Illustrative image (Photo: baochinhphu.vn)To achieve the result, textile and garment enterprises have madegreat efforts to cope with the challenges of the market.
The enterprises did not depend on the five traditional exportmarkets, including the US, Europe, Japan, the Republic of Korea and China, butalso expanded the exports to Russia and some other countries.
In Europe, they not only focused on a few large export marketssuch as Germany, France, Spain and the UK as in the past, but also expanded theexports to other countries in the EU.
In addition, many businesses have eyed Mexico and other countriesin Africa.
They also promoted the production of knitwear products for exportinstead of making only traditional products such as jeans, khakis or T-shirts,due to a shortage of orders for those traditional products.
Among textile and garment exporting countries in the worldincluding Bangladesh, India and China, Vietnam had the earliest opening-uppolicy for normal operation after the COVID-19 pandemic.
Therefore, in the first six months of the year, Vietnam's textileand garment industry had a large number of orders and good business results.
Vu Duc Giang, Chairman of the Vietnam Textile and ApparelAssociation (VITAS), said in the first half of 2022, the textile and garmentindustry gained growth in export orders, but entering the third quarter of2022, the market began to see signs of a decrease.
The export order reduction was due to lower demand in major exportmarkets like the US and the EU. High inflation in those markets caused peopleto reduce their spending significantly. In which, apparel was a commodityseeing strong cuts.
Meanwhile, markets that are important trade partners of Vietnamsuch as China, Japan, and Taiwan are still applying strict measures against theCOVID-19 pandemic. That affected supplies of raw materials, auxiliary materialsand the consumption of textile products from Vietnam.
To cope with those challenges, businesses rearranged working hoursto ensure stability for workers.
Enterprises in the textile and garment industry are still able toovercome the challenges in the fourth quarter, but difficulties are likely tocontinue until the first quarter of 2023, Giang said.
Tran Nhu Tung, Chairman of the Thanh Cong Textile – Investment –Trading JSC, said almost all countries exporting textiles to the US and EUmarkets have experienced a decline in orders due to high inflation and lowerdemand for apparel products.
According to Tung, for companies focusing on these two markets,they faced a large decline in production and business. Meanwhile, firmsexpanding exports to other markets, like Thanh Cong, saw a softer decline thanothers.
Thanh Cong saw a reduction in orders larger than expectations, butit was not too much. In the first nine months of the year, the company hasfulfilled 80% of the revenue plan and 85% of the after-tax profit plan, hesaid.
Experts said that if in the first eight months of the year, theaverage export value per month was 3.7-3.8 billion USD, the value is expectedto be 3.1-3.2 billion USD per month in the last four months of the year.
According to VNDirect Research, the textile and garment industrywill be brighter in the first quarter of 2023 because the export tariffs onsome kinds of Vietnam's textile and garment products to the EU market will bereduced by 2-4% thanks to the EU-Vietnam Free Trade Agreement (EVFTA).
In addition, the European Commission forecasts inflation in the EUwill reach 8.3% in 2022 and fall to 4.3% in 2023. The lower inflation willstimulate demand for fashion and garments in 2023.
Therefore, some local garment enterprises exporting suits, shirts,pants and skirts to the EU such as Song Hong Garment, May 10 and Viet Tien,will enjoy more benefits from the EVFTA./.
VNA
