HomeInternational Business Pages

Vietnam National Textile and Garment Group analyzes Yarn Production and Demand

Overview of the Conference

Overview of the Conference

On December 6, in Thua Thien Hue, Vietnam National Textile and Garment Group (Vinatex) held a summary of activities of the Yarn Production and Business Committee in 2021. Attending the conference were Vinatex Chairman Le Tien Truong; Vinatex General Director Cao Huu Hieu; members of the Board of Directors, the Executive Committee of the Group and units of the Group’s yarn production and business system.

Efficiency in operation

Mr. Nguyen Duc Tri - Head of Yarn Production

Mr. Nguyen Duc Tri – Head of Yarn Production and Business Department shared about the Board’s successes in 2021

Speaking at the opening of the Conference, Mr. Nguyen Duc Tri – Deputy General Director of Vinatex, Chairman of the Board of Directors of Hoa Tho Textile and Garment Joint Stock Corporation, Head of Yarn Production and Business Department shared the joy, as well as the initial successes of the Board and 11 production units. yarn production with the dominant capital of Vinatex. Accordingly, in 2021, yarn enterprises have faced many difficulties due to complicated developments of the Covid-19 epidemic in the country and the world. In addition to the difficulties and challenges, yarn players also had better market opportunities for cotton, fiber and yarn in the past 11 months, which recorded selling price, yarn demand and profit per kg. yarn increased sharply compared to the same period in 2020, with profit of units reaching about 10%/revenue. The favorable market conditions have helped the yarn units to boom high profits for the whole of 2021 and can be said to be the highest in 10 years since the crisis in 2010-2011.

In which, the market group has maintained a channel to exchange market information on prices of cotton, fiber and yarn materials and daily market movements. Regularly update weekly and monthly market reports on the market situation of cotton, fiber and yarn materials to share with member units of the Yarn industry. Orienting the optimal inventory limit in accordance with the production situation of each factory and taking into account the timely response to the situation of logistics crisis…

The equipment group has compiled a list of equipment in yarn units and made initial comments and assessments on investment orientation. Synthesized the investment project portfolio of the units and participated in the preliminary appraisal of investment projects such as: 3.7 thousand piles of Nam Dinh Textile and Garment, 3,45 thousand piles of Vinatex Nam Dinh 2.

The production team has compiled statistics on the output and quality of products produced at the yarn units and made initial comments and assessments. Maintain contact and exchange experiences in production management in units, especially units such as Hue Textile and Garment and Nam Dinh Textile and Garment.

Mr. Nguyen Ngoc Binh - Deputy Head of Yarn Production

Mr. Nguyen Ngoc Binh – Deputy Head of Yarn Production and Trade Department commented on the strategy of the Board in 2022

Reporting at the Conference, Mr. Nguyen Ngoc Binh – Deputy General Director of Hoa Tho Textile and Garment Corporation, Deputy Head of Yarn Production and Business Department said: In the last months of 2021, it is a good sign that the yarn market still maintains demand and selling prices for the last months of 2021 to the first quarter of 2022. This shows that in 2022, the yarn market, although the demand has improved, will continue to face many difficulties and uncertainties due to unforeseen fluctuations of the new variant of the covid pandemic, the logistics crisis still remains. prolonged, affecting the world market of cotton, fiber and yarn materials…

With the assessment of difficulties, challenges and opportunities, the Yarn Production and Business Board proposed solutions to perform specific tasks for each Working Group. In which, the main solutions are focused: Continuing to maintain and promote the exchange of market information on prices of cotton and fiber materials, market developments, and updating relevant market reports. members; Timely informing members of cases where cotton, fiber and yarn trading partners fail to fulfill their contractual commitments, deliver poor quality goods, are unwilling to settle complaints when there is a dispute, have commercial fraud… for units to capture information to avoid risks in buying/selling transactions; Share orders and customers between units in case the items/customers are not suitable for your unit, to guide customers to use yarn in Vinatex’s yarn system; Find out and share information about new items that may not have been produced before such as recycled yarn, recycled yarn/organic cotton… but have been requested by customers and the market so that the units can research research and trial production if arranged to be produced at the factory in order to contribute to increasing the value of yarn products in the Vinatex system; Implement analysis and evaluation of statistical data on production technical criteria, organizational structure and plant operation system based on data provided by units; Develop a form to summarize the list of main spinning equipment, products and actual production capacity to send to member factories to update data; Grouping equipment of the same type at member units, building technical and technological support programs,

