According to Vietnam’s “Customs Online” report on November 17, since the implementation of Vietnam’s Resolution 128, international brand owners’ confidence in Vietnam’s textile processing industry has rebounded, and textile processing orders are gradually moving towards Vietnam market returns.
Reports indicate that previous reports that international brands such as Nike and Adidas would move their factories out of Vietnam are not true. In August and September, due to long-term social isolation measures, many factories in Vietnam were unable to deliver goods on time, resulting in the transfer of some orders, with the transfer ratio being about 13-14%. Vu Duc Giang, chairman of the Vietnam Textile Association, said that the loss caused by the transfer of orders to the ordering companies is huge, including transportation costs of raw materials from Vietnam to new production locations, organization of production costs, evaluation costs and many other expenses. Previously, Nike was under pressure due to insufficient production capacity of its OEM factory in Vietnam. However, considering the various expenses mentioned above, Nike did not choose to transfer orders externally.
Reports say that in addition to continuing to maintain their original orders in Vietnam, international brands have begun to place orders for the spring of 2022. The Vietnam Textile Association predicts that Vietnam’s textile exports will reach US$38 billion in 2021, and also proposed a textile export target of US$43-43.5 billion in 2022.
