Vietnam’s apparel industry is facing gloom in the second half of 2022. The orders have declined impacting the job security of workers. Still, entrepreneurs are going for innovations to boost production to achieve export revenue targets of $44 billion.
The textile industry is not much behind as export revenue of the textile and garment industry reached about $38 in the first 10 months of 2022. Going forward the industry was hard-pressed because of high inflation and high inventories in export markets catered by the Vietnam textile and apparel industry. The industry needs exports of $6 billion to achieve its annual target.
According to the General Director of Vietnam National Textile and Garment Group (Vinatex) Cao Huu Hieu, the textile and garment industry has been facing both opportunities and challenges during the past ten months. Market instability due to the COVID-19 epidemic and the Russia-Ukraine conflict almost did not affect Vinatex’s production and business activities in the first six months of the year, production and business results were very favorable for businesses. Revenue and profit exceeded the whole year plan.
However, from September and October, export volume decreased compared to previous months, due to difficulties in orders, and high inventory; in particular, in the US and EU, the main export markets of Vietnam’s textile and garment, the unit price decreased by about 30 percent, the supply progress of raw materials was slow due to China’s implementation of the Zero-Covid policy, causing a logistics chain crisis, labor fluctuations, etc.
Industry experts, expect the textile and garment market to remain subdued until the end of the fourth quarter of 2022 which may last until 2023. Financial crunch would also have a negative influence on the operation, production, and business of enterprises.
The textile exporters accepted the challenges of Russia-Ukraine finding solutions to boost production and keep exports, although Vietnam’s apparel markets are located near war zone which sometimes could cannot receive exported goods. The falling growth in EU countries also contributed to a decline in orders.
