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Due to global economic slowdown, textile exports to the United States dropped by 27.1 per cent during the first five months, while exports to Canada and the European Union (EU) declined by 10.9 per cent and 6.2 per cent respectively.
As Vietnam’s garment export revenue in 2023 first half dropped by 17.6 per cent year on year to $18.6 billion, its textile-garment industry is working hard to meet its export target of $39-40 billion this year.
While exporters face stiff competition from China, exports to Western markets have dipped.
Pressure to adopt more sustainable practices is growing.
Vietnamese textile exporters are also facing stiff competition from China. High lending rates—between 9 per cent and 11 per cent—further raise production costs compared to competitors.
Moreover, the average monthly wage for textile workers in Vietnam is around $300, considerably higher than in Bangladesh ($95), Cambodia ($190) and India ($145)—a key challenge for Vietnam’s textile industry to stay competitive.
Imports into Vietnam fell by 20.5 per cent YoY in H1 2023, leading to a trade surplus of $7.9 billion—nearly $1 billion lower than in the same period in 2022, according to a report in a Vietnamese media outlet.
Global textile demand is projected to fall from $757 billion to around $712 billion, and it could potentially reach as low as $687 billion.
Growing pressure to adopt more sustainable production practices demands additional efforts and cost from Vietnamese exporters to secure new orders.
The measures VITAS has emphasised to support the country’s textile and garment industry in achieving its ambitious export target include retaining skilled personnel, investing in employee upskilling, fostering customer loyalty and optimising business expenses.
Fibre2Fashion News Desk (DS)
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