Business Business

10/09/2021 - 08:12

Raw materials stockpiled to maintain production

Facing complicated developments of the COVID-19 pandemic, in addition to the “3-in-1 place” plan, businesses in Hue also consider stockpiling raw materials to maintain production.

To maintain production, businesses must store raw materials. Photo: Trung Phan

Hardship upon hardship

As the COVID-19 pandemic is still ravaging, many businesses are in trouble, especially export businesses. Back in 2020, when the pandemic first broke out, many textile factories have had a hard time completing orders due to lack of raw materials and difficulties in circulation of goods.

At that time, many businesses had to shift orders, shift market and even products. Phu Hoa An TextileGarment Joint Stock Company had gained profits switching to producing medical masks, which helped the production process to remain smooth, maintaining jobs for the workers.

Currently, as the pandemic is lasting much longer, Phu Hoa An Textile Garment Joint Stock Company maintains its operation by actively stabilizing production with key orders. The company focuses on producing and delivering products to fully complete orders, ensuring quality and time, building trust with customers; hence, the company's orders are guaranteed until the end of 2021.

However, hard times are still ahead, as transportation and goods flow are the current problems that thebusiness are facing.

“The company's current export orders are stable, but the import and export costs have increased many times, ships carrying imported raw materials and accessories are often delayed from 5-10 days…those are the immediate difficulties that the companies must overcome,” Director of Phu Hoa An TextileGarment Joint Stock Company – Mr. Le Hong Long said.

From the reserve of raw materials, many businesses maintain production

In the context of the pandemic, stabilizing and maintaining production is especially crucial for businesses, while at the same time, the pandemic’s prevention and control are even more important. COVID-19 is still lingering, which means businesses have to always be on high alert, prioritizing safety is above all. However, executing the “3-in-1 place” plan shows many difficulties for many businesses.

A business leader shared that they were facing difficulties implementing the “3-in-1 place” plan due to increased costs as manufacturing factories have never arranged accommodation for workers before.

In addition, new problems are now arising such as providing meals for workers, security and order, and when living habits change, workers' psychology also changes, especially female workers...

During the pandemic season, as the highest safety measure, vehicles and people are currently strictly supervised. Accordingly, along with other activities, businesses’ production and circulation of goods also face with difficulties.

“Our export markets are mainly Europe and the US, while input materials are imported from China and southern provinces and cities. The pandemic makes it difficult to travel. The replacement of production materials also has to wait for a long time. Due to limited inputs, our production capacity is now reduced. Some items have been invested in, but as the output market has unexpectedly slowed down, orders are also currently suspended,” said Le Duong Huy, Director of Thua Thien Hue Wood Processing Joint Stock Company.

Efforts to maintain production

Two important factors in the production process of enterprises are the source of input materials and the market for outputs. There will be certainly many corollaries following the pandemic; thus, proactively adapting and finding ways to maintain production are options that many businesses opted for, in which taking the initiative in production materials plays an important role.

The Director of Hue Textile Garment Joint Stock Company said that in order to maintain production in a time when the circulation of goods is tight, especially since the pandemic has yet to show any signs of stopping, the company has stockpiled enough raw materials for the next 6 months.

In the face of the current difficulties, along with production, pandemic prevention is still a top priority. “With raw material reserves, we try to maintain temporary stability. Plans on expansion of scale or market are shelved. Now, aside from production, protecting the health of workers is our top priority,” said Mr. Le Duong Huy, Director of Thua Thien Hue Wood Processing Joint Stock Company.

According to Mr. Le Hong Long, in order to coexist with the pandemic while stabilizing production, the effective measure is to vaccinate employees who regularly come into contact with customers, delivery staff, and, after all, all factory workers. If possible, the company are willing to share funds to have a source of vaccines for its employees. 

“We have imported materials beforehand, and rented more warehouses to storage. For materials made in Ho Chi Minh City and Binh Duong, we have worked with customers on switching their productionsto Hue and Da Nang to be proactive in terms of time. Regarding the company's orders, as they have been placed by customers until the end of 2021, if the province succeeds in controlling the pandemic, the company can stabilize production to ensure income for employees until the end of the year,” Mr. Long shared.

Director of the Department of Industry and Trade, Mr. Nguyen Thanh informed: “Through inspection, we can see that companies have stockpiled raw materials to ensure production needs. In the long term, in order to stabilize the source of supplies, the province is calling for investment in supporting industries, especially for the textile, garment and footwear industries. Currently, Phong Dien Industrial Park has a zone for supporting industries, but due to the impact of COVID-19, investment attraction is limited.”

Story and photos: Le Tho