Overflowing orders

These days, all four garment production lines with over 1,000 workers at Khatoco's garment factory are busy completing fashion products for domestic and international customers. This is something that Tran Minh Quang, in charge of the Khatoco Board of Members, found hard to imagine over the past three years.

Quang revealed that not only the garment sector but all business sectors of the company have recovered well and are gradually shifting towards green production in line with global trends.

The garment industry has experienced an extremely challenging period, with production activities almost "frozen" at times and orders plummeting. Post-Covid-19, global inflation and geopolitical conflicts led consumers to cut spending, severely affecting the garment industry, which faced a lack of orders.

However, since the beginning of this year, the market has recovered, and processing prices have increased, boosting the company's business activities. In just six months, the company has achieved 66% of its annual target. Notably, in the export segment, the market has recovered strongly, and orders are increasingly abundant.

Khatoco has secured orders guaranteed to sustain production activities until Q1/2025, with processing prices increasing by 5-10% compared to the beginning of this year.

"We are continuing to negotiate new contracts and build a high-end fashion brand associated with Nha Trang Bay. The goal is to transform Nha Trang into a future fashion city," he says.

The Khatoco representative believes that challenges and difficulties are constant, but the key is to seize opportunities for recovery and return to growth. For example, due to changing consumer trends, the company has shifted from low-priced products to focusing on high-quality, higher-priced items.

"It sounds paradoxical. However, when people tighten their spending, they look for and buy high-quality, durable products. Therefore, high-quality products priced at 400,000-500,000 VND sell better than those in the 100,000-200,000 VND range," he shares.

Recovery of tourism

Khatoco's story is a vivid example of Khanh Hoa province's impressive economic recovery recently. In tourism, the influx of tourists has been significant. Tran Minh Duc, Director of Long Phu Tourism Joint Stock Company, proudly says, "Tourist numbers have increased significantly!" He notes that last year saw strong growth in tourists, and in the first six months of this year, tourist numbers increased by approximately 16% compared to the same period last year.

Talking to VietNamNet reporters on Hoa Lan Island in Ninh Phu (Ninh Hoa, Khanh Hoa) – where the company operates an eco-tourism zone, Duc introduces it as a green, nature-friendly tourism type that tends to be selective for visitors. However, the island attracts 800-1,000 visitors daily.

"Not only has it recovered, but the trend of tourists visiting Hoa Lan Island has also increased annually, with a significant number of international tourists from South Korea, Russia, etc.," he says.

Nguyen Thi Le Thanh, Director of the Khanh Hoa Department of Tourism, reports that the number of overnight stays in the first half of this year nearly reached 5.2 million, up 88% compared to the same period last year. Domestic tourists reached an estimated 2.8 million, up 40%, while international tourists reached nearly 2.4 million, 3.2 times higher than the same period in 2023. Revenue exceeded 26,072 billion VND ($1.03 billion), up 97% compared to last year.

With the advantage of beach tourism, Khanh Hoa expects to attract a large number of tourists for summer holidays, aiming to reach the target of 9 million overnight tourists in 2024.

Returning to the race after two years of decline

Previously affected by the Covid-19 pandemic, Khanh Hoa's economy recorded negative GRDP (Gross Regional Domestic Product) growth of -10.5% in 2020 and -5.58% in 2021. Thanks to flexible, proactive, and decisive measures, Khanh Hoa's GRDP recovered impressively, returning to a remarkable growth trajectory, frequently ranked among the top in the country.

In 2023, according to the General Statistics Office, Khanh Hoa achieved GRDP growth of 10.35%, ranking fourth nationally. In the first six months of this year, the province's GRDP increased by an estimated 12.73% compared to the same period last year, ranking second nationally with impressive figures.

Specifically, the industrial production index increased by 46%; total retail sales of goods and services reached about 62,585 billion VND, up 15.2%; tourism revenue nearly doubled compared to the same period last year; international tourists staying in Khanh Hoa increased by 3.3 times; the province's export turnover for six months is expected to exceed 1 billion USD, up 17%.

