Business Business

15/03/2022 - 08:14

Hue enterprises: Resources to meet export orders invested

After a year of many difficulties under the influence of the COVID-19 pandemic, at this time, the orders for the textile and garment industry are quite plentiful, and the enterprises are accelerating production to make the most of opportunities and seek more potential customers.

On account of many orders, Phu Hoa An Textile Garment Joint Stock Company is recruiting more than 1,000 workers to meet production capacity

A flood of orders

As an export textile garment manufacturing enterprise under Son Ha Group, at this time Son Ha Hue One Member Limited Liability Company has many advantages:  the COVID-19 pandemic in the world countries is under control, the anti-pandemic vaccination rate is high, and the people revert to production and business activities, so the number of orders increases dramatically. To date, the enterprise has received orders until the end of 2022 and is negotiating with the partners to sign new orders for 2023.

According to the company's leader, Mr. Le Van Khanh, unlike the quiet atmosphere, a shortage of orders in early 2021 when the world countries had to implement social distancing to prevent the pandemic, and fashion stores were forced to close, in early February 2022, textile and garment customers in the US and Europe continuously placed the export orders. Although only in mid-February 2022, the company received all the orders of the whole year. Many customers placed the orders in large quantities, but the company could not receive them because of the unsatisfied production resources and the worry over compensation for the contract due to slow delivery.

Son Ha Garment Factory also offers the remuneration package to recruit nearly 600 workers for meeting export orders

In order to increase capacity and meet export orders of partners, the enterprise is finalizing the procedures in preparation for investment in the construction of 2 factories in Phu Da Industrial Zone with a capacity of 45 garment production lines and a total investment of about 300 billion dong. Concurrently, the investment in modern machinery and equipment for factory 1 is made to increase productivity, reduce labor, and meet the signed orders.

In the industrial zones such as Phu Bai, Phong Dien, Phu Da..., since early 2022, many enterprises have invested in building factories, expanding production scale to meet export orders. Currently, the projects such as the medical glove factory of Kanglongda Company, textile factories of Scavi Hue Company, Thien An Phu Textile and Garment Joint Stock Company, Chan May quartz processing factory, the project of producing current transformers... are accelerating the progress to soon finalize and put into operation, contributing to the industry capacity increase  in the coming time.

According to the leader of Phu Hoa An Textile Garment Joint Stock Company, with the number of orders in 2022 up over 20% against 2021, up to this time the company has received the orders until the end of 2022. The company has just put into operation the garment factory 2 with a capacity of 48 garment production lines and a total investment of 150 billion dong.

According to Deputy General Director of the Company, Mr. Hunan Nhat, because the enterprises in the south, which have not yet called for workers to return to work after the COVID-19 pandemic, are currently producing in moderation, the partners shift the orders to Hue.

After receiving the orders from garment factories in the south, the enterprise is subsidized by 15-20% against the price that the enterprise directly signed with partners, so the unit is recruiting 1,000 more workers, implementing several remuneration policies in order to attract workers, increase resources to meet orders.

Difficult to recruit workers

According to the statistics, so far 100% of textile and garment enterprises have received enough export orders in the first quarter of 2022; about 50% of enterprises have signed contracts by the end of the second and third quarters of 2022, and more than 30% of enterprises have got orders until the end of 2022. Enterprises prepare raw materials, recruit more workers, invest in machinery and equipment and adopt the anti-COVID-19 measures to stabilize production. Some enterprises share orders for factories, creating cohesion and maintaining the production and business activities.

Orders are in a great quantity; the supply chain of raw and auxiliary materials for production is stable when the Government "relaxes" measures against the COVID-19 pandemic, the convenient transportation of goods helps enterprises stabilize production and business. However, currently, some enterprises in the province do not dare to expand their workshops and receive more orders because worker recruitment faces many difficulties. Many workers from the southern provinces, who went back to their hometown to "avoid the pandemic" and worked in Hue industrial zones, now quit the job to return to the south because those enterprises offers the attractive remuneration package.

According to Mr. Le Van Khanh, in late 2021, the enterprise received more than 300 workers from the southern provinces back to Hue to avoid the pandemic. After the Lunar New Year 2022, these workers returned to work at garment factories in the south, so the enterprise is currently facing a severe shortage of labor resources.

The surveys at enterprises show that there is currently no shortage of textile and garment orders, but many enterprises do not dare to accept orders because they are not proactive in production due to a shortage of labor and production capacity. Additionally, the COVID-19 pandemic remains complicated, sometimes with COVID 19-positive workers, disrupting production lines.

According to the statistics of the Department of Labor, War Invalids and Social Affairs, in early 2022, there are quite a few enterprises announcing the recruitment of workers, 41 of which need to recruit more than 9,000 people. Accordingly, many businesses recruit a large number of workers in Hue such as Scavi Quang Vinh recruiting 2,000 workers, Vinatex International Joint Stock Company, Hue branch recruiting 1,340 workers, etc.

Along with labor recruitment, the proactivity in source of raw materials is also a fundamental and long-term solution for textile and garment enterprises. Because, from the reality of the supply chain disruption of the textile and garment industry over the past 2 years of the COVID-19 pandemic, the enterprises realize that the proactivity in domestic raw materials is the key to more sustainable development amid the persisting COVID-19 pandemic.

Story and photos: Thanh Huong