Vietnam Garment Exports Rise, Challenges Remain
The garment and textile industry anticipates robust growth in the latter half of 2024, driven by increasing orders and improving consumer demand.
Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association, expressed optimism as many enterprises have secured orders for October and November. This positions them to strive towards meeting the export target of US$44 billion for the year.
Key markets such as the US and the EU are experiencing economic recovery, supported by controlled inflation that enhances purchasing power. Brand inventories are notably decreasing, signaling positive market conditions.
Cao Huu Hieu, director general of the Vietnam National Textile and Garment Group, highlighted that most companies have orders until the end of the third quarter and are actively negotiating new orders for the peak season leading up to the Christmas and New Year holidays.
Hieu projects an 8-10% increase in garment and textile exports for 2024. Despite these optimistic projections, Giang noted challenges including smaller orders with tighter deadlines and stricter green production regulations for exports to the EU and US markets.
Labor shortages are another pressing issue, with an estimated need for 500,000 more workers in the industry. The association urged companies to upgrade technology, implement automation, and adopt sustainable practices to enhance quality and productivity.
Giang emphasized the importance of using environmentally friendly raw materials to align with sustainable fashion trends and promote a circular economy. Diversification in market reach was also cited as crucial.
In the first half of 2024, garment and textile exports reached approximately $16.282 billion, reflecting a 3% increase compared to the same period last year.
