Despite facing the impact of a global economic recession coupled with high inflation, leading to a sharp decline in the consumption demand and export orders, Vietnam’s garment, textile and footwear (GFT) sector was able to achieve double-digit growth in 2022.

The garment and textile sector achieved robust growth in the fourth quarter of 2021 as well as during the initial eight months of 2022.However, export orders recorded a significant drop in the fourth quarter of 2022, thereby leading to several businesses being forced to lay off their workers.

High inflation in the majority of major Vietnamese markets such as the United States and the EU will have an impact on the furniture, garment and textile, footwear, electronics, and plastics sectors, moving forward.

With a decline in the number of orders, the export market for the textile, garment and footwear industry is therefore forecast to remain quiet until the end of the first quarter of the year. As the major export industries of the national economy, the textile and footwear industry has decided to retain skilled workers, promote investment in the production of raw materials and auxiliary materials, focus on producing artificial fabrics, as well as encourage the production of domestic yarns.