Vietnam’s textile and apparel industry quarterly orders begin to decline

Vietnam Securities Network reported on August 31 that according to data from the Vietnam General Administration of Customs, textile and clothing exports reached a new high in July, with exports exceeding US$3 billion for five consecutive months. As of the end of July, textile and apparel exports exceeded US$22.2 billion, a year-on-year increase of 20%. According to a report from Berjaya Textile Investment and Trading Co., Ltd., strong inflation and large inventories in the United States and Europe will significantly reduce the purchasing power of textiles and apparel, thereby affecting business orders in the third quarter. Century Yarn Company is in a similar situation. Mr. Deng Zhaohua, vice president of Century Yarn Company, said that new orders began to decline in the third quarter due to high inflation. In addition, the conflict between Russia and Ukraine has led to rising prices of raw materials and, of course, auxiliary materials. Among them, cotton prices have increased by 19.1%, and freight rates have also increased by three times, causing the production costs of domestic enterprises in Vietnam to increase by more than 20%. In addition, the European Union, one of the major textile and apparel consumer markets for enterprises, is also experiencing the largest depreciation of the euro in the past 20 years. This greatly affects the revenue from the order.