The Vietnam Textile and Apparel Association (VITAS) cooperated with the Trade Promotion Bureau of the Ministry of Industry and Commerce of Vietnam to organize the supply and demand of Vietnam’s textile and garment raw material supply chain after the COVID-19 epidemic in Ho Chi Minh City, Vietnam on July 29, 2022. The docking seminar attracted the participation of many textile industry experts and companies.
At the seminar, a number of Vietnamese domestic companies introduced their potential and advantages, and expressed their desire to cooperate with companies in the industry to jointly enhance competitiveness and satisfy customers. Proposed order standards and technology.
Pham Xuan Hong, president of the Vietnam Ho Chi Minh City Textile Embroidery Association, said at the meeting that after two years of severe damage caused by the COVID-19 epidemic, Vietnam’s textile industry has gradually recovered and achieved considerable growth this year. .
According to statistics from the Ministry of Industry and Commerce of Vietnam, Vietnam’s textile and garment exports reached US$22.3 billion in the first half of this year, an annual increase of 21.6%, ranking first among the world’s textile and garment exporters. 3, accounting for 6.4% of the global market, second only to China (31.6%) and Europe (27.9%). In addition, Vietnam’s top three textile and garment export markets, the EU, the United States, and Japan, are also the world’s top three textile and garment import markets, accounting for 34.1%, 16.8%, and 5.3% of the global market respectively.
President Fan continued that in addition to the above-mentioned positive results, Vietnam’s textile industry also faces many risks and challenges. Among them, the most worrying thing is that the consumption power of the main textile import markets of the United States and the European Union has declined due to inflation; the conflict between Russia and Russia has evolved complexly, resulting in high raw material prices; many countries and regions that are important trading partners of Vietnam have For example, China, Japan, and Taiwan are still implementing strict epidemic prevention measures due to the new coronavirus variant virus, which has seriously affected the Vietnamese textile and garment supply chain and consumption.
In addition, the exchange rate fluctuations of import and export, the labor shortage after the new crown epidemic, and the new generation free trade agreement (FTA) on cotton, fabrics, yarn or green textiles Requirements such as traceability of origin are also issues that companies need to actively face.
The vice president of the Vietnam Ho Chi Minh City Textile Embroidery Association also proposed to President Fan on behalf of the main exporters of the Vietnamese textile industry. Fan Wenyue, general manager of Jean Yuesheng Co., Ltd. Agree with the view and predict that the future situation will still face many difficulties for Vietnam’s textile industry.
Vice President Fan continued to say that textile exports to the US and EU markets have shown a downward trend, and Vietnam’s recycled fiber is mainly exported to China (accounting for about 60% of exports). China still adopts a strict “clearance” epidemic prevention policy, resulting in nearly 60,000 workers sometimes having to suspend production. The Japanese market has also gradually reduced orders and is expected to drop significantly by the first quarter of 2023. Currently, some textile industries must take measures to reduce production ( That is, 5 days of production per week) plan.
Vice Chairman Fan also made suggestions that if Vietnam’s textile industry wants to survive future difficulties and increase export prices, it must control costs and continue to invest in upgrading equipment and technology. ; In-depth study of market demand and brand standards; diversification of raw material market sources; strengthening connections and innovation among domestic enterprises, investing in the development of domestic raw material sources, thereby reducing dependence on some markets (Note: At present, the localization of raw materials in Vietnam only reaches 55%) etc.
Vietnamese experts believe that in addition to promoting the supply and demand docking of the textile industry supply chain to enhance value, the Vietnamese textile industry still needs to actively strengthen its response to the risks of barriers to trade remedy measures.
Phan Khanh An, deputy section chief of the Legal Affairs Section of the Trade Defense Bureau of the Ministry of Industry and Commerce of Vietnam, emphasized that Vietnam is in line with 60 countries and regions around the world and participates in 15 freedoms that have taken effect trade agreement (FTA). Therefore, Vietnam is also affected by various importing countries’ efforts to strengthen the protection of domestic industries and prevent origin fraud in order to enjoy FTA preferential tariffs, and increase the risk of taking trade remedy measures against Vietnam.
So far, Vietnam’s exports have faced more than 210 cases of trade defense measures being investigated, including 22 cases of textiles and garments. It mainly involves anti-dumping and trade remedy measures, mainly in Turkey, the United States, India and other countries. These investigations have reflected the troubles Vietnam’s textile and garment export industry is facing.
The Trade Defense Bureau of the Ministry of Industry and Commerce of Vietnam calls on Vietnamese textile manufacturers to update relevant market conditions and information from import partners, and especially pay attention to the trends of trade defense measures. At the same time, establish an accurate and transparent management system, file documents, control export volume and price, and contact the docking window at any time when litigation cases occur.
In addition, enterprises should set up a legal department and hire lawyers with professional knowledge of trade remedies, so that when a case occurs, they can provide timely advice and fully participate and cooperate to ensure their own success. Prove innocence so that losses can be minimized when trade remedy measures are taken.
