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.

Stagnant business and production activities as a result of the impact of Covid-19, increased pressure over delivery to partners, and high transport costs are threatening the supply chains of the apparel sector.

With many local textile-garment makers unable to confirm when they can resume operations, many of their foreign business partners are switching orders from Vietnam to other countries.

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.

Textile and garment companies have made big strides in the industry for the past decade, but 2020 was a challenge.

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.

Following Zara and H&M, Uniqlo has arrived in Hanoi following its earlier opening in HCM City.

Textile and garment companies are facing double problem: they find it difficult to import input materials and cannot export their goods.

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.

Although the free trade agreement between the EU and Vietnam will offer great opportunities for wood investors and exporters, its rules of origin may not provide a big boon to local textile and garment businesses.