Will textiles reach the export target of 44 billion USD?

(PLVN) - Vietnam's textile and garment export turnover is recovering in line with the recovery of the world economy . Many predictions show that this year, Vietnam's textile and garment sector is likely to "reach the finish line" with an export target of 44 billion USD.

Positive market signals

The latest statistics from the General Department of Customs show that as of October 15, 2024, the total export turnover (KNXK) of Vietnam's textile and garment industry reached about 31 billion USD. Total data for September showed that the export turnover of this industry in September 2024 reached 2.98 billion USD, down 26.5% compared to August 2024, but up 16.0% compared to September 2023. In the first 9 months of 2024, textile and garment products reached 27.34 billion USD, up 8.9% over the same period in 2023.

The Center for Industry and Trade Information (CITIC) stated that in the first 9 months of 2024, Vietnam's textile and garment export turnover increased by 8.9% over the same period in 2023, showing that textile and garment export activities are improving positively, as the growth rate is expanding compared to the first months of the year. In particular, key export markets such as the United States, Japan, South Korea and China still maintain growth; ASEAN markets, Russia, Canada... are potential bright spots for businesses to promote production and export of textiles and garments; however, exports to Europe (EU) are still slow.

Notably, in September 2024, the import of raw materials and accessories of the Vietnamese textile and garment industry reached 2.34 billion USD, down 0.73% compared to August 2024 but up 15.49% compared to September 2023. In the first 9 months of 2024, the import of raw materials and accessories for the textile and garment industry is estimated to reach more than 20.38 billion USD, up 14.71% compared to the first 9 months of 2023 and up 13.25% compared to the same period in 2019 (before the outbreak of Covid-19). According to the Center for Trade and Industry, this is the time when the import value of all kinds of textile and garment materials and accessories of the whole country has increased the most in many months. In particular, the import of raw materials and accessories all grew quite well compared to the same period last year, especially cotton imports increased slightly by 2.32%, which proves a significant improvement in orders in the coming time.

Meanwhile, at present, the order signal of domestic textile enterprises is quite positive. Vietnam is the only country among the 4 largest textile exporting countries in the world with growing market share in countries. In particular, the US market increased from 17.6% to 18.3%; although textile imports in Europe decreased by about 5.5%, Vietnam's textile exports still maintained a market share in this market of about 4.4%, ...

Mr. Cao Huu Hieu - General Director of Vietnam Textile and Garment Group (Vinatex) also said that most of the major export markets of Vietnam's textile and garment industry have shown positive signs of recovery. For example, in the US, inflation in August 2024 was at 2.5% year-on-year, the lowest level since March 2021; retail sales in August also increased by 2.11% year-on-year. The European economy is also gradually being controlled close to the target, inflation in August was at 2.4%, the lowest level since June 2021; retail sales increased slightly. For the Japanese market, GDP in the second quarter of 2024 increased by 2.9% year-on-year, up 7% compared to the previous quarter, although inflation remains high, household spending tends to increase slightly...

Orders will continue to be abundant.

It is forecasted that Vietnam's textile and garment exports will continue to improve in the last months of the year and early 2025, thanks to cyclical factors and abundant orders. Of which, exports to Vietnam's key export markets such as the United States, Japan, South Korea, and China are recovering well, while the export growth rate in the EU will remain weak.

Specifically, according to Mr. Hieu, the garment export market in the first 9 months of the year has recovered due to the shift of orders from China, Bangladesh, Myanmar to Vietnam. Inventory in key markets such as the US, Europe, and Japan has tended to decrease compared to the same period last year, combined with an increasing purchasing power, creating a recovery in demand for orders from partners. It is expected that garment orders in the fourth quarter of 2024 and the first quarter of 2025 will continue to be abundant, but unit prices have not improved significantly.

Data from the Center for Technology and Trade also shows that the inventory reduction of major fashion brands in the world was quite positive in the second quarter. Accordingly, Nike decreased by 11%, Levi's decreased by 7%, the business results as well as the profits of the brands improved at a fairly sustainable level. The two fashion brands with the most outstanding profit growth were H&M with profit growth of about 49%, Uniqlo about 36%. From there, it shows that the signal will be more positive in the coming months and textile and garment enterprises are placing high hopes on the order price to improve and business will be more effective than last year.

The representative of the Center for Industrial and Trade Market said that with positive signals from the market, the export target of 44 billion USD in 2024 of the Vietnamese textile and garment industry can be achieved. However, the textile and garment industry still faces many challenges due to the lack of stable improvement in market demand, sea freight rates, production costs... are forecasted to continue to increase, directly affecting production and business performance.

Source: https://baophapluat.vn/det-may-se-dat-muc-tieu-xuat-khau-44-ty-usd-post531483.html