Vietnam’s textile and garment sector came a long way of hard work to get in the big leads. Going from VNĐ12.35 trillion to VNĐ54.14 trillion in the year 2010 to 2020, the total revenue of Vietnamese textile and garment industry increased four times. However, the start of 2020 has almost put them right back to where they started from when the incoming orders were cancelled.
Vietnam Garment Corporation (VGG) recorded a sharp decline in net profit by 65 per cent in 2020 to VNĐ143 billion (US$6.2 million), the lowest profit rate in the last 10 years. It is all due to the COVID-19 pandemic. As the main markets of the world such as Japan, the US and the EU got the worst hit. Nevertheless, recovery is in process as The Vietnam Textile and Apparel Association (VITAS) speculates that the revenue can be reach to 2019 levels $39 billion.
However, looking at the revenue decline caused by Covid-19 on a global level then Vietnam’s reduction rate was very low. An export decrease of 15-20 percent was witnessed worldwide.
Due to the new free trade agreements, the Ministry of Industry and Trade speculates that the textile and garment industry will get a high boost and a chance to boost back through the exports that are now amplified to big markets around the world, especially the high end brands.
In 2021, Vietnam will also adapt to the new digital communication business practices around the world such as the trend of the falling prices, online business models. Moreover, new focus will be on supplementing, training and developing high-quality human resources, connecting chains in member enterprises and increasing the performance of subsidiaries.
