According to the latest data from the Vietnam Textile and Garment Group (Vinatex), in the first five months of 2024, Vietnam's textile and garment exports amounted to nearly US$16 billion, up 5 percent year-on-year.
It is worth mentioning that according to this data, Vietnam has surpassed China to jump to the top of the US apparel export market share and has the fastest growth rate among the world's top three textile exporters. This achievement is not only due to the continuous efforts and innovations of Vietnam's textile industry, but also reflects the subtle changes that are taking place in the global textile supply chain.
Orders from other countries shifting to Vietnam
Among the bright spots in Vietnam's exports to the US market, Vietnamese textile and apparel jumped to the top of the apparel export market share at $6 billion, up 4% year-on-year. As a result, Vietnam has surpassed China and ranked first among the world's top three textile and garment exporters in terms of growth rate.
This change is no coincidence. In the past few years, with changes in the international trade situation and adjustments in global consumer demand, orders from many countries have begun to shift to Vietnam. In recent years, although Vietnam's senior leadership frequent corruption problems, stable foreign preferential policies basically no ripples, Vietnam with its cheap labor resources, and flexible production model, successfully attracted a large number of orders, especially from the United States.
Vinatex believes that this growth was not due to improved global consumer demand. The shift of orders from other countries to Vietnam and the exchange rate advantage when the Vietnamese dong depreciated by 5% against the US dollar were the main reasons for the poor improvement in global consumer demand. Nonetheless, Vietnam's textile industry still faces many challenges, such as rising production costs and increasing transportation costs.
In the face of these challenges, Vietnam's textile industry has shown great resilience and adaptability. Many enterprises in the fiber industry have begun to flexibly shift to new products such as blended yarns and recycled yarns in order to find new growth points outside the traditional cotton market. At the same time, units are actively seeking and developing new markets to reduce dependence on traditional markets.
Vietnam converts products to increase exports
In addition, Vietnam's textile industry has stepped up efforts to develop new technologies and products. Taking Vinatex as an example, the group has cooperated with the UK's Coats Group to produce fire-resistant fabrics, which is not only an attempt by the group to enter the field of narrow products, but also an active exploration of new technologies and new markets. This kind of strategic vision and innovation will give new impetus to the future development of Vietnam's textile industry.
Demand in Vietnam's major textile and garment markets is not expected to improve better than expected in the last six months of the year, while the currencies of competing countries may depreciate by 15-20%. Against the backdrop of rising production costs, Vietnamese enterprises will face pressure to compete on price. Transportation costs, wages, electricity, bank interest rates ...... are expected to continue to increase, which will have a direct impact on the production and business performance of enterprises.
However, Vietnam's textile industry remains confident.Mr. Cao Huu Hieu, General Director of Vinatex, said that the outlook for textile and apparel in 2024 is brighter than that of 2023. He firmly believes that driven by the market, Vietnam's textile industry will continue to grow strongly and take a more important position in the global textile industry.
In short, the rise of Vietnam's textile and apparel industry in the global market not only highlights the strength and innovative spirit of Vietnam's textile industry, but also injects new vitality into the development of the global textile industry. For China's textile industry, the rise of Vietnam is undoubtedly an incentive to inspire us to be more determined to move forward, actively meet this challenge, and contribute more to the development of the global textile industry. We will be more open-minded, dig deep into the textile industry in high-quality, high-tech products, and constantly improve their competitiveness to promote the prosperity and development of the global textile industry.
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