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Wednesday, June 19, 2024

2024 to be unpredictable as well as risky – Vinatex Director

If 2023 was an unstable year due to various political and economic factors, 2024 is forecast to be unpredictable as well as risky.

According to Cao Huu Hieu, Director of Vietnam Textile and Garment Group (Vinatex), contrast in opinions of analysts shows that 2024 is a completely unpredictable year, with both, positive and negative reviews.

“The textile and garment sector in Vietnam exports 80 percent of its production, so the industry is directly and heavily influenced by the world’s economic, political and social situation,” Hieu stated.

Hieu added that the export industry should diversify to more non-traditional markets as well as focus on customer satisfaction as competition will increase in 2024 in global markets.

He further said that textile and garment enterprises need the ability to detect and anticipate trends like new product trends and then act decisively.

Le Tien Truong, Chairman of Vinatex said that the International Monetary Fund (IMF) has forecast that the Euro, British Pound, and Japanese Yen will all increase in value compared to the US dollar.

“In that context, it is unlikely that the Vietnamese Dong will have a strong tendency to depreciate compared to the US dollar,” Truong observed.

“With the level of business improvement seen in the fourth quarter of 2023 and the rapid reduction in retail inventory, there is hope for orders in the garment industry to return soon,” he added.

Vina Capital also said that Vietnamese textile and garment firms will still face weak demand from the US, which accounts for around 40 percent of exports from the sector, which will hinder recovery process.

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