Amid constant fluctuations in the global economy, domestic textile enterprises have faced numerous challenges to their production and business activities.
The escalating trade tensions between the United States and China have negatively impacted exchange rates between currencies, leading to a higher price of outsourced goods in Vietnam in comparison with regional peers such as the Republic of Korea and China.
The move has also affected the number of export orders received by local businesses.
Most notably, the consumption of fibers and raw materials have encountered difficulties as China, the country’s main export market has scaled back imports. Meanwhile, garment products have also suffered from a fall in orders.
By the middle of 2018, many of the sector’s large enterprises had export orders for the entire year. In contrast, in 2019, several businesses have only been able to sign monthly export contracts with a small quantity of orders.
This decline is attributable to concerns among buyers regarding the escalating US-China trade war. Therefore, orders are being divided into small bulks as opposed to the large quantities seen in previous years.
Generally, in the reviewed period, export activities along with textile and apparel production have maintained growth in comparison to the same period last year. However, due to changing orders, businesses have been advised to change their production and business methods in order to become better prepared to adapt to the new situation.