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Vietnam's textile, garment sector targets $44 billion export turnover in 2024

Thanh Dat Tuesday | 12/19/2023 15:55

Textile, garment sector's export value is expected to shrink 9.2 percent year on year to $40.3 billion in 2023. Photo: VNA / Hong Dat

The textile and garment sector's 2024 export turnover is expected to reach $44 billion, an increase of 9.2 percent over 2023, according to the Vietnam Textile and Apparel Association (VITAS).

The sector's export value is expected to shrink 9.2 percent year on year to $40.3 billion in 2023 due to lower orders and prices, as well as more competition, according to VITAS President Vu Duc Giang during a recent meeting.

Despite the difficulties, the sector has made a breakthrough in diversifying export markets. "Vietnam has never exported textiles and garments to so many markets as it does in 2023: 104 countries and territories,” said Giang.

The United States continues to be the largest importer of Vietnamese clothes, accounting for more than $11 billion, followed by Japan ($3 billion), the European Union ($2.9 billion), and South Korea ($2.43 billion).

Mr. Vu Duc Giang, Chairman of VITAS shared about the development orientation of the textile industry in 2024. Photo: VITAS
Mr. Vu Duc Giang, Chairman of VITAS shared about the development orientation of the textile industry in 2024. Photo: VITAS

In addition to diversifying export markets and goods, the Vietnamese textile and apparel sector is pursuing sustainable development goals such as lowering greenhouse gas emissions and emphasizing investment in electric steam boilers and digital management.

Simultaneously, the sector boosted automation expenditures to fulfill the need for speedy delivery and high-quality products.

The fashion sector has received more attention, focusing on constructing and developing fashion brands in domestic and worldwide markets. Human resources are trained to be capable of using 3D technology in the design of fashion products.

Vietnam has signed many free trade agreements, which are being used to its advantage. VITAS and domestic textile and clothing companies are continuing to grow the fashion industry and connect manufacturers so that Vietnam can supply its materials. They are also using technology in both production and management.

The textile industry will still have problems in 2024, such as export orders continuing to go down, even though they are already going down; the supply chain is still risky and input costs are still high; the risk of not being able to meet debt repayment obligations is still high; interest rate risk and exchange rate decline; digital transformation trends; and the fast-moving greening and circular business trend.

Mr. Tran Thanh Hai, Deputy Director of the Import-Export Department, Ministry of Industry and Trade, stated at the conference that the market in 2023 is quieter compared to the boom of 2022.

However, in comparison to the years 2020-2021, as well as the year before the pandemic, textile and garment export turnover has fully recovered. It is on track to surpass the period preceding the COVID-19 pandemic, he added. 

Among them, it can be mentioned that Vietnam's textile and garment has made a breakthrough in terms of market and export products with 104 export markets with new markets such as Africa, Russia, and Muslim countries, and 36 export textile and garment products.

However, Vietnam's textile and garment industry is currently competing with Bangladesh. While your country has applied green transformation early, Vietnam's textile and garment industry is just in the early transformation steps.

Source: VITAS

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