Vietnam's textile-garment producers target to earn up to 21 billion USD from exports in the second half of 2022, raising total shipments of the year to around 42 – 43 billion USD, Chairman of the Vietnam Textile & Apparel Association (VITAS) Vu Duc Giang told a press conference on July 21.

The industry has seen a gradual recovery this year after being adversely impacted by COVID-19 for two years, according to the VITAS. It enjoyed trade surplus of 8.86 billion USD in the first half of the year.

Exports of textile and garment totalled some 22.3 billion USD from January-June, a 17.7% increase from the same period last year.

Garment export alone rose by 19.5% year-on-year to 16.94 billion USD and that of fabrics reached 1.4 billion USD, up 20.8% year-on-year.

Vietnam imported 13.4 billion USD worth of trims and accessories in H1, up 9.8% year-on-year.

Chairman of the Vietnam Textile & Apparel Association (VITAS) Vu Duc Giang anticipated the industry is facing a bumpy road ahead with various obstacles in the remaining months of 2022. The immense risk of COVID-19 resurgence caused by new variants is still present, he said, adding that strict virus control measures remain in place in many big trade partners of Vietnam like China, Japan and Taiwan (China), disrupting its input supply chain and sales.

There are also other threats, including record-high inflation at major importers, including the United States and Europe, and the Russia-Ukraine tension triggering a steep rise in prices of inputs, he added.

Prices of cotton, crude oil and petrol soared 19.1%, 40% and 67%, respectively, compared to the beginning of this year and transportation cost tripled the average rate of the last five years, driving total expenditures of Vietnamese exporters up as much as 20 – 25%, he explained.

He further noted that compared to their rivals, Vietnamese exporters are confronting disadvantages in currency exchange rates. They have also been dealing with post-pandemic labour shortage and struggling to fulfil FTA commitments on rule of origin and environment protection, Giang said.

To keep production going and sustainably develop the industry, producers must innovate technologies, promote green transformation and pay greater attention to training designers, according to Giang.

VITAS has been working to connect domestic and foreign firms for the formation of supply chains, expand markets, and enhance international cooperation in implementing projects in renewable energy, efficient water use, designing, branding and labour management, he said.

Source: VNA