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Friday, February 23, 2024

Textile and clothing exports from Vietnam likely to decline by 10 percent this year

Vietnam Cotton and Spinning Association (VCOSA) forecasts that textile export value for this year will be approximately 10 percent down from $44 billion last year to $40 billion. The association however termed the decline in line global trend in textiles trade.

Vietnam’s apparel exports in October’23 declined marginally by 0.1 percent  to $2.57 billion compared with exports achieved during the same month last year according to Vietnam Cotton and Spinning Association (VCOSA).

Duong Thuy Linh, the Deputy General Secretary of VCOSA told the media that the declining trends were not unique to the garment and textile industry of Vietnam. He said decline in worldwide demand was triggered by geopolitical tensions, high inflation in major buying countries and the implementation of tighter monetary policies in several countries. These factors compelled global consumers to curtail their spending habits.

At the same time, the Vietnamese textile industry faced increasing challenges as sustainability standards became more rigorous, and competition intensified from countries like Bangladesh and Myanmar. As a result, the textile companies encountered a decrease in both the number and size of orders.

Deputy General Secretary of VCOSA noted that many textile enterprises had to scale down production to 50-80 per cent from the end of the preceding year until the second quarter of the current year. Fortunately, he added a modest recovery began in July, with most producers returning to full production capacity.

Despite this recovery, VCOSA anticipates persistent challenges for Vietnam’s garment and textile sector due to sustained low consumption demand throughout 2024.  

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