Vietnam records 23.5% year-on-year increase in textile-garment exports in January-May 2022

Vietnam saw a year-on-year (YoY) increase of 23.5% in export of textiles and clothing earn $18.7 billion between January and May this year amid continued market uncertainty and rising input costs. Vietnam National Textile and Garment Group (Vinatex) saw its revenue increase by 50%. Most companies have orders to fulfill by the end of September.

Many are negotiating to earn more for the rest of the year.

Nam Dinh Textile Garment JSC (Natexco) generated more than VND 1.02 trillion in revenue at the end of May, up 23 percent year-on-year, according to union chairman Doan Van Dung.

Vietnam saw a 23.5% year-on-year increase in its textiles and clothing exports to $18.7 billion between January and May this year amid continued uncertainties over market and increased input costs. Vietnam National Textile and Garment Group (Vinatex) saw its revenue increase by 50%. Most companies have orders to fulfill by the end of September.

Natexco suffered from severe labor shortages in February and March, as there were times when up to half of its workers had to take sick leave due to a coronavirus infection. COVID-19.

Viet Thang Corporation struggled to sustain production in the first quarter of the year as the Russia-Ukraine crisis caused supply chain disruptions and a spike in input and fuel prices and logistics costs, said the company’s deputy general manager, Dau Phi Quyet. .

These expenses increased three or four times, and as a result, all units were struggling to find possible ways out of the situation, Quyet said.

Although the company has managed to find stable supplies of inputs, it suffers from a shortage of imported replacements for the equipment components to manage. Previously, it took six to eight weeks to receive deliveries of replacements, which normally came from Europe. Now shipments can take up to 12 weeks to arrive. To reduce logistics costs, the company gives priority to large orders over minor orders.

Similar challenges could potentially dampen Vinatex’s growth in the remaining months of this year, according to a report by a Vietnamese news agency.

Vinatex CEO Cao Huu Hieu said decades-high inflation is ravaging major economies, leading to higher inventories and lower purchasing power, which could have substantial effects on the company’s performance. ‘company.

To overcome the crisis, Hieu advised domestic manufacturers to prepare with more flexible plans to respond quickly to any changes in the market.

Fibre2Fashion (DS) News Desk

Michael O. Stutler