Textile, leather and footwear exports fetch US$71 billion

In terms of the figure, the garment and textile sector grossed US$44 billion, while the leather footwear and handbag industry recorded turnover of US$27 billion.

Vitas assessed that despite facing the impact of a global economic recession coupled with high inflation, leading to a sharp decline in the consumption demand and export orders, the garment, textile and footwear sector was able to achieve double-digit growth.

Sharing this perspective, Le Tien Truong, chairman of the Vietnam National Garment and Textile Group (Vinatex), revealed that the garment and textile sector achieved robust growth in the fourth quarter of 2021, as well as during the initial eight months of 2022.

However, export orders recorded a significant drop in the fourth quarter of 2022, thereby leading to several businesses being forced to lay off their workers.

Truong analysed that high inflation in the majority of major Vietnamese markets such as the United States and the EU will have an impact on the furniture, garment and textile, footwear, electronics, and plastics sectors moving forward.

With a decline in the number of orders, the export market for the textile, garment and footwear industry is therefore forecast to remain quiet until the end of the first quarter of the year.

This year the textile and garment industry has set sights on reaching its export target of between US$46 billion and US$47 billion, while the leather and footwear industry strives to fulfill its goal of between US$27 billion and US$28 billion.

As the major export industries of the national economy, the textile and footwear industry has been advised to retain skilled workers, promote investment in the production of raw materials and auxiliary materials, focus on producing artificial fabrics, as well as encourage the production of domestic yarns.

This should be done in order to reduce imports whilst simultaneously seeking to establish a complete value chain  within the industry in the long-term.