VCN – The outlook for export orders in the fourth quarter of 2022 and the first six months of 2023 of Vietnam’s textile and garment industry is not very positive, due to concerns about inflation and high inventories of clients.
|illustration image. Photo: Nguyễn Thanh
According to the Vietnam National Textile and Garment Group, in the first nine months of 2022, textile and garment exports are estimated at US$35 billion, equivalent to an average of US$3.7 – US$3.8 billion per month. However, it is expected that in the last three months of the year, the average export value will only be about US$3.1 – US$3.2 billion per month.
According to the Ministry of Industry and Trade, the prospect of orders for the fourth quarter of 2022 and the first six months of 2023 of Vietnam’s textile and garment industry is not very positive, due to concerns about inflation and high inventories of clients.
The number of orders in the fourth quarter of 2022 was 25-50% lower than the second quarter of 2022, equivalent to a decrease of 15-20% in revenue, due to high inventories in import markets.
Mr. Truong Van Cam, Vice Chairman of the Vietnam Textile and Apparel Association (VITAS), assessed that along with the decrease in orders, exchange rate fluctuations were also having many impacts on textile enterprises.
The USD increased against the VND, the exporters earned USD and converted it into VND to benefit. On the other hand, enterprises importing raw materials and accessories are suffering a disadvantage, especially in the context that Vietnam’s textile and garment industry is currently importing a large proportion of raw materials and accessories, especially fabrics.
Facing many difficulties, Mr. Cao Huu Hieu, General Director of Vietnam Textile and Garment Group, said: “It is expected that the textile and garment industry will still have the opportunity to reach the export target of US$43 – US$44 billion in the whole of 2022.”
Mr. Truong Van Cam also noted that enterprises in the textile and garment industry needed to closely monitor the situation, choose appropriate orders, maintain production, and ensure jobs for workers in the immediate future; don’t worry too much about signing long-term orders at low prices.
In the current situation, there are many solutions that businesses can apply such as allowing employees on leave, reducing overtime; enterprises take advantage of the time to implement programs at the request of export markets such as greening and digitization; organizing a dialogue with partners to share difficulties, build long-term and trusting relationships.
By Thanh Nguyễn/Thanh Thuy