Before the current situation of Vietnam’s yarn industry: production capacity is still small compared to countries such as Indonesia, Bangladesh, and Pakistan. Vietnam currently has 10 million piles, of which FDI: 65%, private sector: 25%, CP block with state capital 10%; Many factories have old, outdated technology equipment, many types, many different origins; Products that focus on producing traditional yarns with medium cost, low added value, very few units producing different yarns…, Vinatex Yarn Production and Business Board proposed: Units are conducting research on project Investment projects from 2022 need to calculate, balance and choose a reasonable investment time in order to minimize the risks of adverse fluctuations in machinery and equipment prices, equipment delivery time and raw material prices. escalation… Research and invest in manufacturing different products and products with high added value. Prioritize investment in additional depth,

Linking to strengthen the supply chain system

Mr. Le Tien Truong - Chairman of the Board of Directors of Vinatex

Mr. Le Tien Truong – Chairman of the Board of Directors of Vinatex highly appreciates the work that the Board has done even though it has only been established for more than 1 year.

Speaking at the closing ceremony, Mr. Le Tien Truong – Chairman of Vinatex’s Board of Directors said that this is the first time the Group has had an industry review activity, which is in the direction of the Board of Directors in the period of 2020 -2025. Accordingly, the Board of Directors has set out during the tenure to link vertical industries in the Group’s system in order to create a supply chain strong enough to compete in the market. With the garment industry, Vinatex has had 20 years of outstanding development with many technical advances and has a foothold with partners around the world. As for the Yarn industry, so far, the development level of the units in the Group’s system is different, there is also a “latency” compared to the market requirements, which creates a drag in creating supply chain system, so the re-linking of units in the Yarn system will help upgrade the level of technology, management level,

Sharing about the process of building the Yarn Production and Business Board in 2020, the Chairman of Vinatex said that the establishment of the Board is the direction that the Board of Directors and Vinatex Management Authority set out to develop a strategy for the Yarn industry, in order to help the system of The yarn factory of 11 dominant Vinatex units has a clear strategic direction, a modern management method and above all forms an association to “fight” with the fierce market, not units in Vinatex compete with each other.

Appreciating the Yarn Production and Business Department, which has contributed a lot of content to the development of the Yarn industry in the Group within more than 1 year after its establishment, Mr. Le Tien Truong emphasized: The Board has established a system of criteria for assessment, monitoring and comparison between enterprises in an open, transparent and easy way to compare, as well as offering “prompt” plans to solve outstanding problems; Along with that, for the first time in the system, enterprises in the system have a common vision and approach, which are: high automation, saving energy, labor and resources… towards green production; Since then, bringing businesses closer together and sitting on the same boat, this has “pull” weak businesses to progress and go up; In addition, the Board has initially represented businesses to negotiate with suppliers, looking for big customers.

Mr. Cao Huu Hieu - General Director of Vinatex

Mr. Cao Huu Hieu – General Director of Vinatex congratulated the Board on the successes in 2021

On behalf of the Executive Agency in operating and directing the Yarn Production and Business Board, Mr. Cao Huu Hieu – General Director of Vinatex praised and congratulated the success of the Board and 11 yarn production units in terms of business results in 2021. According to General Director of Vinatex, despite being affected by the epidemic, many localities have been separated for a long time, logistics costs have increased… However, the production and business results are very impressive, far exceeding all predictions as well as the proposed plan. out. “The Vinatex executive agency acknowledges the great efforts of the Yarn Production and Business Department and the Group’s yarn enterprises for having closely and comprehensively directed, from market work, production management, to in-depth investment of the company. units in the system. In particular, the Board has also become a bridge connecting member units with the yarn industry in the Group. The Board has operated well the construction and maintenance of a market exchange information channel between the units, help the unit make quick decisions, timely seize business opportunities, maximize profits. In addition, the Board advised the unit on equipment investment and production management, helping to improve the productivity of the Yarn industry. This is the factor that creates the outstanding success of Vinatex Yarn industry in 2021”, emphasized Mr. Cao Huu Hieu.

General Director of Vinatex awarded the certificate of merit

On behalf of the executive authority, the General Director of Vinatex awarded the certificate of merit to the Board for its contributions to the Group’s Yarn industry in 2021.

On this occasion, the Yarn Production and Business Department received the Certificate of Merit from the General Director of Vietnam Textile and Garment Group for making many contributions to the efficiency of the Group’s production and business activities, revenue and profit in 2021.

Share This