Vietnam’s “Vietnam+” reported on June 22 that the Vietnam Textile and Apparel Association and the U.S. International Cotton Association (US.Cotton) jointly held a sustainable cotton supply chain seminar on June 21. . Representatives attending the meeting said that although the performance of textile and clothing exports in the first half of 2022 is good, it is expected that both the market and the supply chain will face many challenges in the second half of the year.
Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association, said that textile and apparel exports in the first six months of this year were estimated to be approximately US$22 billion, a year-on-year increase of 23%. This figure is impressive against the backdrop of difficulties posed by the long-term effects of the pandemic. This result is due to the 15 free trade agreements in effect, opening up a more open market space for Vietnam’s textile and apparel industry. From a country that relies heavily on imported fiber, Vietnam’s yarn exports will earn US$5.6 billion in foreign exchange in 2021, especially in the first six months of 2022, yarn exports have reached approximately US$3 billion.
Vietnam’s textile and garment industry is also developing rapidly in terms of green and sustainable development, turning to the use of green energy, solar energy, and water conservation to better meet international standards. Gain high trust from customers.
However, Wu Dejiang predicts that there will be many unpredictable fluctuations in the world market in the second half of 2022, which will bring many challenges to the export goals of enterprises and the entire textile and apparel industry.
Wu Dejiang analyzed that high inflation in the United States and Europe has led to skyrocketing food prices, which will lead to a decline in the purchasing power of consumer goods; among which textiles and clothing will decline significantly, affecting the third , enterprise orders in the fourth quarter. The conflict between Russia and Ukraine has not yet ended. Gasoline prices and shipping costs continue to rise, leading to an increase in production costs for enterprises. The price of raw materials has increased by nearly 30% compared with before. These are all challenges faced by businesses.
In response to the above problems, the company stated that it is actively paying attention to market dynamics and promptly adjusting production plans to adapt to the actual situation. At the same time, the company actively transforms and diversifies the supply of domestic raw materials and accessories, takes the initiative in delivery time, and saves transportation costs; at the same time, it regularly negotiates and finds new customers and new orders to ensure stable production activities.
