Vietnam’s Textile And Garment Exports Face Many Challenges

Vietnam's textile and garment exports face many challenges in the second half of the year

The Vietnam textile and Garment Association and the US cotton International Association jointly held a seminar on Sustainable cotton supply chain. The participants said that although the textile and garment export performance in the first half of 2022 was good, it is expected that in the second half of 2022, both the market and the supply chain will face many challenges.

Wu Dejiang, chairman of Vietnam textile and Garment Association, said that in the first six months of this year, the export volume of textile and garment is estimated to be about 22 billion US dollars, an increase of 23% year-on-year. Against the background of all kinds of difficulties caused by the long-term impact of the epidemic, this figure is impressive. This result benefited from 15 effective free trade agreements, which opened up a more open market space for Vietnam's textile and garment industry. From a country that relies heavily on imported fiber, Vietnam's yarn export earned US $5.6 billion in foreign exchange by 2021, especially in the first six months of 2022, the yarn export has reached about US $3 billion.

Vietnam's textile and garment industry has also developed rapidly in terms of green and sustainable development, turning to green energy, solar energy and water conservation, so as to better meet international standards and gain high trust from customers.

However, Wu Dejiang predicted that in the second half of 2022, there will be many unpredictable fluctuations in the world market, which will bring many challenges to the export goals of enterprises and the entire textile and garment industry.

Wu Dejiang analyzed that high inflation in the United States and Europe has led to a sharp rise in food prices, which will lead to a decline in the purchasing power of consumer goods; Among them, textile and clothing will drop significantly, and affect the orders of enterprises in the third and fourth quarters. The conflict between Russia and Ukraine is not over yet, and the price of gasoline and the cost of shipping are rising, leading to an increase in the production cost of enterprises. The price of raw materials has increased by nearly 30% compared with the past. These are the challenges faced by enterprises.

In view of the above problems, the enterprise said that it was actively paying attention to the market dynamics and adjusting the production plan in time to adapt to the actual situation. At the same time, enterprises actively transform and diversify the supply of domestic raw materials and accessories, take the initiative in delivery time, and save transportation costs; At the same time, we regularly negotiate and find new customers and orders to ensure the stability of production activities.

Post time: Sep-06-2022