Vietnam’s textile and garment industry is showing signs of improvement, as key export markets recover, so orders increase sharply, besides, more and more foreign partners (EU and throughout Asia) come to Vietnam to learn more about textile industry.
Labor costs in China have increased, pushing up product prices, giving Vietnam a good chance to become the next hub for manufacturing labor-intensive goods. Industries that once thrived in China are moving to Vietnam.
Statistics from the General Department of Customs show that Vietnam’s textile and garment export value increased by 9.15% to 392 million USD and 3.2% to 3.2 billion USD in July 2023, respectively. It is expected that a good recovery will continue, export volumes will be higher in the second half of the year compared to the first half.
SOUTHERN
In the first 7 months of this year, a factory received orders equivalent to 76% of the planned revenue for the Q3 and 86% of the expected revenue for the Q4. The company has 3 main segments: Garment (76% ), Textiles (16%) and Fibers (6%).
NORTH
One unit announced that July revenue increased 11.5% to 33 million USD compared to the previous month and increased 2% over the same period last year. In the first 7 months of the year, revenue was 173.6 million USD, up 3% over the same period last year and 98% of the company’s revenue came from export markets: the United States was the largest (47%), France (15%), Canada (8%).
Another factory had better business results in the Q2, achieving (only) positive revenue growth compared to the same period in 2022; the company’s earnings before interest, taxes, depreciation and amortization exceed 10.5.
FORECAST
According to the World Bank, by 2023, GDP growth in major export markets will increase: US 1.1%, China 5.6%, Japan 0.8%, leading to rising incomes and a resurgence in consumer confidence. When consumption recovers, their wallets are expected to increase in the festive season at the end of the year.
Inventories of major brands: Nike, H&M, GAP, Inditex are much lower than mid-2022 and the need to replenish inventories will bring bright prospects for textile exporters.
Vietnam’s textile and apparel sector is expected to reach $40 billion in 2023, albeit down 9-10 percent year-on-year.
According to World Trade Organization data, in 2022 Vietnam exported $35 billion worth of ready-made garments.
Vietnam – the second largest apparel exporter to the United States, exporting $18.24 billion in 2022, up from $12.21 billion in 2018 and $14.37 billion in 2021.
Vietnam’s share of total US apparel imports increased from 14.74 percent in 2018 to 18.26 percent in 2022.
COTCO (According to Textile Today)