January 22, according to the Vietnamese media:
Orders are back, but not so good...
This difficult situation is expected to continue until the end of the first quarter of 2024.
However, there are many positive signals in both the textile and footwear markets.
For the leather and footwear industry, the number of orders started to increase again from the end of 2023, with an average increase of about 20-25%. Firms expect a gradual recovery and a significant increase in the number of orders in the first months of 2024, ensuring employment stability for workers after a long period of production cuts.
It is worth noting that in order to compensate for the decline in orders in traditional markets, leather and footwear companies have been actively seeking opportunities in niche markets such as the Middle East, Asia and Africa. Evidence of this is the fact that growth in Asia has reached over 10%, while the US, China and Japan remain the largest import markets for leather and footwear.
Orders have picked up but do not reflect the overall picture
In the textile and apparel sector, corporate announcements showed a pickup in orders.A representative of Thanh Cong Textile and Clothing Investment and Trading Joint Stock Company (TCM) said that the company has now received about 90% of its planned revenue from orders for the first quarter of 2024.
Therefore, after experiencing a year-on-year decline in revenue and profit of 25% and 29% respectively in the 11 months of 2023, the fulfillment of export production orders in the first quarter is considered positive under the current circumstances.
Similarly, Viet Thang Jean Company (VitaJean) recently received an order to export 1 million products to the European market. The head of the business sees this as a positive sign for the start of 2024, following the business experiencing negative growth in 2023, when revenues declined by 20% compared to the previous year.
Although orders have picked up, they still do not reflect the overall situation of current textile and garment exporters.
The head of a Ho Chi Minh City-based enterprise specializing in exporting garment products to the US and EU markets recently told the media that orders are still very weak compared to previous months, without any positive signs. As a result, more than 40 percent of the enterprise's employees who lost their jobs in the past year still have no chance to return to the company's factories.
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