Apparel export market showing signs of gradual recovery
VOV.VN - Although textile and garment export turnover in August continued to endure a fall compared to the same period last year, the apparel export market is in the process of showing gradual recovery while workers’ jobs are still being guaranteed.
Pham Xuan Hong, chairman of the Ho Chi Minh City Association of Garments, Textiles, Embroidery and Knitting, assessed that the textile market ahead in remaining months of the year has warmed up and gradually stabilized. More specifically, although orders are still lacking, businesses continue to ensure jobs for workers in the fourth quarter, while revenue decline and difficulties are also being reduced.
This result is due to the recovery made in relation to consumer demand for textile products, whilst the markets also have new demands.
“Although the market still faces plenty of difficulties in price, competition in small orders, and more difficult and complex designs, local businesses make great efforts to meet requirements, thus promoting consumption and contracts with partners," said Pham Xuan Hong.
According to the Vietnam Textile and Apparel Association, textile and garment exports reached nearly US$3.6 billion in August, a fall of 6% compared to the previous month.
The first eight months of the year witnessed textile and garment export turnover rake in US$26.1 billion, down 16% compared to last year’s same period. With this result, the apparel industry has completed 65% of the export turnover target of US$40 billion set for this year.
In the latest analysis report on the textile industry, SSI Research outlined that orders for the Vietnamese textile industry are expected to gradually improve from the fourth quarter of the year.
SSI Research forecasts that the selling price of exported garments will continue to remain low at about 20% lower than the average in the first half of 2022, whilst they will only slightly improve for FOB orders.
In particular, SSI Research experts have stated that the trend of orders with smaller volumes and faster delivery times, previous delivery times were up to two months and now can be shortened to three to four weeks, will last until 2024.
Alongside these market signals, a number of domestic textile enterprises are gradually stabilizing production.
TNG Investment and Trading Joint Stock Company is one of the businesses which recorded positive business results in August when it reached VND721 billion, an increase of 3% compared to last August.
At a macro level, the August macro report of Bao Viet Securities (BVSC) identified the industrial production index of the textile, fiber production, metal production, iron and steel production, and iron and steel production industries, beds, wardrobes, tables, and chairs have all seen a sharp increase again over the same period.
It can therefore be seen that the textile and garment market has recorded a gradual recovery thanks to the efforts of businesses in seeking orders and meeting increasingly difficult regulatory standards. Through the support of the Ministry of Industry and Trade in promoting market expansion, it is hoped that the Vietnamese textile and garment industry will soon "exit the bottom", gradually recovering production and export in the time ahead.
