Enterprises strive to keep production pace

Orders have dropped for most key export industries of furniture, textile-textile, footwear, seafood, etc., causing the export growth target in 2023 to face considerable pressure. In this difficult period, enterprises have tried to maintain their workforce, rearrange reasonable shifts... to keep their production pace.

Changing situation

In the first quarter of 2023, the province’s industrial production continued facing many difficulties. Although province-based enterprises were proactive to change their approach, introducing products and searching new customers, the number of orders and their size decreased sharply. In order to keep their production pace, they must make efforts to turn the situation, including anticipating problems in the future.

Textile and garment enterprises strive to find orders to maintain their production and business activities

According to a report by provincial People's Committee, the province’s industrial production index in the first quarter of the year was estimated at increasing by 0.15% over the same period last year. Of these, processing and manufacturing industry increased by 0.4%. This figure showed that the local industrial production is facing many difficulties. Difficulties that enterprises are facing from the shrinking market, large inventories, input material prices on increase, difficulty in accessing capital... Many enterprises have stopped signing labor contracts in large quantity, due to the lack of orders. However, instead of reducing the number of employees, many enterprises are trying to arrange and optimize production to "keep jobs" for employees.

According to provincial Textile and Apparel Association, since early this year, many enterprises in the sector identified that there are many difficulties this year with few orders and short signing time, but enterprises still do not reduce their laborers. Besides, they have tried to find new orders to stabilize employees ‘income and employment. There have been even many enterprises accepting to sew bags and seasonal items to creating jobs for workers.

Trieu Phu Loc Joint Stock Company in North Tan Uyen district has still tried to maintain production to keep jobs for employees. The company has even increased wages for employees under the roadmap. This seems to be a very normal thing. But in the current conditions, it has helped the company keep employees. The company is trying to find and negotiate a number of large orders with partners in the US, and it is expected that the company’s situation after the second quarter of 2023 will get better.

Difficulties are not only in domestic companies, but also in FDI ones. Alexander Christopher Falter, General Director of Ecco Company in Bau Bang district said that the company now has more than 1,600 employees. Although facing many difficulties in raw materials and orders, Ecco has still not laid off workers. It has used this time to focus on training and improving techniques among employees.

Ha Binh, Director of the Personnel Department of Bowker Vietnam Company in Thuan An city said that with its desire of stabilizing employees' lives, the company is approaching new markets to find orders and maintain incentive policies so that they can keep their mind in work. The company has also considered rewarding workers with achievements in labor and production. This is an opportunity for employees to improve their skills.

More resources needed

To remove difficulties, many enterprises have proposed authorities to consider speeding up procedures for tax exemption and reduction and unemployment insurance support. All aim at helping enterprises get more resources, quickly making capital turnover, having more budget to retain and take care of employees.

Nguyen Liem, Director of Lam Viet Wood Company said that members of Binh Duong Furniture Association are trying to retain employees by dividing alternative production shifts. This is because if workers are laid off, they will find another job or return to their hometown. When the company’s orders come back, there will be no workers for production. Recruitment, especially for skilled workers is difficult and takes a long time. Besides, enterprises must bear the costs from workers' wages, insurance, waste water treatment, and periodic environmental inspection to infrastructure usage, etc.

Pham Van Xo, Chairman of provincial Association of Importers and Exporters said that currently, lending interest rates from commercial banks are being maintained at a quite high level, making the business community’s production and business activities very difficult. They must overcome the burden to maintain their production and export of goods.

In the face of enterprises ‘current difficulties, Vo Van Minh, Vice-Secretary of provincial Party Committee, Chairman of provincial People's Committee directed all level-authorities and sectors to be proactive to review, remove or propose competent authorities to remove obstacles pertaining to land, construction, investment procedures, hindering production and business activities; continue closely monitoring the world’s market developments, take measures to maintain export momentum to traditional markets and expand into new markets.

Reported by Tieu My-Translated by Kim Tin