Vietnam is facing a reduction in export orders. This applies especially to the textile, garment and footwear industries. Orders are waning in key markets.

They are down some 60 per cent in Europe and 30 per cent to 40 per cent in the US market. Though orders are coming in from Canada and Australia, they have not been able to offset the decline from the US and European markets.

This trend is likely to continue, with orders likely to decline further in the coming months. Many businesses have had to reduce the number of workers and production has been scaled down in the last months of 2022.

Enterprises are diversifying markets in the context of shrinking export markets and falling demand. Businesses are improving their competitiveness to take full use of the advantages brought about by free trade agreements. So the textile and footwear industries have to develop appropriate production and business development plans in the coming time.

Vietnam’s exports to China, South Korea, Japan, the US, and Europe have showed a steep drop because of weaker purchasing power due to rising inflation and uncertainties especially the Russia-Ukraine conflict and material price fluctuations. The exchange rate is expected to continue to drop in the second half of 2022, negatively affecting businesses, particularly those with high expenses calculated in dollars.