Despite positive results in the first half the year, Vietnam’s garment and textile exports are likely to encounter a host of challenges in terms of market and supply chain in the second half, said Vu Duc Giang, Chairman, Vietnam Textile and Apparel Association (VITAS) at a seminar organized in collaboration with the Cotton USA. Vietnam’s textile and garment exports will grow 23 per cent Y-o-Y to $22 million with FTAs including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CTPP), Giang says. This has boosted the domestic industry over the past five years with its regulations on product origin, he said.
Vietnam exported $5.6 billion worth of yarn last year and $3 billion in the first half of this year as investments in new technologies and digital management The sector has also shifted towards green energy and water resources, thus better meeting international standards and winning confidence of customers, Giang added.
However, escalating inflation in the US and Europe would affect orders in the third and fourth quarters of the year. The ongoing Russia-Ukraine conflict, along with surging oil and gas prices and transportation costs, would also push up production prices, Giang noted.
Than Duc Viet, General Director, Garment 10 Corporation added, the adverse impact of COVID-19 can be seen in the disruption of supply chain and logistics services. Given this, domestic enterprises said they have kept a close watch on the market to adjust their production plans, diversified material supplies, and sought new clients to maintain production.