Rise in the value of Vietnam’s garment exports in nine months

VIETNAM, October 14 – HÀ NỘI — The value of Việt Nam’s textiles and clothing exports reached $35 billion in the first nine months of 2022, up 21% from the same period last year .

To achieve this result, textile and apparel enterprises have made great efforts to face market challenges.

The companies did not depend on the five traditional export markets, including the United States, Europe, Japan, South Korea and China, but also expanded their exports to Russia and some other countries.

In Europe, they have not only focused on a few major export markets such as Germany, France, Spain and the United Kingdom as in the past, but also expanded exports to other countries in the EU.

In addition, many companies have eyed Mexico and other countries in Africa.

They also encouraged the production of knitwear for export instead of only making traditional products such as jeans, khakis or t-shirts, due to a shortage of orders for these traditional products.

Among the textile and garment exporting countries in the world, including Bangladesh, India and China, Việt Nam had the first open policy for normal operation after the COVID-19 pandemic.

Thus, during the first six months of the year, the textile and clothing industry of Việt Nam recorded a large number of orders and good commercial results.

Vũ Đức Giang, chairman of the Vietnam Textile and Clothing Association (VITAS), said that in the first half of 2022, the textile and clothing industry saw growth in export orders. , but that in the third quarter of 2022, the market began to see signs of a decrease.

The reduction in export orders was due to lower demand in major export markets such as the United States and the EU. High inflation in these markets has caused people to drastically reduce their spending. In which, clothing was a heavily discounted commodity.

Meanwhile, markets that are important trading partners of Việt Nam such as Mainland China, Japan and Taiwan are still enforcing strict measures against the COVID-19 pandemic. This affected the supplies of raw materials, auxiliary materials and the consumption of textile products from Việt Nam.

To deal with these challenges, companies have reorganized work schedules to provide stability for workers.

Companies in the textile and apparel industry are still able to overcome challenges in the fourth quarter, but difficulties are expected to persist through the first quarter of 2023, Giang said.

Trần Như Tùng, Chairman of Thành Công Textile – Investment – ​​​​Trading JSC, said that almost all countries exporting textiles to the US and European markets have experienced a drop in orders due to high inflation and falling prices. demand for clothing products.

According to Tung, for companies focusing on these two markets, they faced a sharp decline in production and business. Meanwhile, companies expanding their exports to other markets, such as Thành Công, saw a milder decline than others.

Thành Công saw a bigger reduction in orders than expected, but it was not too much. In the first nine months of the year, the company made 80% of plan revenue and 85% of plan profit after tax, he said.

Experts said that if in the first eight months of the year the average export value per month was 3.7-3.8 billion dollars, the value should be 3.1-3.2 billion dollars per month during the last four months of the year.

According to VNDirect Research, the textile and clothing industry will be brighter in the first quarter of 2023 as export tariffs on certain types of textile and clothing products from Việt Nam to the EU market will be reduced. 2 to 4% thanks to the EU. – Việt Nam Free Trade Agreement (EVFTA).

Furthermore, the European Commission forecasts that inflation in the EU will reach 8.3% in 2022 and fall to 4.3% in 2023. Lower inflation will boost demand for fashion and clothing in 2023.

Therefore, some local garment companies exporting suits, shirts, pants and skirts to the EU, such as Sông Hồng Garment, May 10 and Việt Tiến, will benefit more from the EVFTA. —VNS

Michael O. Stutler