Vietnamese exports recover in 2024, but still face challenges

Export turnover of Vietnam’s textile and garment sector year-to-date had reached US$12.8bil. — Vietnam News

HO CHI MINH CITY: Vietnam’s exports to key markets in the first five months of the year increased by 15% over the same period last year, with textiles, furniture and household appliances leading the recovery.

Ta Hoang Linh, director of the European-American Market Department under the Industry and Trade Ministry, said that export turnover of Vietnam’s textile and garment sector year-to-date had reached US$12.8bil, up 7.4% over the same period.

The footwear and handbag sector reached nearly US$7.9bil, an increase of 7.3%.

Wood and wood products accounted for a large proportion of the furniture and household appliances industry, reaching US$4.9bil, an increase of more than 25% compared to last year.

Duong Thi Minh Tue, a member of the Handicraft and Wood Industry Association of Ho Chi Minh City, said that possible cuts in US interest rates could stimulate consumer demand and demand for imports even more.

The European market is also emerging from a recession and with inventory running out, demand has begun to increase again. Many Vietnamese wood industry enterprises have orders until the end of 2024, she said.

Regarding the textile sector, deputy president of Vietnam Textile and Apparel Association Tran Nhu Tung said that the target export turnover of the textile and garment industry in 2024 was set at US$44bil.

Through the first five months of the year, the orders for textile and garment enterprises had improved.

Vietnamese fashion products had many competitive advantages in product quality and the ability to meet strict labour and environmental requirements.

More importantly, Vietnam’s textile sector is taking advantage of the many combined incentives of 16 bilateral and regional free-trade agreements.

In addition, these countries were continuing to promote strategies to diversify sources of supply, supply chains and investments, with Vietnam’s exports playing an important role in global production and value chains.

However, many businesses are facing difficulties because key export markets such as the United States, European Union, north-east Asian countries or Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) countries were increasingly setting new and more stringent standards such as environmentally friendly, sustainable development and circular production criteria.

Export products need to meet higher requirements on material traceability, safety certification, business reporting, as well as regulations on forest management and chemical use.

To be able to meet the requirements of these markets, Vietnamese businesses need to modernise production lines and apply the circular-economy model. — Viet Nam News/ANN

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