Vietnam’s garment and textile sector may struggle to reach US $ 40 billion!

by Apparel Resources News-Desk

18-October-2019  |  2 mins read

Garment factory in Vietnam
Image Courtesy: logisticsofthings.dhl

Vietnam’s garment and textile export in the first 9 months of 2019 has clocked US $ 27.7 billion and going by the current trend, Vinatex predicts the numbers will touch US $ 39.6 billion by the end of the year.

Now if that happens, then it will be 9.8 per cent increase from what it was in 2018.

But that will also mean that the industry will fail to achieve its projected export target of US $ 40 billion.

Lack of long-term orders seems to have taken its toll on the industry.

From the beginning of this year, many customers of Vietnam’s apparel firms have been disinterested in long-term orders, as they have been closely studying the ongoing trade war between the economic giants.

In fact, the orders have tended to move to countries like Bangladesh and Cambodia, which offer tariff benefits. It is imperative to note that the recently signed free trade agreement between EU and Vietnam is yet to fully come into effect.

The fibre and raw material consumption has been severely impacted owing to China slashing import volume. And it is not just fibres, garment orders too have been hit badly.

Last year, by June, many apparel companies were booked till the end of the year, but this year it’s been a different story as many firms have received only monthly orders and that too with small volume.

A little over 2 months to go and it needs to be seen what exactly would be the final export numbers!

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