Production accelerated to regain growth

In the first months of the year when the number and size of purchase orders decreased, industrial production enterprises are looking for various solutions to overcome difficulties and fulfill growth targets.

The textile and garment industry strives to maintain production in the new situation. In the photo: Weaving line at Kolon Binh Duong Co. Ltd. factory in Bau Bang Industrial Park

The positive signal

In 2023, the province set a target of an industrial production index increase of about 8.7%. In order to realize this goal, right in the first working week of the Lunar New Year, the provincial People's Committee directed departments, branches and localities to perform key tasks of supporting businesses to speed up production.

Currently, textile and garment enterprises are entering the race to recruit workers, especially skilled ones. In addition to ordinary orders, textile and garment enterprises also have high-class orders with complex requirements that are being transferred to Vietnam by partners thanks to their production capacity and good management. Many businesses predict that the market will soon recover in the second and third quarters when purchase orders will increase again. Before the positive signals from the markets, many businesses from the beginning of the year have deployed 100% of their employees along with recruiting more high-quality human resources to meet high-end orders from partners.

Do Duong Hoai, Manager of ASG Vina Company ASG Vina Company Limited in Thuan An city, said that the company actively received orders from the end of 2022. Up to now, 100% of workers have returned to work in workshops. “With the efforts of the past time, the company has had orders until the middle of 2023. Currently, ASG Vina continues to announce the recruitment of 100 more garment workers in order to ensure the production plan to be on schedule. Workers working at ASG Vina will have an average income of VND 7.3-9.5 million a month,” said Do Duong Hoai.

According to Kim Jeong Won, General Director of KyungBang Vietnam Company in Bau Bang Industrial Park which is a key yarn factory of many major partners, despite the difficult economic situation, the company has so far still maintained the production of 100 - 200 tons of yarn per day for purchase orders available until the second quarter of 2023. Currently, partners are negotiating prices for the next orders in 2023. All are creating favorable conditions for the company to complete its 2023 target.

Developmental investment

Phan Thi Phuong Linh, Human Resources and Administration Director of Earth Corporation Vietnam Co. Ltd. in Nam Tan Uyen Industrial Park, said that with a high rate of workers returning to work after the Lunar New Year holiday, businesses have immediately started production and business operations with a lively spirit, great determination and proactive speed from the beginning of the year. Along with accelerating production in 2023, the company pays special attention to taking care of employees. Currently, along with strengthening production management, the company implements the regime and a good working environment for employees to contribute to the development of the company, which is how to preserve the asset of the business in the development process.

The good news in the context that the economy is expected to face many difficulties was that Binh Duong Water - Environment Joint Stock Company (BIWASE) recently announced its policy of investing in 5 companies in the field of water and sanitation, raising the ownership rate to about 50-100% of capital. Specifically, BIWASE will pour capital into Long An Enterprise Water Infrastructure Investment Joint Stock Company, Chau Thanh Urban Construction Joint Stock Company, Can Giuoc Urban Construction Joint Stock Company, and Water and Gas Joint Stock Company of Bang Tam Environment, Quang Binh Enterprise Water Infrastructure Investment Joint Stock Company. These are all common shares that are freely transferable. Upon completion of the transaction, these entities will become subsidiaries of BIWASE.

It is forecasted that in 2023, businesses will face many difficulties due to the decreasing demand of foreign markets, slow payment by importers, high inventories, and enterprises' cash flow shortage. Faced with such situation, businesses believe that in order for the industry to continue to be the growth engine of the economy in 2023, the government and ministries, branches and localities need to support them to remove difficulties in the economic development process and product consumption such as strengthening trade promotion activities, seeking and expanding export markets, supporting tax and export fees, and stimulating domestic demands.

Reported by Tieu My – Translated by Vi Bao