Vietnamese apparel firms expect global demand to decrease by nearly five percent this year.

This may result in a 25 per cent decrease in the number of orders. Major importers of Vietnamese apparel such as the US, China and Korea have reduced demand since October 2022. Demand from the European Union and Japan is still maintaining positive growth but lower than what was in earlier months.

In the near future, some 35 percent of apparel makers in Vietnam may suffer from a shortage of orders while the remainder may face price pressures. The sector is facing competition from countries like Bangladesh, India and Indonesia.

In the meanwhile Vietnamese apparel firms have been busy so far this year completing orders on the back of incentives brought about by free trade agreements that have already taken effect. The sector is still able to produce mid and high-end products, which is seen as one of the ways to accelerate exports. Businesses also plan to invest in modern technology to improve business efficiency and workers’ income. In order to achieve sustainable development, the sector will continue calling for investment to the material supply chain, building sale solutions, and developing automation, digital governance, a transparent business environment and a high-quality workforce.