Vietnamese textile and garments exporter expanded exports posted 21 percent growth to $35 billion in the first nine months of 2022, as its exporters explored new markets like Russia and few new EU countries to compensate for low demand in traditional markets.
The proactive approach of the Vietnamese exporters was not limited to exploring new markets, but they also promoted new products in knitwear to offset low orders for traditional garments like Khakis, T-shirts, and jeans. In the first six months of the year, Vietnam’s textile and garment industry had a large number of orders and good business results said, Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (VITAS), but there was a visible decline in the third quarter in traditional markets of US, EU, China, and South Korea.
The export order reduced due to looming recession in major export markets like the US and the EU. To offset supply chain challenges due to covid-19 the Vietnamese businesses rearranged working hours to ensure stability for workers. Stakeholders in the textile and garment industry are optimistic to overcome the challenges in the fourth quarter, but see difficulties to continue until the first quarter of 2023.
Thanks to the recently concluded EU-Vietnam Free Trade Agreement (EVFTA) the growth chances for textile and garment industry will be brighter in the first quarter of 2023 because the export tariffs on some kinds of Vietnam’s textile and garment products to the EU market will be reduced by 2-4 percent.
