Garment makers likely to hit export target amid challenges

VOV.VN - Despite suffering a fall in export orders coupled with the appreciation of the US dollar, the local garment and textile industry is anticpated to meet an export target of between US$43 - 44 billion this year, according to industry insiders.

Truong Van Cam, vice chairman of Vietnam Textile and Apparel Association, said in September alone, garment and textile exports declined 11.7% month on month to 11.7% to US$4 billion, with several major consumers such as the United States and the European Union experiencing a sharp fall of 3% and 3.2%.

The industry is likely to encounter difficulties moving into the fourth quarter of the year and into the first quarter of next year, particularly as several businesses are lacking export orders or are struggling to find new outlets, said Cam.

According to statsitics compiled by SSi Research, the number of export orders of domestic garment makers in the fourth quarter of the year stood between 25% and 50%, a figure lower than compared to the second quarter of the year.

Some enterprises have since begun to receive orders for the first quarter of 2023, although the number of orders received still remains far from operating capacity, as consumers overseas have tightened their belt, forcing importers to reduce order numbers.

Experts pointed out that this fall can largely be attributed to high inflation occurring in some major markets such as the US and the EU, along with the ongoing Russia-Ukraine conflict, high inventories as a result of the prolonged impact of the COVID-19 pandemic, and exchange rate fluctuations.

Most notably, the Vietnamese textile and garment industry is currently importing a large proportion of raw materials, especially fabric, for production, said Pham Xuan Hong, chairman of Ho Chi Minh City Textile, Embroidery and Knitting Association.

The rising exchange rate is putting a great deal of pressure on textile enterprises as the prices of imported raw materials are continuously recording sharp increases, resulting in local firms making little profit, confided Hong.

However, experts pointed out the industry still has room to fulfil the export target this year after raking in more than US$35 billion from export contracts in the Jan. – Sept. period.

They advised local businesses to select appropriate orders, stabilize production lines, and strengthen cooperation to share orders and retain customers.

They also proposed speeding up the implementation of the VND35 trilion support package as part of efforts to help businesses develop production, increase exports, and boost income for workers moving forward.

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