Apparel / Textiles & Accessories

On June 21, the Vietnam Textile and Apparel Association and the US Cotton Association (US.Cotton) jointly held a seminar on sustainable cotton supply chain. Representatives at the meeting said that although the export performance of textiles and clothing in the first half of 2022 was good, it is expected that in the second half of the year, both the market and the supply chain will face many challenges.

Wu Dejiang, chairman of the Vietnam Textile and Apparel Association, said that in the first six months of this year, the export value of textiles and clothing was estimated to be about 22 billion US dollars, a year-on-year increase of 23%. The numbers are impressive against a backdrop of difficulties brought about by the long-term impact of the pandemic. This result is due to the fact that 15 free trade agreements have come into effect, which has opened up a more open market space for Vietnam's textile and garment industry. From a country that relies heavily on imported fibers, Vietnam's yarn exports will earn US$5.6 billion in foreign exchange by 2021, especially in the first six months of 2022, the yarn export value has reached about US$3 billion.

Vietnam's textile and garment industry is also developing rapidly in terms of green and sustainable development, turning to the use of green energy, solar energy, and water conservation, so as to better meet international standards and gain high trust from customers.

However, Wu Dejiang predicts that in the second half of 2022, there will be many unpredictable fluctuations in the world market, which will bring many challenges to the export goals of enterprises and the entire textile and garment industry.

According to Wu Dejiang's analysis, high inflation in the United States and Europe has led to skyrocketing food prices, which will lead to a decline in the purchasing power of consumer goods; among them, textiles and clothing will drop significantly and affect corporate orders in the third and fourth quarters. The conflict between Russia and Ukraine has not yet ended, and gasoline prices and shipping costs have continued to rise, resulting in higher production costs for enterprises, and raw material prices have risen by nearly 30% compared with the past. These are the challenges businesses face.

In response to the above problems, the company said that it is actively paying attention to the market dynamics and adjusting the production plan in time to adapt to the actual situation. At the same time, the company actively transforms and diversifies the supply of domestic raw materials and accessories, takes the initiative in delivery time, and saves transportation costs; at the same time, it regularly negotiates and finds new customers and new orders to ensure stable production activities.