Vinatex and its member units are currently in tải w88 2024 Annual General Meeting season. As of now, most of tải w88 companies have concluded their Meetings. Although tải w88 majority did not achieve their expected business results in 2023, they have all agreed to set ambitious plans for 2024, demonstrating their determination to seize tải w88 opportunities of 2024 – tải w88 pivotal year of tải w88 2020-2025 term, to recover and regain losses in 2023.
tải w88 residual value after tải w88 effort to “overcome tải w88 market storm”
We have discussed tải w88 difficulties of 2023 extensively. tải w88 challenges were identified quite early on, but these impacts still took tải w88 enterprises by surprise, leaving them unprepared for unprecedented situations.
Continuous instability from global geopolitical conflicts, tải w88 unresolved Russia-Ukraine tension followed by tải w88 war between Israel and Hamas, conflict in tải w88 Red Sea, etc, has plunged tải w88 global economy into a prolonged crisis. This resulted in a more than 10% decrease in global demand for textiles and garments compared to 2022, with significant drops in purchasing power in major markets of Vietnam textile and garment industry. Low demand combined with extremely fierce price competition, as Vietnam’s interest rates are 2-3% higher than those of competing countries; tải w88 currencies of competitors depreciated significantly against tải w88 USD to boost exports, while tải w88 VND only depreciated by 5%. In addition, competition from China became increasingly intense as tải w88 Chinese government implemented numerous measures to support tải w88 textile-garment industry to recover after tải w88 pandemic.
In such a market situation, tải w88 global yarn industry has had a dismal year of losses. Vietnamese yarn enterprises’ selling prices were not enough to cover variable costs, and some companies have had to reduce production. tải w88 garment industry has seen a decrease in orders and prices of 30-50% compared to tải w88 previous year. Therefore, Vietnam’s textile and garment export turnover in 2023 reached only $39.6 billion, reduced by 11.3% compared to 2022 – this was tải w88 highest decline in 30 years of exporting, even during tải w88 Covid-19 pandemic or periods of regional or global economic crisis, textile and garment exports have never declined.
This Annual General Meeting Season is an opportunity for us to look back on tải w88 most challenging year in tải w88 Group’s history. Besides tải w88 damages to efficiency, alongside our efforts to fulfill tải w88 business plan, Vinatex and its member units – as a leading group in Vietnam’s textile-garment industry with over 60,000 employees – have always operated with a principle of balancing tải w88 interests between “employees, shareholders, and society.” tải w88 most significant achievements of 2023 include:
- Maintaining and stabilizing tải w88 workforce of nearly 62,000 people in Group 1 companies, reaching 97% compared to 2022, despite tải w88 difficult situation. To ensure employment for workers, and prioritize stabilizing tải w88 production force until tải w88 market recovers, businesses have to accept small orders with demanding technical requirements and tight delivery schedules at very low prices, reduce productivity, and not focus on efficiency. This demonstrates that Vinatex always prioritizes responsibility to society, and it is also an important strategy that enables tải w88 entire system to be ready to recover whenever favorable market signals emerge.
- tải w88 interests of workers are also taken care of. tải w88 average income across tải w88 Group reached VND 9.45 million/person/month, equivalent to 97.6% compared to 2022 and 94.9% compared to tải w88 2023 plan.
- Although tải w88 business results did not meet tải w88 plan, enterprises in tải w88 system always prioritize tải w88 interests of tải w88 shareholders. Most units paid dividends equal to or higher than expected, only a few companies have lower dividend rates than planned business, mainly yarn companies with loss-making business results.
- tải w88 difficult decisions of 2023 were all “brave” decisions of tải w88 managers with tải w88 highest positions tải w88 Chairmen/CEOs of tải w88 businesses. We cannot maintain tải w88 production force and tải w88 management team if there is no “bravery” from tải w88 business leaders.
Leveraging tải w88 opportunity of 2024 – To regain what was lost
Although it is predicted that tải w88 difficult phase is not yet over, 2024 has shown positive signs from tải w88 market, stemming from more optimistic forecasts for global economic growth, with some central banks of major countries planning to cut interest rates by 0.75 to 1% from mid-2024. tải w88 domestic economic situation is also more favorable than in 2023, with Q1 GDP growing by 5.66% compared to tải w88 same period and higher than tải w88 growth rate of Q1 from 2020-2023; tải w88 total estimated export revenue reached $178 billion, increased by 15.5% compared to tải w88 same period.
tải w88 textile and garment industry also sees some support factors as tải w88 textile and garment demand in 2024 is forecasted to reach $717 billion, an increase of 5.6% compared to 2023; inventory levels of major brands have decreased compared to tải w88 same period; tải w88 implementation of some regulations related to green and sustainable production has slowed down due to tải w88 global economy not yet fully recovered. In addition, tải w88 Vietnamese textile and garment industry also has tải w88 potential to access better market opportunities, with less competitive pressure as competing countries have almost exhausted to continue depreciating their currencies to support exports and are unable to maintain their exchange rate advantage as they did in 2022-2023. At tải w88 same time, Vietnam also has tải w88 opportunity to capture orders diverted from other countries due to political-social instability, tightening of forced labor regulations, etc.
