Production at Tinh Loi Garment Company in Hai Duong Province. The garment and textile export market is expected to reach the target of US$44 billion this year. - Vietnam News
HANOI: The garment and textile industry expects to see robust growth in the second half of this year, with rising orders and improving consumer demand.
Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association, said that many enterprises have orders for October and November, pinning their hopes for stronger growth in last months of this year to fulfil the export target of US$44 billion for the full year.
Major markets for garment and textile products, such as the US and the EU, are seeing economic recovery, while inflation appears under control, which helps improve purchasing power. Inventories of brands are dropping sharply.
Most garment companies have orders for production to the end of the third quarter and gearing up negotiations for new orders for the last quarter – the peak season for a consumption spike ready for the Christmas and New Year holidays, Cao Huu Hieu, director general of the Vietnam National Textile and Garment Group, said.
Hieu forecasts that garment and textile exports will increase by 8-10 per cent in 2024.
However, garment companies are facing numerous challenges, Giang said. Orders tend to be smaller with shorter lead times and there are also stricter regulations for green and sustainable production to be able to export to markets like the EU and the US.
One of the challenges also comes from a labour shortage. It is estimated that the garment and textile industry needs around 500,000 more workers.
The association urged garment companies to renovate technology and equipment, as well as apply automation to improve quality and productivity.
Focus also needs to be on selecting environmentally friendly raw materials to keep up with the trends of sustainable fashion and a circular economy, while diversification in the market is also important, Giang said.
Garment and textile exports were estimated to reach US$16.282 billion in the first half of this year, rising by 3 per cent over the same period last year. — Vietnam News/ANN
