Vietnam textile industry falls short of US$42-billion export target
Vietnam’s textile and apparel exports in 2020 are set to decrease by 10% against 2019 to US$35 billion.
A disruption of the global supply chain for input materials and a sharp decline in the number of orders due to the Covid-19 pandemic are severely impacting Vietnam’s textile industry, making it difficult to realize the US$42-billion garment export target set for this year.
Vietnam's textile industry is among the hardest-hit sectors by the Covid-19 pandemic. Photo: Hai Linh. |
Along with tourism, aviation and footwear, textile is one of the hardest-hit sectors by the Covid-19. According to statistics from the Ministry of Industry and Trade (MoIT), the export turnover of the industry declined by 9.3% year-on-year in the first ten months of 2020 to US$24.76 billion.
At this time of last year, Vietnamese textile firms were flooded with pre-orders even for the first half of the following year. However, the Covid-19 pandemic has changed customers behavior globally as the world is now focusing on basic necessities and health equipment. As a result, many are facing the risk of having no orders in the final months of the year.
Vu Duc Giang, president of the Vietnam Textile and Apparel Association (VITAS), said major markets for Vietnam’s textile and apparel products are currently struggling with the Covid-19 pandemic, causing declines of 80 – 90% in their purchases.
Therefore, Vietnam’s textile and apparel exports in 2020 are set to decrease by 10% from 2019 to US$35 billion, said Mr. Giang.
General Director of Ho Guom Garment Company Phi Ngoc Trinh said current orders only reach 60% of the year’s plan. In a normal situation, by the time of the third quarter, enterprises would receive enough orders for the whole following year. However, this year, the company’s exports are projected to decline by 10% against last year to US$30 million.
Adopting to new situation
In fact, difficulties that local enterprises are facing are similar to the global situation, as demand in the international textile and apparel market has significantly shrunk. To adapt to the new situation, many firms have now shifted their production from traditional products to protective clothes to stay afloat.
Deputy Head of the Import – Export Department under the Ministry of Industry and Trade (MoIT) Tran Thanh Hai said the lack of buyers is the most important issue for local enterprises at the present.
So far, the MoIT is actively searching for new markets for Vietnam’s textile products, including the organization of online supply – demand connection events.
Minister of Industry and Trade Tran Tuan Anh urged Vietnamese enterprises to change their operations and form production chains, arguing this is key for them to enhance resilience against market volatility.
Moreover, local enterprises are still relying on input materials from China, which could become a major obstacle if they want to enjoy preferential treatments from the EU – Vietnam Free Trade Agreement (EVFTA), in which the compliance to the rule of origin is essential.
Other News
- Vietnam seeks to strengthen ties with Finland
- Vietnam urged to soon implement PDP VIII
- Argentina seeks to elevate ties with Vietnam to strategic partnership
- Vietnamese Gov’t to strengthen gold market management
- South Korea to increase ODA by 50% to Vietnam in 2024
- Vietnam a priority for Dutch businesses in Southeast Asia
- Hanoi promotes legal awareness and consumer rights protection initiatives
- Vietnam seeks Japan’s new-generation ODA for major transport projects
- Finance ministry expected to impose 50% duty on e-cigarettes
- South Korea’s SK Group eyes green hydrogen project in Vietnam
Trending
-
Hanoi, a city of music in the making
-
Vietnam urges respect for international law in East Sea
-
Hanoi kicks off communication contest on Dien Bien Phu victory
-
French education group Odyssey keen on strengthening cooperation with Hanoi
-
Hanoi, Shanghai strengthen investment cooperation
-
UOB Painting of the Year Award opens doors to the world for Vietnamese artists
-
Grapefruit blossom perfume Hanoi's air
-
MICE tourism: Vietnam's lucrative “golden market” unveiled
-
Vietnam: Sleep Tourism on the rise