Despite a decline in export revenue, textile and garment products manufactured in Vietnam reached 104 countries and territories this year, marking the highest number of export markets to date, according to Vũ Đức Giang, Chairman of the Vietnam Textile and Apparel Association (Vitas). Giang noted that this achievement reflects companies’ efforts to diversify markets amidst reduced consumption demand in major markets due to the global economic slowdown. The estimated export value for the garment and textile industry this year is $40.3 billion, representing a 9.2% decrease compared to the previous year.
Giang highlighted the resilience of the industry, pointing out that despite challenges, the export landscape has expanded to include regions such as Africa, Russia, and India. He anticipates an improvement in orders in the last quarter of the year, driven by increased consumption ahead of Christmas and the Solar New Year holidays. While uncertainties persist in the global economy, Giang expects the recovery trend to continue into 2024.
The United States remains the largest export market for Vietnamese textile and garment products, with a revenue of $11 billion in January to September. Other significant markets include Japan ($3 billion), the Republic of Korea ($2.4 billion), the EU ($2.9 billion), Canada ($850 million), China ($830 million), and Cambodia ($600 million).
Giang acknowledged the challenges posed by increasing requirements from import markets related to human rights, environmental protection, rules of origin, recycling, and waste treatment. Vietnamese producers are actively working on greening production, investing in infrastructure to reduce emissions, adopting technology for environmentally friendly and durable products, and advancing digitalization.
Despite challenges, the garment and textile industry in Vietnam continues to benefit from free trade agreements (FTAs). Vietnam is the only country with FTAs with major economies, including the US, Japan, China, the EU, the UK, and Russia. The recently approved development strategy for the garment and footwear industry until 2030 provides a solid foundation to attract foreign investments in fiber, weaving, and dyeing. Giang encouraged the industry to leverage FTAs, establish value chains, build brands, and focus on diversifying export markets while promoting sustainable development aligned with greening, emissions reduction, labor transparency, and production transparency requirements. The association has set a goal of achieving $44 billion in export revenue by 2024.
