Textile and apparel industry exports expected to reach $43 billion this year

VIETNAM, July 22 –

HÀ NỘI Việt Nam’s textile and apparel industry is still on track to meet its US$42-43 billion export target this year, despite the industry having encountered many difficulties in the second half of this year.

Vũ Đức Giang, chairman of the Vietnam Textile and Clothing Association (VITAS), said this during the press conference on the trade performance of the textile industry in the first six months of the year which was held Thursday in Hà Nội.

According to VITAS, 2022 is the year in which companies in the textile and apparel industry gradually recover after two years of high incidence of the COVID-19 pandemic.

In the first six months, the value of Việt Nam’s textiles and clothing exports was estimated at $22.3 billion, up 17.7% year-on-year, of which $16.94 billion came from clothing exports (up 19.5%), $1.4 billion from fabric exports (up 20.8%), and $2.76 billion from fiber exports (up 4, 4%).

Meanwhile, the total import value of textile and apparel raw materials and accessories in the first six months was estimated at $13.4 billion, up 9.8 percent year on year.

Thus, the textile and clothing industry recorded a trade surplus of 8.86 billion dollars in the first half of this year, up 32% year on year. This was the effort of textile and clothing companies in a context where the global economy is still experiencing many difficulties.

However, according to Giang, Vietnam’s textile and garment industry still faces many risks and challenges in the second half of this year, including the new strain of COVID-19 which is still present.

Many markets that are important trading partners of Việt Nam, such as Mainland China, Japan and Taiwan, are still applying strict pandemic prevention measures. This significantly affects the supply chain of raw materials and accessories as well as the consumption of textile products made in Việt Nam.

In addition, high inflation in Việt Nam’s main textile and clothing consumer markets, such as the United States and Europe, and the complicated development of the Russian-Ukrainian conflict have led to a continuous rise in the prices of materials. raw materials and fuels since the beginning of the year.

Specifically, the price increased by 19.1 percent for cotton; 40% for crude oil on the world market; 67% for the domestic price of gasoline. During this time, the cost of transport was three times higher than the average of the last five years.

These have increased the cost of business by around 20-25%.

“Vietnamese textile and garment enterprises still face a disadvantage in terms of exchange rate with competing countries, labor shortages after the pandemic, traceability requirements of cotton, fabric , yarn or green textile and apparel industry of next-generation free trade agreements (FTAs),” Giang said.

For example, the devaluation of the euro has a big impact on textile and clothing exports because it will increase the price of goods as consumers in this market tighten their spending, he said.

“In general, the purchasing power in the EU market will decrease, the competitiveness of textiles and garments imported from all countries in the EU market will be affected, not only textiles and garments from Việt Nam “, said Giang.

However, Giang said the export value of textiles and garments is expected to reach $20 billion to $21 billion in the second half.

To achieve this objective, textile and clothing companies must quickly restructure export markets so that they are no longer dependent on a few markets. They would have to change technology and equipment to meet the requirements of importing countries, such as the requirements on recycled clothing from the EU market.

In fact, Vietnamese textile and garment enterprises have set a target of export growth since the beginning of the year, but it is important to maintain the stability of export markets, employees, customers.

In general, to stabilize production and achieve sustainable goals in the future, companies themselves need to catch up with market trends, invest in machinery and technology, and switch to green production according to brand requirements. They also need to strengthen human resources, especially designers for the fashion industry.

In the past, VITAS has connected domestic enterprises with each other and with foreign-invested enterprises to form supply chains and expand export markets. It has also been an effective bridge between state management agencies and textile and garment enterprises.

The association will continue to support companies to offer recommendations and request support from the Government and ministries, sectors and localities in terms of pandemic prevention, production, market information, administrative reform. and human resource development. VNS

Michael O. Stutler