Chau Ngo Anh Nhan, Director of the Khanh Hoa Department of Planning and Investment, shares: "After Covid-19 pandemic, everything in Khanh Hoa, especially in Nha Trang, changed. Domestic tourists are fewer than before the pandemic, but the income from the service sector is higher. South Korean tourists come in large numbers, with good spending levels and civilized behavior."

"The inauguration of the final section of the Cam Lam - Vinh Hao Expressway connecting the Ho Chi Minh City - Nha Trang expressway, reducing travel time to just 4.5 hours, has helped Khanh Hoa attract more visitors," he adds.

Moreover, the Incheon (South Korea) - Cam Ranh (Khanh Hoa) flight route with more than 20 daily flights not only attracts South Korean tourists but also American tourists, as Incheon is a major international transit point.

Balancing the economy

However, in the transition process in thinking and action, Khanh Hoa has long neglected the proper focus on industrial development.

Nhan points out that with beautiful beaches and favorable climate, Khanh Hoa focused on developing tourism, leading to an explosion in tourism with the highest number of five-star hotel rooms nationally. While this was beneficial, it also posed risks.

When the Covid-19 pandemic hit, the local economy became unstable due to imbalances. Tourism was impacted by external fluctuations, and the province exploited other industries capable of offsetting the decline in tourist numbers.

Reflecting on this lesson, Khanh Hoa's leaders realized the need to balance the economy. Tourism remains a key sector but requires additional unique products. Specifically, the province aims to attract investment in culture, healthcare, and specialized treatment, allowing tourists to enjoy not only vacations but also wellness and aesthetic services. With many high-quality services, tourism quality will improve and become more sustainable.

Regarding culture, the province is investing in a sports center on Vo Nguyen Giap Boulevard to attract major international events. Additionally, investments in museums and cultural-social platforms aim to create more recreational opportunities for tourists, who currently mainly come to Khanh Hoa for "resting and beach activities."

In industry, Nhan notes that according to the provincial plan, Van Phong will have 8-10 large industrial zones, mainly concentrated in South Van Phong - Ninh Hoa; Cam Ranh will have two industrial zones. Industrial growth will provide a foundation for economic development in Khanh Hoa, rather than relying solely on tourism. The Van Phong 1 thermal power plant, which began operations last year, also significantly contributed to the province's industrial production index.

Furthermore, in 2023, the province approved and adjusted 37 projects with a total investment of about 150,000 billion VND ($5.91 billion). In the first six months of 2024, Khanh Hoa approved and adjusted 17 projects with a total investment of about 13,000 billion VND. This further drives GRDP growth in Khanh Hoa. Revoking delayed projects has also expedited the completion of ongoing projects, enhancing effectiveness and meeting the rising wave of tourism.

In response to the Net Zero trend, Khanh Hoa aims to attract green industrial zones from the outset.

"We also aim to accompany businesses in trade promotion and business agreements. During recent investment promotion trips to the USA, Japan, and South Korea, industrial zone investors also participated to showcase their advantages," the official of the Khanh Hoa Department of Planning and Investment shares, expressing hope that in the next two years, Khanh Hoa will experience strong industrial development, creating more balanced economic growth.

Reflecting on the company's green-oriented activities, Khatoco representative notes: "The company is flexible in production, actively seeking and developing new markets to balance and reduce reliance on traditional markets. Especially with the global shift towards green and sustainable practices, the company has greened its production processes by investing in modern technology and machinery, prioritizing green energy, and operating a centralized wastewater treatment system."

The company has also greened its input materials. Besides natural-origin products like bamboo fiber, cotton fiber, and wood pulp fiber fabrics, the company has recently pioneered products made from lotus fiber, mint fiber, and coffee fiber fabrics. Currently, the EU and the USA require carbon footprint certifications for imported goods. Therefore, businesses exporting to these markets must adhere to new "rules of the game." Khatoco has completed green energy certification and is working on carbon credits to meet international standards.

"The company is committed to maintaining a balance between economic development and environmental sustainability, ensuring that its growth is sustainable and responsible," Quang states.

Tam An - Xuan Ngoc - Hien Anh