Despite growing demand for their textiles, Vietnamese textile firms fear, tight material supply might affect export plans. Vietnam is expected to export textiles worth $43.5 billion in 2022. The sector’s exports are expected to grow with top importers reopening economies. Vietnam’s textile exports are also expected to rise on account of various free trade agreements coming into effect, says Vietnam Textile and Apparel Association (VITAS).

However, Chinese Zero-COVID policy and the Russian-Ukraine war may disrupt supply chains, warns Than Duc Viet, Director, Garment 10 Corp. This may hamper the company’s ability to fulfill new orders, he adds. Than Duc Vet, Director, Garment 10 says, his company plans to diversify suppliers in the next five to ten years to be less dependent on China but it has to accept the situation and seek support from its partners in the short term.

Tran Nhu Tung, Chairman , Thanh Cong Textile Garment Investment Trading JSC., reveals, this company plans to substitute Korean and Thai materials or rely on domestic materials to deal with the shortages. According to the General Department of Customs, Vietnam’s textile exports grew 23 per cent to $8.8 billion in Q1 FY 2022, representing the highest quarterly growth in 10 years.

Vietnamese textile companies are urging the government to approve the Development Strategy for Textile and Footwear by 2030 to make the industry self-sufficient in material production and compliant with rules of origin as stated in free trade agreements, informs VITAS.