Vietnam Secures Textile Orders Through 2024
According to the Vietnam Textile and Apparel Association (VITAS), several textile companies in Vietnam have secured orders through the end of 2024 and are already negotiating deals for the upcoming year. Key export markets such as the U.S., Japan, South Korea, and China have shown positive growth, contributing to a significant rise in export turnover. In July, Vietnam’s textile exports reached $3.72 billion, marking a 17.6% increase from the previous month.
From January to July, the country’s textile export turnover totaled approximately $20.3 billion, reflecting a 6.3% year-on-year increase, according to data from Vietnam Customs.
TNG Investment and Trading JSC, a major supplier for brands like Decathlon and Asmara, reported second-quarter revenue of VND2.174 trillion ($87.4 million) and a post-tax profit of VND86 billion, representing year-on-year increases of 8.8% and 57.1%, respectively. TNG’s surge in orders is partly attributed to increased demand ahead of the Paris Olympics, with enough contracts secured to last through the year.
VITAS predicts continued strong growth in textile exports, driven by rising demand in the latter part of the year. In the U.S., one of Vietnam’s major markets, textile product inventories fell by 2.4% in the first half of the year, though sales rose by 1.2%. Over the past seven months, the U.S. imported $8.93 billion worth of Vietnamese textiles, a 5.5% increase compared to last year.
Instability in Bangladesh has potentially led to factory closures, prompting global clients to explore alternatives like Vietnam. However, despite the increase in orders, profit margins for the industry are under pressure due to rising labor costs. The recent 6% increase in Vietnam’s minimum wage in July has posed challenges, with only about half of the 30 listed textile firms reporting profit growth in the second quarter.
