Update news textile and garment
Experts have warned that without thorough preparation for global integration, Vietnam will turn into a playing field for imports from all over the world.
The Ministry of Industry and Trade confirmed that Vietnam will rise to the third largest export of clothing in the world at the conference to connect the supply and demand of raw materials for Vietnam's textile and garment industry.
Vietnam has surpassed the Republic of Korea to become the world’s sixth largest fibre and yarn exporter after shipping abroad 2.37 billion USD worth of these items in the first five months of 2022.
Although textile export was riding high in the first half of the year with a growth of 23 per cent, insiders are pessimistic that the rest of 2022 will match up.
If local manufacturers do not afford changes in line with sustainable and greener production, better energy conservation and higher responsibility to the environment, global clothing brands may no longer place orders to the former.
Fabric and input materials remain the weakness of Vietnam’s textile and apparel industry.
Enterprises say they need a standard anti-pandemic process for specific cases to organize production and ensure uninterrupted supply chains.
The effectiveness of free trade agreements, especially the EU– Vietnam Free Trade Agreement, has helped to increase export orders for textile and garment enterprises in Vietnam,
Vietnamese textile and garment enterprises have received orders for the end of April 2021.
Once JCPenney files for bankruptcy, hundreds of textile and garment stores, including those in Vietnam, will have to cease and desist orders.
Analysts say that Vietnam will be able to ease reliance on some trade partners because of the EVFTA.
The input material supply from China ha resumed, but some American and European buyers have asked to delay deliveries for the orders they had previously placed.
The number of garment orders for the next two months has decreased by 70 percent, while wooden furniture enterprises have cut capacity by 70 percent for next week. Automobile manufacturers have closed factories.
TNG Investment and Trading JSC (TNG) and Thanh Cong Textile Garment Investment JSC (TCM) are expected to benefit the most from the EU-Vietnam FTA (EVFTA), according to Bao Viet Securities.
In mid-March, when Chinese factories began resuming operation, material supplies to Vietnamese textile and garment enterprises were restored.