult period, some key manufacturing sectors such as garment textiles, wood, mechanics... have gradually prospered with high growth and many orders returned.

The province's industrial production index in the first quarter of 2024 continues to increase. In photo: Manufacture at Kim Chung Mechanical Company (Tan Uyen City).

 Orders grow

According to reports of Provincial People's Committee, provincial Industrial Production Index in the first quarter of 2024 is estimated to increase by 3.87% compared to the same period in 2023. Most enterprises expect industrial production to continue to recover in the coming time. Survey results showed many improvements. Enterprises have proactively sourced raw materials and signed many contracts, boosted production to serve domestic and export demands.

Enterprises signed new orders, this has helped export and import activities have improvement signs, with the number of new orders in key industries such as wood processing, machinery and equipment, footwear, textiles... all increased. Nguyen Chi Trung, Chairman of Gia Dinh Group Joint Stock Company, a large enterprise in leather and footwear sector, said that recently the enterprise received a series of orders from major partners in the world, enough for production until the end of June 2024. To keep up with export orders, at the company's factories, workers work overtime 5 days/week, adding 2 - 2.5 hours each day.

In textile and garment sector, although also affected by geopolitical conflicts and a decline in orders from the US and Europe, many garment enterprises have received more orders from major brands. Vu Thong Hiep, Head of Administration - Human Resources Department of Kung Kiu Vietnam Garment Company (Tan Uyen City), said that compared to the same period in 2023, this year's orders have tended to increase. This production season, customers schedule quotes for large quantity orders, promising many positive signals for the whole year 2024. “This is the result of many trade promotion activities and direct meetings in different markets. Businesses also accelerate green transformation to adapt to regulations of famous brands. The entire company's workforce is working overtime," Hiep said excitedly.

Meanwhile, in mechanical engineering sector, Trinh Hong Chau, Director of Kim Chung Mechanical Company (Tan Uyen City), said that thanks to deeper participation in the global supply chain, the company has received stable orders. Up to now, the company has connected with 5-6 large FDI customers. The situation of export orders so far have been very good, with many customers continuously coming to the company from the end of 2023. However, Chau added: “Currently, businesses lack capital and interest rates are still high. Currently, old loans have interest rates above 12%, mobile loans above 10%. In the difficult situation of the global economy, such high interest rates make it very difficult for us to accept new orders and promote connection and development of the supply chain. I look forward to receiving the bank's support to welcome the rapidly shifting supply chain."

Actively connect

Also according to Trinh Thi Hong Chau, working in supporting industries, serving FDI enterprises or exporting, prices must be competitive to keep orders. The company has many internal solutions such as changing its administration system, saving costs to stabilize production, but is still facing difficulties with high interest rates when borrowing loans.

In fact, industrial production activities are showing many signs of recovery and growth after a series of support measures from competent agencies and efforts of businesses. This is a signal that the manufacturing business sector has made many movements in terms of quantity, productivity and regained growth momentum.

Nguyen Thanh Toan, Director of Provincial Department of Industry and Trade, said that the fact that businesses have orders again shows the effectiveness of a long period of restructuring, arranging labor, reducing costs, and improving competitiveness. Provincial industry and trade branch will continue to implement many solutions to support businesses. In addition, the industry and trade branch will connect businesses with important events organized by Ministry of Industry and Trade and the province in the coming months to develop the international goods supply chain. This will be an opportunity to help enterprises increase orders and stabilize production.

 Reported by Tieu My - Translated by Ngoc Huynh