US-China trade war causes losses for apparel firms

Vietnam’s garment and textile sector has been suffering huge losses since late 2018 as a result of the fallout from the US-China trade war, according to a report released by the Ministry of Industry and Trade.
us china trade war causes losses for apparel firms

The report noted that the escalating trade tensions between the two superpowers has negatively affected the exchange rate between currencies, therefore pushing the prices of outsourced goods in Vietnam higher than those of other regional countries such as the Republic Korea and China.

This has therefore had an impact on export orders, notably those among textile and apparel businesses.

At present, the export orders of a number of garment and textile firms have been at only about 70 per cent of the figure recorded last year. In particular, the consumption of yarn and raw materials has encountered numerous difficulties with China, which represents a major export market, has reduced the import volume.

Furthermore, the garment sector has experienced a significant drop in export orders. For example, during the first half of 2018, many big businesses in the industry had received orders until the end of the year. However, as of the middle of 2019, local firms have only signed export orders with small quantities.

This fall can be attributed to the fact that several foreign partners have concerns regarding the escalating US-China trade war, resulting in export orders to be pided into small ones instead of large quantities.

Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, said that the textile and apparel industry has been suffering significant losses since 2018 due to the ongoing trade war.

The tensions between the two nations has put pressure on the supply source of Vietnam's textile and apparel sector as businesses are paying higher costs in order to purchase fabrics, while simultaneously experiencing a decline in prices from export orders, Giang noted.

Source: VOV

Related News

Spending US$380 billion for imports, China accounts for 38% of country

Spending US$380 billion for imports, China accounts for 38% of country's imports

VCN - In 2024, the total import turnover of the whole country reached US$380.76 billion, an increase of 16.7% year-on-year (or US$54.41 billion), according to statistics of the General Department of Customs.
Imported automobiles show a declining trend in early December

Imported automobiles show a declining trend in early December

VCN - The volume of completely built-up (CBU) automobiles imported into Vietnam witnessed a sharp decline in the first half of December 2024, according to preliminary statistics released by the General Department of Vietnam Customs​
Accelerating official fruit and vegetable exports to China

Accelerating official fruit and vegetable exports to China

VCN - Vietnamese businesses must update and meet China's increasingly stringent food safety requirements.

Latest News

Sustainable fashion presents promising niche market for textile manufacturers

Sustainable fashion presents promising niche market for textile manufacturers

The combination of sustainability and culture will open up more opportunities for Vietnamese textile enterprises to strengthen their position in the global market and capture the promising Nordic fashion market.
VN

VN's car industry to diversify supply chain

While China remains a significant supplier, recent trade data highlights Việt Nam’s efforts to diversify supply to meet industry demands.
Exports of agro-forestry-aquatic products down nearly 5 per cent in January

Exports of agro-forestry-aquatic products down nearly 5 per cent in January

Việt Nam’s export value of agro-forestry-aquatic products was estimated at US$5.08 billion in January, marking a 4.9 per cent decline compared to the same period last year.
Thailand reviews anti-dumping tax on Vietnamese steel

Thailand reviews anti-dumping tax on Vietnamese steel

TRAV recommended that the Việt Nam Steel Association (VSA) notify relevant local manufacturers and exporters to answer the investigation questionnaire within the prescribed deadline.

More News

In the first 15 days of 2025, total import-export turnover reached more than US$34 billion

In the first 15 days of 2025, total import-export turnover reached more than US$34 billion

VCN - Total import-export turnover in the first half of January 2025 reached more than US$34 billion, the trade balance had a deficit of nearly US$2 billion.
Pangasius fetch record price in early 2025

Pangasius fetch record price in early 2025

Currently, larger pangasius weighing over 1.2kg, are selling at VNĐ32,440 (US$1.29) per kilogram, a record high not seen since 2022.
Việt Nam and India trade reached $15 billion in 2024

Việt Nam and India trade reached $15 billion in 2024

Trade relations between Việt Nam and India continue to flourish, with bilateral trade turnover reaching around US$15 billion in 2024.
Việt Nam

Việt Nam's port firms thrive in 2024

Strategic investments and expansions are expected to further enhance the sector’s performance.
Software exporter looks to new pace of growth

Software exporter looks to new pace of growth

FPT Software (F-Soft) Đà Nẵng plans to earn VNĐ3.6 trillion (US$144 million) in exports in 2025 after introducing a third campus at the FPT Complex and signing a strategic deal with the city.
Việt Nam

Việt Nam's exports to EU see impressive recovery in 2024

Việt Nam’s exports to the EU made an impressive recovery in 2024, reaching nearly US$51.7 billion, an increase of $8.08 billion compared to 2023.
Việt Nam–CPTPP trade turnover exceeds $100 billion

Việt Nam–CPTPP trade turnover exceeds $100 billion

The turnover accounts for 13.1 per cent of Việt Nam’s total import-export turnover last year.
E-commerce, a game changer for textile manufacturers

E-commerce, a game changer for textile manufacturers

According to a Việt Nam Textile and Apparel Association (VITAS) report, the proportion of textile businesses adopting e-commerce strategies has increased from 7-8 per cent in 2021, to over 20 per cent by the end of last year.
China remains the largest market for Việt Nam’s cassava and cassava products

China remains the largest market for Việt Nam’s cassava and cassava products

China accounted for 92.85 per cent of the total export volume and 91.77 per cent of the total export value, amounting to 2.43 million tonnes worth $1.06 billion.
Read More

Your care

Latest Most read
Sustainable fashion presents promising niche market for textile manufacturers

Sustainable fashion presents promising niche market for textile manufacturers

The combination of sustainability and culture will open up more opportunities for Vietnamese textile enterprises to strengthen their position in the global market and capture the promising Nordic fashion market.
VN

VN's car industry to diversify supply chain

While China remains a significant supplier, recent trade data highlights Việt Nam’s efforts to diversify supply to meet industry demands.
Exports of agro-forestry-aquatic products down nearly 5 per cent in January

Exports of agro-forestry-aquatic products down nearly 5 per cent in January

Việt Nam’s export value of agro-forestry-aquatic products was estimated at US$5.08 billion in January, marking a 4.9 per cent decline compared to the same period last year.
Thailand reviews anti-dumping tax on Vietnamese steel

Thailand reviews anti-dumping tax on Vietnamese steel

TRAV recommended that the Việt Nam Steel Association (VSA) notify relevant local manufacturers and exporters to answer the investigation questionnaire within the prescribed deadline.
In the first 15 days of 2025, total import-export turnover reached more than US$34 billion

In the first 15 days of 2025, total import-export turnover reached more than US$34 billion

VCN - Total import-export turnover in the first half of January 2025 reached more than US$34 billion, the trade balance had a deficit of nearly US$2 billion.
Mobile Version