Vietnam's textile and garment exports are recovering well. In the first 7 months of 2024, the country's garment exports increased by 4.87% compared to the same period in 2023 and increased by 8.26% compared to the same period in 2019. Notably, Vietnam's garment exports to the US market for the first time in many months have slightly recovered compared to the period before the COVID-19 pandemic . This is a positive signal for exports to the US market in particular and Vietnam's textile and garment exports in general.
It is forecasted that the country's exports of this item will recover better in the coming months. There are many grounds for this expectation.
One reason for this is the abundance of orders. Most garment companies have enough orders to produce until the end of the third quarter of 2024 and continue to negotiate and sign contracts for the fourth quarter of 2024 - the peak production season for Christmas and New Year orders.
Vietnam's textile and garment exports to major markets such as the US, EU, and Japan are recovering well.
Inflation in major economies is also well controlled, helping to increase purchasing power. Brand inventories in 2023 have decreased, and some textile and garment enterprises have now, through associations and industries, sought smaller companies to outsource orders.
In addition, Vietnamese textile and garment enterprises have recently proactively diversified their markets and customers.
Fashion businesses in the United States and neighboring countries are looking for supplies from supply chains outside of China, so products from Vietnam are gaining attention, with the trend of looking for sustainable products increasing.
A recent survey by the United States Fashion Association (USFIA) on the competitive advantage of textile and garment exporting countries to the United States shows that Vietnam has a higher total score than China and Bangladesh as businesses are shifting suppliers away from China. Therefore, in the long term, the market share of the Vietnamese textile and garment industry is expected to continue to expand in this market.
The survey results also show that, compared to other textile exporting countries, Vietnamese textile enterprises have an advantage thanks to their geographical location, large port system, and ability to produce a variety of high-value products such as vests, winter coats, swimwear, etc. with rich designs and fast delivery. However, in the long term, if other countries catch up with production capacity, the Vietnamese textile industry will face many challenges.
To avoid this possibility, businesses need to focus on boosting technology investment, optimizing production and supply processes, and deeply participating in the OBM (original brand manufacturing) or ODM (original design manufacturing) value chain to create sustainable competitive advantages compared to other countries.
Imports of raw materials and accessories are increasing at the highest level, showing a positive outlook for export activities. In July 2024, imports of raw materials and accessories of the Vietnamese textile and garment industry reached 2.41 billion USD, up 9.46% compared to June 2024 and up 25.8% compared to July 2023. In the first 7 months of 2024, imports of raw materials and accessories of the textile and garment industry are estimated to reach more than 15.83 billion USD, up 15.65% compared to the first 7 months of 2023 and up 10.43% compared to the same period in 2019.
Production activities of enterprises have also improved. According to the General Statistics Office, in the first 7 months of 2024, the textile production index increased by 12.4% over the same period in 2023; the national garment production index increased by 6.2% over the same period in 2023.
In addition, the current average lending interest rate of banks is at an attractive level. Unpredictable developments such as the Russia-Ukraine military conflict, instability in the Black Sea and Red Sea regions, etc. are all taken into account by businesses in their business plans and are no longer a surprise factor...
