Abundant orders, expected revenue increase 30-50%
As early as November 2024, Phuong Nam Garment & Trading Company Limited (Phuong Nam Garment Company) had full orders until the second quarter of 2025, mainly exporting to Russia and European countries. Workers were busy working overtime, the company planned production to meet orders for 2025. Talking to Lao Dong, Mr. Nguyen Van Hang - Director of Phuong Nam Garment Company confidently affirmed that the company's export ratio this year will grow strongly compared to last year. "It is expected that Phuong Nam Garment's export ratio this year will increase by about 30% compared to last year, and revenue will also increase by 30-50%" - Mr. Nguyen Van Hang shared.
According to Mr. Vu Duc Giang - Chairman of the Vietnam Textile and Apparel Association, textile and garment enterprises have made good use of free trade agreements, helping the industry recover quickly. Most enterprises in the textile and garment industry have orders for the first quarter of 2025 and are negotiating orders for the second quarter of 2025.
Besides traditional customers such as the US, EU, Japan, China, CPTPP (countries in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership), ASEAN countries, Vietnamese textiles have also exploited new markets such as Africa, the Middle East...
In 2024, Vietnam's textile and garment industry will reach the finish line with about 44 billion USD, growing about 11% compared to 2023 and rising to the second position among the countries exporting the most textiles and garments in the world. From now until the end of the second quarter of 2025, the garment industry will continue to recover. Enterprises also receive growth signals when major markets such as the US, EU, and Japan continue to recover, consumer demand increases, and inventories decrease sharply.
Many growth opportunities
According to economist Nguyen Minh Phong, the textile and garment market will grow better in 2025. Vietnam's textile and garment exports are expected to reach 45.5 - 46 billion USD, up 5-6% compared to 2024.
Major import markets such as the US and EU have recovered, consumer spending has improved, and global textile demand is estimated at 850 billion USD. The US increasing import tariffs on some countries will help Vietnam gain a competitive advantage if it complies with regulations on origin and supply chain traceability.
“In addition to the favorable geographical location, stable political situation, and increasingly complete infrastructure, the strength of the Vietnamese textile and garment industry is its young and abundant workforce. Although labor costs are no longer competitive, the sewing skills of Vietnamese workers are beautiful and good. Vietnam now has many companies that produce raw materials that meet the requirements of textile and garment enterprises and are also suppliers for major brands such as Adidas, Nike, etc. Many enterprises are also self-sufficient in making environmentally friendly fabrics,” Dr. Nguyen Minh Phong assessed.
He also said that in 2025, textile and garment enterprises will continue to face challenges. For example, order prices are low while input costs continue to increase. Brands have major changes in purchasing and payment methods, reduced output, strict criteria and standards related to "greening" in production, self-sufficiency in raw materials and labor standards, traceability and low carbon emissions.
In that context, in order for the Vietnamese textile and garment industry to achieve its goals by 2025, it is necessary to continue to seek orders, expand export markets, participate and actively operate in many large international organizations, and connect businesses with many international textile and garment organizations and associations.
In particular, implementing the Textile, Garment and Footwear Industry Development Strategy, from now until 2030, the industry will gradually shift from rapid development to sustainable development according to the circular economic model; perfect the domestic value chain and participate in a high-value position in the global supply chain.