Vietnam Business News reported on September 19, 2022 that in the remaining four months of 2022, Vietnam’s textile industry is expected to only reach US$3.1-3.4 billion per month, significantly lower than this year Average of the previous 8 months.
Le Thien Truong, chairman of the Vietnam Textile and Garment Group, said at the recently held 2022 Economic and Social Development Forum: Due to the world economic downturn and rising inflation, the world market has suddenly It gets “cold” and demand drops sharply. In the first six months of this year, the inflation rate of the U.S. economy increased by 9% compared with June 2021, but textile prices fell by 9% and inventories increased significantly.
Vietnam’s textile exports can reach US$3.7-3.8 billion per month in the first eight months of this year, but it is expected to only export US$3.1-3.2 billion per month in the last four months of this year.
On the other hand, Vietnam’s macro-economy is stable and the value of Vietnam’s currency is relatively high. The currencies of competitors India and China have depreciated by 8% and 9% respectively against the US dollar. Vietnam’s exports are losing their price advantage.
Vietnam’s textile and apparel industry exports in the first eight months of this year were approximately US$30.2 billion, a year-on-year increase of nearly 20%. This is a growth rate that has not been seen in more than 10 years.
In addition, according to data from the General Administration of Customs, the import volume of raw materials and accessories in the textile industry in the first eight months was only about US$13 billion. The textile industry created a trade surplus of US$17 billion.
In particular, the localization rate of the textile industry reached 57% in the first eight months of this year (higher than the annual average level of 50%), and is close to reaching 60% by 2025 The goal.
Based on tracking market trends and forecasts from domestic and foreign experts and institutions, Mr. Li Jinchang said that the market trend in the last four months of 2022 and 2023 will be quite sluggish.
