According to a representative of Vinatex, with the experience gained through the storms of the previous two years, the Vietnamese Textile and Garment industry is expected to achieve an export turnover of 43.5 billion USD this year.
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In 2004, with an export turnover of about 43.5 billion USD and an 11% growth compared to the previous year, Vietnam ranked second in the world , just behind China in total textile and garment export turnover.
The above information was given by the leaders of Vietnam Textile and Garment Group (Vinatex) at a press meeting held on December 25, 2024, in Hanoi .
Accelerate exports
Citing statistics, Mr. Hoang Manh Cam, Deputy Chief of Office and Spokesperson of Vinatex, said that Vietnam is having the best textile export growth rate among the world's textile exporting powers.
Specifically, by the end of 2024, textile and garment exports could reach 43.4-43.5 billion USD, a double-digit growth. This is also an outstanding result of the Vietnamese textile and garment industry when placed in the context of exports of many countries showing signs of slowing down, even decreasing.
Vinatex representative cited that right after Vietnam is India, whose textile and garment exports only grew by 6.9-7%, although it is a country with product lines and geographical advantages very close to Bangladesh, so it will be the country that benefits the most from the trend of shifting orders from Bangladesh in the past year.
As for China, after 11 months, textile and garment exports earned about 273.4 billion USD, up 0.2% over the same period last year. However, for garments, China only exported 144 billion USD (down 2.8%), while textiles (China's strength) exported 129 billion USD, up 3.7%.
According to Mr. Cam, Vietnam's strongest "competitor" is Bangladesh (according to data compiled by the Central Bank of Bangladesh). After 10 months, the country's textile and garment exports decreased by 3.7% compared to the same period last year, and the country's exports only earned 27.7 billion USD. Thus, each month the country exports from 2.8 to 3 billion USD, a sharp decrease compared to the peak in 2022 (exports of over 4 billion USD each month).
However, the representative of Vinatex also emphasized that the above results may only last for a period of time, because through monitoring in the US and EU, Bangladesh's exports are recovering in market share in September and October, so it is likely that Bangladesh will soon recover textile exports (if following the normal scenario, it will recover after the second quarter of 2025), at which time fierce competition will return.
"With preferential tariffs for underdeveloped countries, Vietnam is at a disadvantage due to labor costs in the textile industry being nearly three times higher than in Bangladesh, so it is necessary to closely monitor to come up with more solutions," Mr. Hoang Manh Cam recommended.
Meanwhile, for other countries such as Sri Lanka and Türkiye, although they have benefited from the shift of orders from Bangladesh in recent times, especially Türkiye whose main market is Europe and Bangladesh whose main export is to Europe, the textile exports of these two countries are not large and the export scale as well as competitive advantages are not equal to Vietnam.
“It is forecasted that in the first half of 2025, the garment industry will continue with the momentum of the end of 2024 and will have some better growth signals when some major markets such as the US and EU have positive economic recovery, as well as people's income and consumer spending improve after the interest rate cut roadmap continues,” Mr. Hoang Manh Cam forecasted.
Invest in new, differentiated products
Looking back at 2024, Mr. Cao Huu Hieu, General Director of Vietnam Textile and Garment Group (Vinatex) further assessed that in the context of the world situation continuing to fluctuate unpredictably, conflicts escalating in many regions; gasoline prices, transportation costs fluctuate strongly, economic and trade recover slowly, natural disasters, climate change, energy security are complicated; labor shortage and competition in production centers and large industrial parks cause many difficulties for businesses in organizing production, but the Vietnamese Textile and Garment industry still maintains a good growth rate.
“With the experience gained through the storms of 2022 and 2023, the Vietnamese Textile and Garment industry is expected to achieve approximately 44 billion USD in exports, an increase of nearly 11% compared to 2023,” said Mr. Cao Huu Hieu.
Vinatex CEO also commented that in general, the world textile and garment market will begin to show signs of recovery from mid-2024 when major central banks such as the FED and ECB have cut operating interest rates and employment and people's income have improved.
Meanwhile, it is estimated that in 2024, the total global textile and garment demand will reach about 794 billion USD, an increase of nearly 3% compared to 2023, but still 8% lower than in 2022. For the Vietnamese textile and garment industry, although the market has improved in the first 6 months of 2024, it is still the difficult and quiet streak of 2023. In the last 6 months of the year, orders to Vietnam increased dramatically due to unexpected political fluctuations in competing countries.
Faced with new market developments, Mr. Cao Huu Hieu said that the Vietnam Textile and Garment Group has promoted many solutions to maintain and promote production and business activities, and welcome the return of orders, in which the garment industry has maintained its growth momentum with production and business efficiency clearly improved from the third quarter of 2024, with no unit suffering losses in 2024. The fiber industry has reduced losses by 90% compared to 2023, but still faces prolonged difficulties leading to ineffective production and business.
“With determination and many positive innovations in operations, improving competitiveness and labor productivity in the entire system, Vinatex has preserved its core resources of labor and customers, overcoming difficulties in 2024 with consolidated revenue estimated at VND 18,100 billion, equal to 102.8% compared to 2023; Consolidated profit estimated at VND 740 billion, equal to 137.5% compared to 2023; Average income reached VND 10.3 million/person/month, equal to 108.9% compared to 2023,” Mr. Cao Huu Hieu informed.
Vinatex focuses on researching and investing in new products with unique characteristics in the spirit of innovation.
In particular, in 2024, Vinatex will continue to promote the implementation of the supply chain development strategy to become a complete destination, putting the Vinatex Product Development and Fashion Business Center into operation on the basis of consolidating the Vinatex Fashion Business Center; Exploiting new markets and niche markets with special, high-tech products such as fire-resistant fabrics and clothing (Business cooperation with COATS Group, UK), researching and developing new types of Filament core yarns and blended yarns; Thoroughly deploying the enterprise resource planning system on a digital platform (ERP).
In addition, the group also continues to implement sustainable development activities in textile enterprises to meet greening requirements such as: directing investment in additional wastewater treatment plant No. 2 with a capacity of 8,000 m3/day and night next to wastewater treatment plant No. 1 with a capacity of 10,000 m3/day and night for the textile dyeing industry at Pho Noi Textile Industrial Park, Hung Yen, aiming to build a model green textile industrial park in the Northern region...
In order to prepare for the new era, Mr. Cao Huu Hieu informed that Vinatex will focus on a number of pillars, including rebuilding the overall competitiveness of the entire system, focusing on training and fostering, and using high-level human resources to lead other units.
“The Group will continue with the one-stop strategy, greening the Group’s products; investing in automatic, high-tech equipment but associated with green economic and circular economic factors and researching and investing in new products with a distinctive character in the spirit of innovation. In particular, an indispensable factor leading the Vietnamese textile and garment industry is solidarity and mutual support,” Mr. Cao Huu Hieu emphasized./.
According to VNA
Source: https://baobinhduong.vn/vuot-qua-doi-thu-xuat-khau-det-may-viet-nam-vuot-len-vi-tri-thu-2-the-gioi-a338478.html
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