The sector generated $16.5 billion in total export value in 2022.

This has come amid reduced purchasing power in major export markets such as the US and EU, while in the domestic market, consumption has stood at a standstill due to a stagnant real estate market and a shortage of new developments.

In the same 10-month period, footwear exports stood at $16 billion, down $4 billion or just over 20 per cent on-year.

Businesses in the sector have estimated that even in the best-case scenario, footwear exports could reach $19 billion for the whole year, representing a decline of $4 billion compared to 2022.

The total export value of phone handsets and associated devices for the 10-month period came to $44 billion, down over $6.3 billion on-year.

Based on current projections, handset exports will be nearly certain to fall short of the $58 billion record set last year.

The Association of Seafood Producers and Exporters forecast the country’s total seafood exports to amount to just $9 billion in 2023, down 17 per cent on-year.

As for the garments and textiles industry, coming into 2023, state-owned Vietnam National Textile and Garment Group (Vinatex) had already anticipated a troubling year, with a 50 per cent reduction in pre-tax profit projections compared to 2022, falling to $25.7 million, while its revenue target was set 11 per cent lower at $738.4 million.

Even still, the first nine months of this year saw Vinatex achieve just 40 per cent of its full-year profit target, and 71 per cent of its full-year revenue target.

As a result, in early November, Vinatex shareholders approved a scaling down of its full-year business targets, with consolidated revenue dropping 6 per cent to $696 million, and pre-tax profit shedding 39 per cent to just $15.6 million.

Do Thang Hai, Deputy Minister of Industry and Trade said, "Production output often far exceeds domestic market requirements, particularly for sectors such as garments and textiles, footwear, and electronics where up to 90 per cent of production is for export."

"So, when the global markets are experiencing a slowdown, this can have a severe and immediate impact on Vietnam's production and export activities," added Hai.

Source: VIR