Tuesday, 31/03/2009 11:31

Large textile firms to give smaller ones a helping hand

Even as small textile and garment companies struggle to find orders and avoid lay-offs, there is some good news: larger companies are planning to share their export orders with them.

The director of a garment company, who did not wish to be named, said a new contract for 10,000 sets of sports apparel can only provide her factory work until the end of next month.

A slump in orders this year has forced the company to lay off around 200 workers, or half of its labor force, already, she added.

On the other hand, large companies with labor forces of several thousands, such as Garmex Saigon, Nha Be, Saigon 3, Hoa Tho and Viet Tien, have enough orders to last until the second half of this year.

Pham Phu Cuong, deputy general director of Nha Be Corporation, said his company has contracts even for October production, adding monthly export value would be around US$10- 12 million.

Pham Xuan Hong, chairman of Saigon 3 Garment Company, said sharing orders is feasible if customers agree.

The Vietnam National Textile and Garment Group (Vinatex) and the Vietnam Textile and Apparel Association (Vitas) have drafted a plan under which Vinatex’s large members will share their orders with small and medium firms.

Le Tien Truong, Vinatex’s deputy general director, said its Hanoi-based Garment 10 Company would support firms in northern cities and provinces like Hai Phong, Quang Binh and Thai Binh and another member in Hanoi, Duc Giang Garment, would support smaller firms in the capital and Thai Binh Province.

Ho Chi Minh City-based Nha Be Corporation would share its export orders with apparel companies in the central provinces of Binh Dinh and Quang Ngai, Truong said.

Vinatex members would consider the smaller firms’ capabilities when they share the orders, he assured.

They would also supervise production to ensure quality and deadlines, he said.

In return, he said the companies “have to promise they will not lure large companies’ clients by offering lower prices.”

 Tuoi Tre, thanhnien

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