On January 20, according to media reports: At the end of the year, thousands of workers at Viet Tien (Vietcong) Joint Stock Company (HCMC) are running at full capacity, working overtime to rush fashion orders from partners in preparation for the biggest holiday of the year – the Lunar New Year.

The company employs more than 31,000 people at more than 20 factories and has orders through June 2024

CEO Ngo Thanh Phat said the company currently has more than 20 factories across the country, employing more than 31,000 people.

“At the moment, companies’ order books are very full until June 2024 and workers are not worried about a lack of jobs. The company is also trying to secure orders for the last six months of this year, only in this way can it guarantee the jobs and livelihoods of workers.”

Mr Phat said, adding that the company takes orders, has low processing costs, thin margins and even breaks even to maintain its customer base and create jobs for workers. Stable income and employment of employees is the primary goal of enterprises.

Viet Tien has also recruited 1,000 workers to work in Ho Chi Minh City.

Founded in 1975, Viet Tien is one of the leading brands in Vietnam’s garment industry. Headquartered in Xinping District, the company is the owner of many famous fashion brands and the partner of many large international brands, such as Nike, Skechers, Converse, Uniqlo, etc.

Tensions in the Red Sea: Exports of Vietnamese textile and footwear companies are affected

On January 19, the Vietnamese Textile and Garment Association (VITAS) and the Vietnamese Leather Footwear and Handbag Association (LEFASO) revealed:

So far, the 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, companies are currently taking orders through the end of the first quarter of 2024. In the longer term, however, if tensions in the Red Sea continue to rise, new textile and footwear orders will be affected from the second quarter of 2024 onwards.

Ms. Phan Thi Thanh Choon, vice president of the Vietnam Leather Footwear and Handbag Association, said the tension in the Red Sea directly affects shipping routes, shipping companies and direct importers and exporters.

For the leather shoes companies that accept orders by FOB trade, the subsequent freight will be borne by the order party, and the export enterprises only need to ship the products to the port of the exporting country.

At present, Vietnamese textile and leather shoe exporters have accepted orders lasting until the end of the first quarter of 2024. Therefore, they will not immediately suffer from the tensions in the Red Sea.

Mr. Tran Ching Hai, Deputy Director of the Import and Export Department of the Ministry of Industry and Trade of Vietnam, pointed out that enterprises must pay close attention to how the evolution of the world situation affects the transportation of export goods and logistics activities, so that enterprises can develop appropriate countermeasures and measures for each stage, so as to minimize losses.

The experts and representatives of the associations expressed the view that the instability in maritime activities would only occur in the short term, since the major Powers had already taken steps to address the instability and the tension would not last long. So companies need not worry too much.

Source: Footwear professor, network