Textiles and garments face "double" difficulties: Lack of orders, unit prices are deeply reduced

VCN - In addition to the lack of orders, accepting orders is not their strength; businesses also face difficulties due to the deep reduction in unit prices, even by over 50% compared to normal.
Vietnam-Japan import and export reached more than $20 billion in the first 6 months of the year Vietnam-Japan import and export reached more than $20 billion in the first 6 months of the year
Sustainability and circularity a necessity for Vietnamese textiles Sustainability and circularity a necessity for Vietnamese textiles
Export market achieves US$100 billion for the first time Export market achieves US$100 billion for the first time
Businesses also face difficulties due to the deep reduction in unit prices, even by over 50%. Photo: Vinatex
Businesses also face difficulties due to the deep reduction in unit prices, even by over 50%. Photo: Vinatex

Exports to major markets all decreased

On July 19, the Vietnam Textile and Apparel Association (Vitas) informed the situation of Vietnam's textile and garment industry in the first half of the year.

Accordingly, in 2023, the negative impact of the epidemic and political fluctuations in the world will cause global economic growth to continue to decline (in 2021, it increased by 6%; in 2022, it increased by 3%. 2023 is only about 2%). The textile and garment industry accordingly was affected by a decrease in orders from major markets such as the US and EU.

In the first 6 months of 2023, textile and garment export turnover was estimated at USD 18.6 billion, down 17.6% over the same period in 2022. Import turnover was estimated at USD 10.7 billion, down 20.5% and had a trade surplus with USD 7.9 billion; the same period in 2022 is USD 8.8 billion.

Notably, exports to major markets in the first 5 months of the year mostly decreased: the US decreased by 27.1%, the EU decreased by 6.2%, Japan increased by 6.6%, South Korea decreased by 2%, Canada 10.9% off...

“This deep reduction is not only due to the impact of the economy but also from the pressure of 'greening' the industry, the OECD, EU supply chain tracing directive and the German Supply Chain Appraisal Law (which came into effect) from January 1, 2023). Besides, although the State Bank has reduced the operating interest rate 4 times, but due to the high deposit interest rate from the end of 2022, the loan interest rate is still high; businesses do not have access to support packages, for example, reducing interest rates by 2% with the package of VND 40,000 billion ...", Vitas said.

The unit price can be reduced by more than 50%

According to Vitas, production and export are forecast to improve gradually, but difficulties will continue until the end of 2023, because many businesses have not had enough orders for the third and fourth quarters. Besides the lack of orders, accepting orders is not their strength; businesses still face difficulties due to the deep reduction in unit prices, even more than 50% reduction compared to normal.

In 2023, the entire textile and garment industry aims to reach USD 39-40 billion. To accomplish the goal, the Vietnam Textile and Apparel Association believe that businesses need to focus on three core issues. Firstly, find solutions to retain employees, especially the core force, Organizing vocational skills training classes, training human resources for green and digital transformation.

Secondly, retaining customers, accepting orders is not a strength, it is not profitable to have jobs for employees, avoiding loosing potential customers; building a reliable, long-term partnership, exploiting new markets and paying attention to the domestic market.

Third, minimize the unnecessary expenses of the business.

Vitas said that it will continue to perform well its role of connecting businesses with businesses, businesses with brands, businesses with the Government; actively cooperate with prestigious international organizations to implement programs on labor, green energy, recycling cycle, digital transformation, design, branding, human resource management...

At the same time, organize trade promotion delegations; create opportunities to learn, exchange experiences, find customers for businesses, and at the same time act as an effective bridge between state management agencies and enterprises of textile and garment enterprises, raising awareness of developing the industry in the direction of green - clean - sustainable.

Talking about the production and business situation in the first 6 months of the year and the forecast for the second half of the year of the Vietnam National Textile and Garment Group (Vinatex) taking place at the end of June, Mr. Cao Huu Hieu, General Director of Vinatex shared that in the last months of 2023, it is forecast that Vietnam's textile and garment industry will still face many difficulties with a sharp shortage of orders and high input costs. The main export markets have not recovered while fierce competition is still taking place in the domestic market with the participation of many foreign brands and enterprises...

Facing these challenges, Vinatex continues to flexibly respond to volatile and uncertain movements of the market, regularly forecast and quickly update the situation of the world and domestic textile and garment market, giving priority to maintaining its strength of labor force on the basis of balance between employment and income, preserving human resources to be ready to catch opportunities when the market recovers; continue to invest in the direction of greening textiles…

By Ngoc Linh/Bui Diep

Related News

Preliminary assessment of Vietnam international merchandise trade performance in the first 9 months of 2024

Preliminary assessment of Vietnam international merchandise trade performance in the first 9 months of 2024

Highlights 1. According to trade statistics of Vietnam Customs, in September of 2024, a 8.0% downwards in total external merchandise turnover of Vietnam was recorded as compared to the result of August 2024. Exports went down 9.8 %, to USD 34.08 billion and imports decreased 5.9%, to USD 31.76 billion in terms of month-on-month basis. As a result, there was a USD 2.32 billion surplus in Vietnam’s trade balance in this month.
Preliminary assessment of Vietnam international merchandise trade performance in the second half of September, 2024

Preliminary assessment of Vietnam international merchandise trade performance in the second half of September, 2024

The Vietnam Customs Statistics announced that in the second half of September, 2024 the total Vietnam’s exports of US dollars 19.71 billion and imports of nearly US dollars 16.74 billion resulted in a trade surplus of US dollars 2.97 billion.

