This information was unveiled in a document unveiled at the recent annual general meeting of shareholders by the Vietnam National Textile and Garment Group (Vinatex).
Moving forward, China will not focus on producing apparel and textiles in line with its five-year strategy, thereby turning the northern neighbour into a major consumer of Vietnamese textiles and garments.
During the first quarter of the year, local garment and textile exports to China witnessed robust growth among the five major markets, achieving the same export turnover as that of EU in the process.
Furthermore, the US remains the largest Vietnamese export market with a growth rate of 5.9% in the first quarter. During the remainder of the year, the US market is expected to bounce back thanks to the implementation of a stimulus package of US$1.9 trillion coupled with the mass rollout COVID-19 vaccination scheme.
The country’s garments and textiles to the EU and Japan will continue to face difficulties in the near future due to the EU facing the risk of a third wave of COVID-19, while the Japanese economy has not shown any signs of recovery, according to Vinatex.
McKinsey's projection anticipate that the global apparel and textile industry will rebound by the third quarter of next year, or perhaps later in the fourth quarter of 2023.
Currently, Vietnamese garment enterprises have sufficient orders until the end of the second quarter, although prices remain low.
Vinatex predicts that the garment and textile sector will recover one year ahead of scheduled compared to the global forecast.
The industry is striving to achieve a revenue of VND17,365 billion this year, up 17% compared to 2020.