HCMC – Despite a drop in garment and textile export orders in the third quarter and a possible continued decrease in the rest of the year, Vietnam will still achieve the full-year export target of US$44 billion.
Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS), was speaking about the export prospect of the sector at a news briefing on Cotton Day Vietnam 2022 in HCMC on September 30.
The first six months saw high garment and textile export value, but it declined in the following three months.
The global demand for textile and garment products is forecast to fall sharply in the final quarter, especially in markets such as the U.S. and EU. Due to runaway inflation in these markets, consumption has ebbed significantly.
Other key export markets, such as China, Japan and Taiwan, maintain strict Covid measures, affecting the demand for Vietnam’s textile products.
One more challenge is the requirements for origin tracing toward cotton, material and fiber and for environmental protection in the new-generation free trade agreements.
In the first nine months, the sector’s exports reached around US$35 billion, a year-on-year increase of 21%.
Thanks to the FTAs to which Vietnam is a signatory, the sector’s average monthly export value still reached US$3.8-4 billion, so its 2022 target of US$44 billion can be attained at the end of the year.
However, input materials of the textile and garment sector, especially cotton, need to be green and sustainable.
Giang said the UFLPA of the U.S. would impact Vietnam’s textile and garment sector. Since the first quarter of 2022, some U.S. brands have ceased placing orders with Vietnamese enterprises whose materials came from China.
To minimize the impact of the UFLPA, a representative of VITAS said that Vietnamese textile and garment producers should ensure the transparency of their supply chains.
Cotton Day Vietnam 2022 will be held in HCMC by the U.S. Cotton Council International in collaboration with VITAS on October 4, featuring over 200 textile and garment enterprises in Vietnam.
This annual event aims to provide updates on the textile and garment industry.