Textile, garment exports inch up to $43 bln despite global demand decline

Vietnam’s garment industry estimates its 2022 export value at some $43 billion, compared to $40.4 billion last year, despite a sharp decline in orders in the second half of the year.

Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS), mentioned this estimate at a press briefing in Ho Chi Minh City Friday.

Giang said the sector’s exports in the first 10 months of this year were almost $38 billion, up 17.2% year-on-year, riding on being a signatory to 15 regional and international trade agreements that support export-oriented growth.

However, Vietnam’s key textile and garment markets are likely to continue to face uncertainties and difficulties next year and later, with high inflation still a big concern, he noted.

"The gaining U.S. dollar has added to the difficulties faced by material importers, but product exporters have also earned a little bit more in terms of local currency," Giang said, adding that the sector hopes for a total export value of $45 billion or even $47 billion next year.

Textiles and garments are Vietnam’s second-largest export earner after smartphones. Leading international brands like Nike, Calvin Klein, Mango, Zara, and H&M have placed orders with Vietnamese suppliers. Vietnamese products are shipped to the U.S., EU, China, South Korea, and the CPTPP markets, among others.

CPTPP, or the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, is a trade agreement among 11 members, namely, Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam.

VITAS chairman Giang also said that the localization ratio of materials and inputs in Vietnam’s textile and garment sector had so far reached 49% and was proceeding towards 51-55% in the 2023-2025 period, which means higher added value for domestic production.