Latest News

VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - As one of Vietnam's strong export industries to the UK, especially when the Vietnam - United Kingdom of Great Britain and Northern Ireland Free Trade Agreement (UKVFTA) comes into effect, with a detailed information approach strategy, it has created a great driving force to promote the export of Vietnamese seafood products to this market.
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

VCN - By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN – In recent years, with the rapid development of cross-border e-commerce (CBEC) platforms, domestic enterprises in Vietnam have been facing numerous difficulties and challenges.

More News

Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Shrimp exports surge in 10 months, generating 3.2 billion USD

Shrimp exports surge in 10 months, generating 3.2 billion USD

Vietnam’s shrimp exports in October reached US$394 million, a strong 24% increase year-on-year, according to the Vietnam Association of Seafood Exporters and Producers (VASEP).
Vietnam’s exports to the U.S. near US$100 billion milestone

Vietnam’s exports to the U.S. near US$100 billion milestone

VCN - By the end of October, Vietnam's exports to the United States approached US$100 billion, reaffirming its position as Vietnam's largest export market.
From the “abnormal” coffee price, worries about the new crop

From the “abnormal” coffee price, worries about the new crop

VCN - The Vietnamese coffee industry enters the new crop with the question of what is a reasonable price to ensure benefits for coffee growers while still retaining international consumers.
What obstacles limit the market share of Vietnamese goods in the UK?

What obstacles limit the market share of Vietnamese goods in the UK?

VCN - Vietnamese goods account for only about 1% of total imports into the UK market. One of the reasons is that they have not yet built their own brands and have not focused on effective strategies and approaches to market information.
Why seafood exports to some Middle Eastern Countries are stalled

Why seafood exports to some Middle Eastern Countries are stalled

VCN - Several shipments of seafood exported to certain Middle Eastern countries have been delayed due to legal challenges related to consular legalization procedures. This has created significant bottlenecks in accessing these markets.
Storm No. 3 destroys profits of many insurance companies

Storm No. 3 destroys profits of many insurance companies

VCN - Due to the impact of storm No. 3, the business results of the third quarter and the first 9 months of 2024 of the insurance sector have been significantly affected. This requires more efforts from businesses for the results of the whole year 2024.
Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Vietnam, Malaysia eye golden partnership opportunities in Halal industry

Cooperation in the Halal industry can help Vietnamese products reach nearly 2 billion Muslim consumers worldwide, representing over 24% of the global population, according to Malaysia’s Minister of Investment, Trade, and Industry Zafrul Abdul Aziz.
Tra fish sector aiming for production, processing greening for sustainable development

Tra fish sector aiming for production, processing greening for sustainable development

Greening production and processing to meet export requirements is both a trend and a necessity for many industries, including the tra fish sector.
Read More

Your care

Latest Most read
VN

VN's food processing industry struggles to improve quality and value chain integration

Despite accounting for 19.1 per cent of Việt Nam’s processing sector, the food processing industry has been struggling with major issues such as poor-quality raw materials and subpar value chain integration, said industry insiders and economists.
Approach strategy of the seafood industry when implementing UKVFTA

Approach strategy of the seafood industry when implementing UKVFTA

VCN - Mr. Nguyen Hoai Nam, Deputy General Secretary, Vietnam Association of Seafood Exporters and Producers (VASEP), said that the advantage that UKVFTA brings is that the main products of the seafood industry enjoy 0% import tax to the UK, especially key
Mid-November: Vietnam

Mid-November: Vietnam's trade volume matches 2023 total, eyes record-breaking growth

By mid-November 2024, Vietnam's total import-export turnover reached an impressive US$681.48 billion, equaling the full-year trade figure for 2023
Vietnamese enterprises facing challenges from cross-border e-commerce platforms

Vietnamese enterprises facing challenges from cross-border e-commerce platforms

VCN - E-commerce platforms have emerged as crucial distribution channels, enabling goods to reach consumers quickly and conveniently.
Vietnam, Malaysia eye new milestone in trade ties

Vietnam, Malaysia eye new milestone in trade ties

The official visit to Malaysia from November 21-23 by Party General Secretary To Lam is expected to open up new opportunities for and mark a new milestone in the economic and trade cooperation between Vietnam and Malaysia. Vietnam and Malaysia are key economic, trade, and investment partners. Their economic and trade ties have steadily grown since the two nations established diplomatic relations in 1973.
Mobile Version