Apparel / Textiles & Accessories

Huacheng Import and Export Data Observation reported that in the remaining 4 months of 2022, the Vietnamese textile industry is expected to reach only 3.1-3.4 billion US dollars per month, which is significantly lower than the average of the first 8 months of this year.

Le Chin Chang, chairman of Vietnam Textile and Garment Group, said at the recently held 2022 Economic and Social Development Forum: Due to the sluggish world economy and intensified inflation, the world market has suddenly become "cold" and demand has dropped sharply. In the first six months of this year, the U.S. economic inflation rate rose by 9% compared with June 2021, but textile prices fell by 9%, and inventories rose sharply, Watson & Band Data Observation reported.

According to import and export data, Vietnam's textile exports in the first 8 months of this year can be 3.7-3.8 billion US dollars per month, but it is estimated that only 3.1-3.2 billion US dollars per month in the last 4 months of this year.

On the other hand, Vietnam's macro economy is stable, the value of Vietnam's currency is relatively high, and the currencies of rivals India and China have depreciated by 8% and 9% against the US dollar, respectively, and Vietnam's export commodities are losing their price advantage.

In the first eight months of this year, Vietnam's textile and garment industry exported about 30.2 billion US dollars, an increase of nearly 20% year-on-year. This is a growth rate that has not been seen in more than 10 years, Huacheng Import and Export Data Observation reports.

In addition, according to customs import and export data, the import value of raw materials and accessories in the textile industry in the first eight months was only about 13 billion US dollars. The textile industry created a trade surplus of $17 billion.

In particular, the localization rate of the textile industry reached 57% in the first eight months of this year (higher than the annual average of 50%), approaching the goal of reaching 60% by 2025.

According to Mr. Li Jinchang's tracking of the market trend and the forecasts of domestic and foreign experts and institutions, the market trend in the last four months of 2022 and in 2023 is quite sluggish.