The main export markets for Vietnam’s textiles, including the U.S., Japan, South Korea, and China, have shown positive growth. In July, textile export turnover reached US$3.72 billion, marking a 17.6% increase from the previous month.

A worker at a textile and garment company in Da Nang, June 2024.

From January to July, Vietnam’s textile export turnover totaled approximately $20.3 billion, up 6.3% year-on-year, according to Vietnam Customs data.

TNG Investment and Trading JSC, which produces for brands like Decathlon and Asmara, reported a second-quarter revenue of VND2.174 trillion ($87.4 million) and a post-tax profit of VND86 billion, up 8.8% and 57.1% year-on-year.

The surge in orders for TNG is partly driven by heightened demand ahead of the Paris Olympics, with the company securing enough orders to last through the year and currently negotiating for next year’s contracts, according to SSI Securities.

VITAS forecasts continued strong performance for textile exports, traditionally bolstered by increased demand in the final months of the year.

In the U.S., one of Vietnam’s major textile markets, the value of textile product inventories in the first half of the year was $2.172 trillion, down 2.4% year-on-year. Despite this, sales rose by 1.2%. Over the last seven months, the U.S. imported $8.93 billion worth of Vietnamese textiles, a 5.5% increase from the same period last year.

The instability in Bangladesh has potentially led to the closure of some factories, prompting global clients to seek alternatives in countries like Vietnam, according to SSI Securities.

However, despite the positive trend in orders, the industry’s profit margins remain under pressure due to rising labor costs.

The minimum wage in Vietnam increased by 6% in July, posing a challenge for many companies. Among the 30 textile firms listed on two stock exchanges, only about half reported profit growth in the second quarter.

Digital transformation – optimal choice for Vietnamese garment & textile firms

Digital transformation is considered a “key” to help Vietnamese garment and textile enterprises expand while meeting sustainable development, heard a recent conference held in Ho Cho Minh City.

FDI flow into garment and textile sector bounces back

The flow of foreign direct investment (FDI) into the Vietnamese garment and textile sector has rebounded thanks to the country’s sound investment climate and abundant workforce as well as its open economy, according to insiders.

Garment industry exports make recovery

Many garment companies have reported 10-15% year-on-year increases in exports in the first quarter and receiving enough orders to last until the third.

Vietnam’s garment sector targets export revenue of 70 billion USD by 2030

Vietnam aims to bring in 70 billion USD in garment export revenue by 2030, according to Truong Van Cam, Vice Chairman of the Vietnam Textile and Apparel Association (Vitas).

Green production critical to sustainable textile, garment export

Textile and garment exports posted a year-on-year increase of 15% in the first two months of 2024, a result partly attributed to the industry’s gradual adaptation to the green production requirement of import markets.

Garment sector eyes 44 billion USD in export this year

The garment and textile sector has set a target of 44 billion USD in export turnover this year, up 10% year-on-year.

Source: VnExpress