These signs are also evident in tải w88 first four months of tải w88 year, with profuse garment orders, although tải w88 processing price is still at a low level; in tải w88 yarn industry, although tải w88 selling price is still unprofitable due to weak demand and large fluctuations in raw material prices, these have shown a clear improvement in efficiency. tải w88 export revenue of Vietnam’s textile industry in Q1/2024 reached 9.4 billion USD, grew 9.2% compared to tải w88 same period in 2023.
Thus, it can be predicted that market opportunities are approaching, as well as tải w88 usual pattern of forming growth waves after a prolonged downturn. We should not be overly optimistic but need thorough preparations to receive and take full advantage of tải w88 opportunities if these forecasts become reality.
In tải w88 spirit of seeking truth at tải w88 shareholders’ meetings of member units, we should take a frank look at shortcomings and potential weaknesses to determine appropriate direction. These include:
- Management practices are not flexible enough, not fully utilizing all resources to optimize efficiency as well as cope with tải w88 continuous fluctuations of tải w88 market.
- Low ability to diversify products, mainly focusing on basic and traditional products.
- Lack of proactive market activities, limiting tải w88 ability to expand tải w88 customer data.
- Productivity and quality are not optimized and unstable.
- Connection in tải w88 production chain within tải w88 Group’s system is low.
Direction and essential solutions
To control and improve tải w88 above shortcomings, tải w88 Group’s Executive Board has identified several key solutions that tải w88 entire system needs to focus on implementing in 2024:
- Effectively implementing tải w88 approved restructuring plan, reviewing inefficient investments, enhancing risk management, and thoroughly handling “hot spots”.
- Applying digital management across tải w88 whole system. Initially use tải w88 yarn management app for all yarn companies within tải w88 Group. Digital management will provide more flexibility in organizing production, meeting tải w88 continuous change requirements of customers, optimizing when producing small, fast-delivery orders
- Strengthening product R&D work, collaborating with research units, and technology partners, focusing on specialized products requiring high techniques to build tải w88 core products of tải w88 Group. For tải w88 units, improving tải w88 diversified product’s ability through research and application of technology, in-depth investment, and ensuring supervise to market requirements.
- Enhancing tải w88 role of tải w88 Business Production Departments in market development, obtaining orders that bring high efficiency, and focusing on reasonable coordination according to tải w88 advantages of each unit.
- Investing in key projects according to tải w88 approved strategy, in parallel with strengthening deep investment, prioritizing new technologies to increase productivity, reduce labor dependence, and reduce costs (electricity, energy…).
- Having a policy of using each other’s products among units in tải w88 Group, especially forming a closed production chain for some new specialty products like fire retardant fabrics, towels…, as a foundation for system-wide chain linkage in tải w88 future.
- Practically competing in good production- high productivity, saving, improving tải w88 working environment for workers, enhancing tải w88 efficiency of production and business, and meeting tải w88 increasingly high and diverse needs of customers. Ensuring employment, actively caring for tải w88 material and spiritual life of tải w88 workers…
Harmonized interests – Shared risks
2024 is tải w88 sprint year – tải w88 pivotal year of tải w88 2020-2025 plan period and also tải w88 foundation for tải w88 new 2025-2030 period. More than ever, Vinatex needs tải w88 understanding and cooperation of tải w88 units in tải w88 Group, all tải w88 employees and tải w88 shareholders.
It is necessary to share with employees about tải w88 difficulties that tải w88 enterprise is facing to have mutual agreement with tải w88 medium- and long-term development strategy with visible harmonious benefits. Only then will tải w88 employees be ready to shoulder tải w88 heavy tasks ahead, willing to reduce benefits in tải w88 short term to aim for long-term stability and sustainable development, ready to fully exploit tải w88 capabilities of individuals and tải w88 collective to get through this extremely important period.
For shareholders, we hope for trust in strategic decisions, support for short-term investment decisions, and sharing of tải w88 difficulties that Vinatex and its member units are striving to overcome, with tải w88 sole desire to ensure benefits for all parties: sustainable development of tải w88 enterprise – workers have a stable and increasingly improved living conditions – shareholders achieve optimal investment efficiency.
Vietnam Nation Textile and Garment Group believes that 2024 will create tải w88 momentum for enterprises to gradually overcome tải w88 prolonged difficult period, stabilize at a new level, ready for tải w88 development pace of tải w88 next stage. ” Calamity is man’s true touchstone “, tải w88 recent market wave can somehow be considered “positive” when it helped us detect and improve existing shortcomings, creating conditions for enterprises to mature and continue steadfastly on tải w88 challenging road ahead to achieve tải w88 strategic goals set out.
