April 23, 2024

Vietnamese Textile & Apparel Exports Grow 9.62% In Jan-March

In the first quarter of 2024, exports from the Vietnamese textile and garment industry reached US $9.53 billion, an increase of 9.62 percent over the same period of previous year.

The industry has set a target of reaching $44 billion in textile and apparel exports, up 9 percent compared to 2023 and if exports to continue to rise as in the first quarter, then the target is achievable.

According to the Vietnam Textile and Apparel Association, the textile and clothing sector is seeing many signs of improvement.

“Demand in key export markets and the production situation of businesses, signal that they are better placed than in the same period last year,” the trade body added.

Surveys at a number of textile and garment exporters reveal that many businesses have enough orders until the end of June, and some businesses even have enough orders until the end of the year.

“The recent increase in orders shows that the textile and garment industry is continuing to recover,” Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association said.

“However, facing potential market risks mandates businesses to proactively find solutions to maintain growth and stabilise jobs for workers,” Giang added.

According to Vietnamese economists, the world economy has many bright spots for the textile and garment industry to recover, especially in the industry’s traditional and large export markets.

However, the textile industry still faces many difficulties such as conflict in the Red Sea, tensions between Russia and Ukraine and trade wars between major countries.

Furthermore there will be major challenges as export orders are expected to be smaller in quantity, buyers seeking faster delivery times, risky supply chain, and high input costs.

Along with that, there are other challengers of risk of debt repayment obligations, interest rate risk, and depreciation of the Dong, the Vietnamese currency.

The economists suggested accelerating production processes to compensate for extended shipping times due to tensions in the Red Sea.

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