Vietnam'S Textile Export Is Expected To Have A Rather Low Market Trend In The Future

Vietnam industry and Commerce Daily reported on September 19, 2022 that in the remaining four months of 2022, Vietnam's textile industry is expected to reach $3.1-3.4 billion per month, significantly lower than the average value in the first eight months of this year.

At the 2022 economic and social development forum held recently, Li Jinchang, chairman of Vietnam textile and Garment Group, said: due to the downturn of the world economy and the aggravation of inflation, the world market has suddenly become "cold" and the demand has dropped sharply. In the first six months of this year, the inflation rate of the U.S. economy increased by 9% compared with that in June 2021, but the price of textiles fell by 9%, and the inventory rose sharply.

In the first eight months of this year, Vietnam's textile exports can reach US $3.7-3.8 billion per month, but it is estimated that in the last four months of this year, only US $3.1-3.2 billion will be exported each month.

On the other hand, Vietnam's macro-economy is stable, and the value of Vietnam's currency is relatively high. The currencies of competitors India and China have depreciated by 8% and 9% respectively against the US dollar. Vietnam's exports are losing their price advantage.

In the first eight months of this year, the export volume of Vietnam's textile and clothing industry was about 30.2 billion US dollars, with a year-on-year growth of nearly 20%. This is a growth rate that has not been seen in more than a decade.

In addition, according to the data of the General Administration of customs and the textile industry, the import of raw materials was only about $13 billion in the previous month. The textile industry created a trade surplus of 17 billion US dollars.

In particular, in the first eight months of this year, the localization rate of the textile industry reached 57% (higher than the average annual level of 50%), approaching the target of 60% by 2025.

According to the tracking of the market trend and the prediction of experts and institutions at home and abroad, Mr. Li Jinchang said that the market trend in the last four months of 2022 and 2023 was quite low.