In recent years, the textile and garment industry in Vietnam and Cambodia has shown amazing growth.
Vietnam, in particular, not only ranks first in global textile exports, but has even surpassed China to become the largest supplier to the US clothing market.
According to a report by the Vietnam Textile and Garment Association, Vietnam’s textile and garment exports are expected to reach $23.64 billion in the first seven months of this year, up 4.58 percent from the same period in 2023. Apparel imports are expected to reach $14.2 billion, up 14.85 percent.
Orders until 2025!
In 2023, the inventory of various brands has been reduced, and some textile and apparel companies have now sought smaller enterprises through the association to reprocess orders. Many companies have received orders for the end of the year and are negotiating orders for early 2025.
Especially in the context of the difficulties faced by Bangladesh, Vietnam’s main textile and garment competitor, brands can shift orders to other countries, including Vietnam.
SSI Securities’ Textile Industry Outlook report also said that many factories in Bangladesh are closed, so customers will consider shifting orders to other countries, including Vietnam.
Counselor to the Economic and Commercial Section of the Vietnamese Embassy in the United States, Doh Yuh Hung, said that in the first few months of this year, Vietnam’s textile and garment exports to the United States achieved positive growth.
It is predicted that Vietnam’s textile and garment exports to the United States may continue to increase in the near future as the autumn and winter season approaches and suppliers actively purchase reserve goods ahead of the November 2024 election.
Mr. Chen Rusong, chairman of Successful Textile and Garment Investment and Trading Co., LTD., which is engaged in the field of textile and garment, said that the company’s export market is mainly Asia, accounting for 70.2%, the Americas accounted for 25.2%, while the EU only accounted for 4.2%.
As of now, the company has received about 90% of the order revenue plan for the third quarter and 86% of the order revenue plan for the fourth quarter, and expects the full-year revenue to exceed VND 3.7 trillion.
The global trade pattern has undergone profound changes.
Vietnam’s ability to emerge in the textile and garment industry and become a new global favorite is behind the profound changes in the global trade pattern. First, Vietnam devalued by 5% against the US dollar, giving it greater price competitiveness in the international market.
In addition, the signing of the free Trade Agreement has brought great convenience to Vietnam’s textile and garment exports. Vietnam has signed and entered into force 16 free trade agreements covering more than 60 countries, which have significantly reduced or even eliminated related tariffs.
Especially in its major export markets such as the United States, the European Union and Japan, Vietnam’s textiles and apparel are almost tariff-free entry. Such tariff concessions allow Vietnam’s textiles to move almost unimpeded in the global market, making it an ideal destination for global orders.
The large investment of Chinese enterprises is undoubtedly one of the important driving forces for the rapid rise of Vietnam’s textile and garment industry. In recent years, Chinese companies have invested a lot of money in Vietnam and brought advanced technology and management experience.
For example, textile factories in Vietnam have made remarkable progress in automation and intelligence. The technology and equipment introduced by Chinese enterprises have helped Vietnamese factories automate the entire process from spinning and weaving to garment manufacturing, greatly improving production efficiency.
Post time: Sep-13-2024