The garment and textile industry in Vietnam anticipates significant growth in the latter half of this year, driven by increasing orders and rising consumer demand.
Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association, revealed that many companies have secured orders for October and November. This optimism is aligned with the industry’s goal of reaching an export target of US $ 44 billion for the year.
Key markets, including the US and the EU, are experiencing economic recovery and controlled inflation, boosting purchasing power. Brand inventories have sharply decreased, indicating improved market conditions.
Cao Hữu Hiếu, director general of the Vietnam National Textile and Garment Group, noted that most companies have orders lined up until the end of the third quarter and are negotiating new orders for the last quarter, which is a peak season due to Christmas and New Year holidays. Hiếu predicts an 8-10 per cent increase in garment and textile exports in 2024.
Despite these positive signs, the industry faces several challenges. Giang highlighted issues such as smaller order sizes, shorter lead times, and stricter regulations on green and sustainable production for markets like the EU and the US. Additionally, a significant labour shortage persists, with the industry needing approximately 500,000 more workers.
The association emphasises the need for technological upgrades, automation, and the use of environmentally friendly materials to improve quality and productivity. Diversifying markets is also crucial for sustaining growth. In the first half of this year, garment and textile exports reached US $ 16.282 billion, a 3 per cent increase compared to the same period last year.
Apparel Resources News-Desk.
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