African investments can boost Vietnam' s textile and garment exports

Defying COVID-induced downturn, Vietnam’s textile and garment exports grew 22.5 per cent to $8.94 billion in Q1FY22. However, labor shortage impacted production and business activities during the pandemic, says Tran Troung Anh, Deputy General Director, Hoa Tho Textile and Garment JSC. Around 1,719 employees in her company tested positive for COVID-19, disrupting production plans.

Post return to work, the health of these employees remained poor, leading to low productivity. Hence, the company planned to reschedule delivery time, rearrange production plans and focus on urgent orders first, as per an EIN Presswire report. The company also arranged different workplaces and canteen for the infected.

Labor shortage lead to flexible work schedules

Covid infections forced many companies to change their strategy and introduce flexible schedules. For example, 8-3 Textile Co, which also faced labor shortage during the pandemic adopted a flexible work schedule by changing shifts and rotating workers. This enabled it to continue its production and business activities unhindered. Another manufacturer Aligro JSC prioritized garment orders as company mostly had seasonal fabrics with it, notes Hoàng V?n Linh, Chairman. The company also ensured workers’ safety by focusing on their social and welfare interests.

Hòa Th? Textile and Garment JSC encouraged infected workers to immediately seek treatment. It also supported them with finance and meals for two week post their recovery from the illness. The company stabilized production by changing shifts and rotating workers.

Vietnam seeks new growth partners

From a Zero COVID policy, Vietnam has shifted its focus to effective control of the pandemic and development of its economy. Textile and garment manufacturers in the country expect textiles and garments exports to reach $43 billion this year. They look to collaborate with new partners and leverage growth opportunities. One potential partner for Vietnam is Africa as of now. The continent offers multiple growth opportunities for Vietnamese fashion manufacturers, says Lê Hoàng Tài, Deputy Director, Vi?t Nam Trade Promotion Agency (Vietrade).

Low awareness hinders Vietnam-Africa trade

However, not many African brands are aware of Vietnamese fashion products, says Hoang Ta. To promote Vietnam’s fashion businesses, Vietrade recently organized a business matching webinar that was attended by 50 Vietnamese and African fashion manufacturers and traders. The seminar helped Vietnam seek new partners and step up exports to African markets

The Vietnam textile and garment industry has received many large orders from across the world. However, supply to the African market continues to be limited, notes Tai. With 55 countries and a population of over 1.2 billion people, Africa offers a huge business opportunity to Vietnam, points out Nguy?n Th? Tuy?t Mai, Deputy General Secretary, Vi?t Nam Textile and Apparel Association (VITAS).

Mai says, Vietnam’s implementation of zero-COVID policy and new FTAs also benefit African businesses. Abundant human resources, quick adaption to new technologies including digital transformation and circular economy makes the country an ideal investment destination for Africa. Mai therefore urges African fabric manufacturers to step up investments in Vietnam. Meanwhile, Vietnam also needs to increase cotton imports from Africa to enhance cooperation between the two countries.