Vietnamese textile and garment enterprises predict that these difficulties will persist until 2024, prompting them to cautiously reconsider their production and business plans.
Measures that textile and garment businesses are currently implementing include:
- Expanding their market and innovating management approaches.
- Enhancing labor productivity and improving the skills and discipline of their workforce.
- Planning to produce new types of products.
- Adapting to changes in the product market, for instance, producing fewer dress shirts and focusing on products such as trousers, polo shirts, and T-shirts.
- Optimizing costs by working remotely and reducing expenses in various aspects
Furthermore, Vietnam’s textile and garment industry is grappling with significant challenges from China. China is bolstering support for its domestic textile and garment sector and boasts a large-scale production capability. This has made competition more challenging for Vietnamese textile and garment businesses.
New opportunities for the textile and garment industry include the shift of the supply chain from China, foreign direct investment (FDI) in fabric production in Vietnam, and a focus on specialized and high-end products to serve international markets. However, the expected level of improvement is modest, and overall demand is projected to remain lower than in 2022.