In a turn of events that has stirred both concern and determination within Vietnam’s textile and garment industry, recent data reveals a decline in exports during the first four months of 2023. Preliminary figures from the customs IT and statistics department of the general department of customs, under Vietnam’s Ministry of Finance, indicate a significant drop of 18.1 percent, with total exports amounting to $9.720 billion. While this news may cause some apprehension, experts believe it also presents an opportunity for the industry to evolve and adapt.
Throughout January to April 2023, Vietnam witnessed a downturn in its yarn exports, registering a substantial 32.9 percent decrease to $1,297.751 million compared to the same period the previous year. In terms of volume, the country exported 518,035 tons of yarn, reflecting an 11.7 percent decline. April 2023 alone witnessed a 5.2 percent drop in yarn exports, amounting to $356.713 million, with the quantity of exports decreasing by 4.7 percent to 144,166 tons during this review period.
The United States maintained a significant share of Vietnam’s textile and garment exports, constituting 42.89 percent, equivalent to $4.159 billion, during the first four months of this year. Japan and South Korea were also prominent destinations, with exports valued at $1,129.441 million and $990.407 million, respectively.
In terms of yarn exports, China dominated the market, accounting for 47.03 percent of Vietnam’s exports, with a total value of $610.604 million. Additionally, India emerged as a substantial market for Vietnamese yarn exports, receiving shipments worth $12.400 million during the initial four months of 2023.
While these recent figures may seem discouraging, it is important to consider the broader context. In 2022, Vietnam’s textile and garment exports experienced a remarkable growth of 14.7 percent, reaching $37.5 billion. Although falling short of the ambitious target of $43 billion, this growth demonstrated the industry’s resilience and potential. In 2021, Vietnam’s textile and garment exports amounted to $32.750 billion, reflecting a growth of 9.9 percent compared to the previous year.
Looking ahead, the Vietnam Textile and Apparel Association (VITAS) remains optimistic about the industry’s future prospects. In the case of a positive market scenario, Vietnam has set an export target of $48 billion for textiles, garments, and yarn in 2023. This ambitious goal serves as a driving force for industry players to explore new avenues, enhance competitiveness, and forge stronger partnerships to revive growth.
The challenges faced by Vietnam’s textile and garment industry in recent months have been attributed to a multitude of factors, including global economic uncertainties, supply chain disruptions caused by the ongoing pandemic, and increased competition from regional counterparts. However, industry leaders are committed to overcoming these obstacles by focusing on product diversification, innovation, and sustainability.
Efforts are underway to strengthen ties with existing key markets, such as the United States, Japan, South Korea, China, and India, while exploring emerging markets to tap into fresh opportunities. Collaboration between government bodies, industry associations, and manufacturers is being intensified to streamline policies, foster technological advancements, and promote the sustainable growth of the sector.