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Facing many difficulties, textile and garment exports are "targeting" US$43 billion

20:27 | 10/08/2022

VCN - Talking to Customs News, Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, affirmed that despite facing many difficulties in the second half of the year, the whole textile and garment industry was still aiming to achieve an export value of about US$20-21 billion, bringing the export value of the whole year to about US$42-43 billion.

Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association
Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association

How do you evaluate the textile and garment import and export results in the first half of this year?

2022 is the time when textile and garment enterprises gradually recover after two years of being heavily affected by the Covid-19 pandemic. In the first six months of 2022, textile and garment export turnover is estimated at about US$22.3 billion, up 17.7% over the same period in 2021. In which, the main export products are garments, export turnover is US$16.94 billion, up 19.5% over the same period last year; fabric exports reached US$1.4 billion, up 20.8%; fiber exports reached US$2.76 billion, up 4.4%; export of textile and garment accessories reached US$734 million, up 22.3%; and non-woven fabric exports reached US$452 million, up 25.5%.

In the opposite direction, the total import turnover of textile raw materials and accessories in the first six months of 2022 is estimated at US$13.4 billion, up 9.8% over the same period in 2021. Therefore, the textile and garment industry's trade surplus reached US$8,86 billion in the first half of this year, an increase of 32% compared to the first half of 2021. This is thanks to the great efforts of textile and garment enterprises in the context of many difficulties.

It is forecast that in the second half of the year, what difficulties will Vietnam's textile and garment exports face?

It is forecast that Vietnam's textile and garment industry faces many immediate risks and challenges when the risk of a re-emergence is caused by new strains of Covid-19.

The markets that are important trade partners of Vietnam such as China, Japan, Taiwan (China) are applying strict anti-pandemic measures, significantly affecting the supply chain of raw materials and accessories and consumption of textile products in Vietnam.

In addition, high inflation in major textile and garment consuming markets of Vietnam such as the US, EU and complicated developments of the Russia-Ukraine conflict caused the prices of raw materials and fuels to rise continuously since the beginning of the year.

Specifically, cotton prices increased by 19.1%; crude oil prices increased by 40%; domestic gasoline prices increased by 67%; transportation costs are three times higher than the average in the past five years causing costs for enterprises to increase by about 20-25%.

It must be added that, the disadvantage of exchange rates with competitors, the shortage of labor after the pandemic, the need for traceability of cotton, fabric, yarn, or the greening of textiles from the Free Trade Agreements.

For example, the devaluation of the euro has a great influence on textile and garment exports because it will increase the cost of goods in the context that people are tightening their spending. In general, the purchasing power in this market will decrease, the competitiveness of textiles and garments from all countries entering the EU market will be affected, not only Vietnam's textile and garment industry.

Based on the results achieved in the first half of the year, could you tell me what is the feasible export target of the entire textile and garment industry in 2022?

In the second half of the year, it is expected that textile and garment exports will reach US$20-21 billion, bringing the total textile and garment export value of the whole year to US$42-43 billion. To achieve this goal, enterprises must adapt quickly and restructure the export market so as not to be too dependent on a few markets; changing technological equipment to adapt to the requirements of import markets, typically the requirements for importing recycled goods into the EU market.

In fact, Vietnamese textile and garment enterprises have set goals and determination to break even this year, but it is important to keep the market, employees and customers stable. Businesses are also tightening their spending, controlling all costs to minimize costs.

In general, in order to stabilize production and achieve sustainable goals, enterprises themselves need to catch up with market trends, invest in machinery and technology, to adapt to the requirements, strengthen solutions to build and train human resources to adapt to the difficult situation, especially focusing on design for the fashion industry.

The Vietnam Textile and Apparel Association has been performing the role of connecting domestic enterprises with each other and foreign-invested enterprises to form supply chains; expanding export markets; participating and actively working in many large international organizations specializing in textiles; coordinating with international organizations to implement programs on renewable energy, water saving, design, sales, branding and labor management.

In particular, the association always promotes its role as an effective bridge between state management agencies and textile enterprises, raising awareness of developing the industry in the direction of green – clean – sustainable.

The Vietnam Textile and Apparel Association will continue to accompany businesses in reflecting, proposing recommendations, and calling for support from the Government and ministries, branches and localities on pandemic prevention and market information, seaport costs, union costs, institutional reform, simplifying administrative procedures, training and developing human resources.

Thank you Sir!

By Thanhnguyen(recorded)/Quynhlan