While Vietnam’s textile-garment sector is working hard to meet its export target of $39-40 billion this year, its garment export revenue in 2023 first half dropped by 17.6 per cent year on year to $18.6 billion.
The country has set an ambitious export target of $39-40 billion this year, according to the Vietnam Textile and Apparel Association (VITAS). Its export to the Us declined by 27.1 percent in the first five month of this year. The exports to the European Union declined by 10.9 percent during this period while exports to Canada dipped by 6.2 percent. Experts attribute this decline to global slowdown.
But besides global recession the Vietnamese textile exporters are also facing stiff competition from China. While lending rates ranging between 9 per cent and 11 per cent have further raised production costs compared to competitors.
The average monthly wage for textile workers in Vietnam of around $300, is more than three times higher than Bangladesh’s $95, more than two times the wages of $145 that Indian textile workers get and considerably higher than Cambodia’s $190.
Global textile demand is projected to fall from $757 billion to around $712 billion, and it could potentially reach as low as $687 billion. In addition the growing pressure to adopt more sustainable production practices demands additional efforts and cost from Vietnamese exporters to secure new orders.
The VITAS has emphasised to support the country’s textile and garment industry in achieving its ambitious export target include retaining skilled personnel, investing in employee upskilling, fostering customer loyalty and optimising business expenses.
Garment exports from Vietnam declined by over 17 percent in first six months of 2023
