The Vietnam Textile and Apparel Association (VITAS) expressed fear textiles, could decline in early 2023 due to runaway inflation and expectations of global recession. This it warned would result in a sharp rise in inventories.
The slump is expected to be substantial ranging from 20-27 percent in the first quarter of 2023. There are no hopes of improvement in the situation in the second quarter as well. The industry would come under severe stress if that happens
Another headache for apparel exporters is the increasing demand to produce products from recycled fibers to minimize emissions during production. To operate with fewer orders is already a major worry.
The association has forecast two scenarios for Vietnam’s textile and apparel 2023. The first is based on the expectation that apparel demand would rebound in the third and fourth quarter of next year. In this scenario the apparel exports could touch $48 billion which is equivalent to 8 percent annual growth
The second scenario, if the situation does not improve, exports could be $2 billion lower. The Vietnamese despite slump in global market still expect take exports to $43 billion this year. The Vietnamese exports to the US that stood at $18 billion are higher than the cumulative exports to the next three largest export markets of South Korea, Japan and China that stand at $12 billion.
