HCMC -Vietnam’s textile and garment industry generated US$30.2 billion in export revenue in the first eight months of this year, a 20% year-on-year increase, said a report of Vinatex.
Le Tien Truong, chairman of the board of directors of the Vietnam National Textile and Garment Group (Vinatex), said the localization ratio of textiles and garments reaches around 50%, but the first eight months of 2022 saw the rate rising to 57%, near the 60% target for 2025.
Vinatex’s report said that the export growth rate of nearly 20% for the first eight months is the highest of same period in 10 years.
According to data from the General Department of Vietnam Customs, imported materials and accessories for the industry totaled US$13 billion.
Despite being ranked fourth among the largest export earners, the textile and garment industry boasts the highest trade surplus, at US$20 billion in 2021 alone.
Compared to Bangladesh, India and China, Vietnam adapted to the new normal post pandemic the earliest, resulting in a surge in orders and an improved business performance.
Furthermore, Truong attributed the good performance to proactive policies implemented during the pandemic, such as the policy on wage and housing rent support for workers.
However, the global demand has plummeted due to the economic slump and runaway inflation.
“While textile and garment exports hit US$3.7-3.8 billion per month in the first eight months of the year, the value is expected to fall in the last four months of the year, at some US$3.1-3.2 billion a month,” said the Vinatex leader.