Foreign Media: China Will Become The Main Textile Export Market Of Vietnam

Vietnam express website recently reported that China will become the main export market of Vietnam's textile and garment industry, so as to make up for the losses caused by the sluggish demand in traditional markets such as Japan and EU in recent two years.

According to Vietnam's national textile and clothing group (VINATEX), the outbreak of new crown pneumonia has made some important markets unstable. For example, the European Union is still at risk of a resurgence, while Japan's economy has not yet recovered. In view of this, Vietnam's textile and clothing exports to these two markets are not expected to increase this year.

According to data from VINATEX, Vietnam's textile and clothing exports to China amounted to US $680 million in the first quarter of this year, with the fastest growth among the country's five major export markets (China, the United States, Japan, South Korea and the European Union). According to the data released by the General Administration of statistics of Vietnam, the export volume of Vietnam's textiles and clothing reached 12.2 billion US dollars in the first five months of 2021, up 15% year-on-year.

VINATEX points out that one of the group's major challenges this year is a sharp drop in tooling demand, which is one of its main products. Due to the isolation at home during the epidemic period, consumers prefer to buy loose and comfortable leisure and sports wear. Another difficulty for the group is that inflation expectations in Vietnam have risen this year, leading to an increase in loan interest rates and financial costs.

VINATEX set an annual target of sales revenue of 1.5 trillion dong (about 66 million US dollars), a year-on-year increase of 5%, and a pre tax profit of 20.0 billion Dong (about 8.76 million US dollars), a year-on-year increase of 37%. In order to complete the above tasks, the group said it would withdraw capital from some inefficient companies this year to reduce losses and recover funds.