On January 20, according to media reports: At the end of the year, thousands of workers at Vietnam Viet Tien Joint Stock Company (HCMC) were operating at full capacity, working overtime to produce fashion orders from partners to prepare for the middle of the year. The biggest holiday – the Chinese New Year.
This company has more than 20 factories
More than 31,000 employees
Orders have been scheduled until June 2024
CEO Mr. Ngo Thanh Phat said that the company currently has more than 20 factories across the country and employs more than 31,000 people.
“At present, the company’s orders until June 2024 are very sufficient, and workers are not worried about the lack of work. The company is also working hard to secure orders for the last six months of this year. Only in this way can the work and life of workers be guaranteed.”
Mr. Phat said, adding that the company takes orders with low processing costs and slim profits to even break even to maintain its customer base and create jobs for workers. Stable income and employment for employees are the primary goals of enterprises.
Viet Tien also recruited 1,000 workers to work in Ho Chi Minh City.
Established in 1975, Viet Tien is one of the leading brands in Vietnam’s apparel industry. The company, headquartered in Xinping District, is the owner of many famous fashion brands and a partner of many large international brands, such as Nike, Skechers, Converse, Uniqlo, etc.
Red Sea Tensions:
The exports of Vietnamese textile and footwear companies are affected
On January 19, according to the Vietnam News Agency: The Vietnam Textile and Apparel Association (VITAS) and the Vietnam Leather, Footwear and Handbags Association (LEFASO) revealed: span>
So far, tensions in the Red Sea have not affected textile and footwear companies. Because most companies produce and accept orders on a FOB (free on board) basis.
In addition, the company is currently accepting orders through the end of the first quarter of 2024. But in the long term, if tensions in the Red Sea continue to increase, new textile and footwear orders will be affected from the second quarter of 2024.
Ms. Phan Thi Thanh, Vice Chairman of the Vietnam Leather Footwear and Handbags Association, said that tensions in the Red Sea directly affect shipping routes, various shipping companies, and direct importers and exporters.
For leather shoe companies that accept orders through FOB trade, the subsequent shipping costs will be borne by the ordering party, and the exporting company only needs to ship the products to the port of the exporting country.
Currently, Vietnamese textile and leather shoe export companies have accepted orders that will last until the end of the first quarter of 2024. Therefore, they are not immediately affected by tensions in the Red Sea.
Mr. Tran Thanh Hai, Deputy Director of the Import and Export Bureau of the Ministry of Industry and Trade of Vietnam, pointed out that all companies must pay close attention to how the evolution of the world situation affects the transportation and logistics activities of export goods, aiming to allow companies to make appropriate plans for each stage. response plans and measures to minimize losses.
Experts and representatives of various associations believe that the unstable situation in maritime shipping activities will only occur in the short term, because major countries have taken measures to solve the instability problem, and the tension will not last long. Therefore, companies do not need to worry too much.