According to the president of the Vietnam Ho Chi Minh City Clothing, Textile, Embroidery and Knitting Association, many textile companies have received orders until June 2022, and some companies have even received orders until September 2022. Among them, orders from Chenggong Textile Company have been maintained until September 2022.
In addition, Textile Company No. 10 will only be able to digest orders in June 2022 because the demand in 2022 will increase significantly compared with 2020 and 2021. Vietnam’s textile industry has grown significantly since the end of 2021, and the industry will still maintain strong growth from January to February 2022.
The president of the Vietnam Textile and Garment Association said that Vietnam’s textile exports reached US$8.2 billion from January to February 2022, an annual increase of 59%. He estimates that the export value of this industry will reach US$12.7-12.8 billion in the first quarter of 2022.
Due to the preferential tariffs brought to Vietnam by the Vietnam-EU Free Trade Agreement and the Vietnam-UK Free Trade Agreement, enterprises in this industry will strengthen exports to the above-mentioned agreement countries. The Vietnam Chamber of Commerce and Industry Information Center stated that the industry’s export value reached US$39 billion in 2021, an annual increase of 11.2%, but exports to major markets have not recovered.
In addition, Vietnamese textile companies face very high logistics costs (an average increase of three times in the past five years). In addition, companies in South Vietnam face labor shortages. The region’s exports account for 40% of Vietnam’s textile industry production. Vietnam also faces strong competition from China, Bangladesh, India and other textile and clothing exports.
