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Saturday, February 24, 2024

Vinatex expects 2024 garment export orders to improve slightly

The Vietnam Textile and Garment Group (Vinatex) which is among the top Vietnamese producers of textiles and garments held a board meeting to discuss the production and business plan for 2024.

Cao Huu Hieu, General Director of Vinatex said that total world textile and garment demand in 2024 is expected to improve slightly over 2023 but will still be lower than 2022.

Le Tien Truong, Chairman of Vinatex added that demand in 2024 is likely to improve by 3-5 percent compared to 2023.

Le Tien Truong also added that Vinatex must seize the opportunity arising from the application of the US Forced Labor Prevention Act (UFLPA) on Chinese garment imports.

Truong stated that the increasing USD/VND exchange rate supports export activities, but at the same time competing countries have devalued their currencies, leaving little room to take advantage.

He also observed that lending interest rates in Vietnam have decreased significantly, helping to reduce the pressure on interest costs on businesses.

Truong also expected that the government’s current business support policies may be extended in 2024 also.

The meeting observed that by September 2023, although export turnover declined, exports to the US and China recorded increases of 2 and 11 percent respectively, over the same month last year.

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