Vietnam Textile and Garment Industry Report Q2/2022
Garment industry, fabric industry
• In the first 5 months of 2022, the output of clothing and apparel that Vietnamese enterprises can produce increase compared to the same period last year.
• Vietnam’s garment export turnover increased by 20.8% over the same period last year.
• T-shirts, pants, jackets are the main garment export items of Vietnam when the category structure. Vietnam’s garment exports tend to focus on common, convenient items high-use, serving the mid-end and low-end market segments in recent years.
The output of yarn and fabric produced in Vietnam in the first 6 months of 2022 tends to decrease. Especially, yarn output dropped sharply while import turnover of fiber and yarn of all kinds still increased by 6.4% due to higher prices of fibers and yarns.
Forecast
The textile industry in the second half of 2022 will face many difficulties when:
• Rising costs of raw materials, fuel, transportation and labor continue to be a burden for businesses
Industry: Along with inflationary pressure, the Russia-Ukraine tension has not ended while gasoline prices, costs Sea transport is constantly increasing, causing the production costs of enterprises to increase. While estimating the cost of yarn, fabric,
Logistics and labor will still be high in case gasoline prices have not shown any signs of cooling down.
• Oversupply is happening recently when customers have shortened the reservation time orders, from 6 months as before, now only order 3 months in advance due to the inventory of garments in the market
The export market is still relatively high. Meanwhile, inflationary pressure in the US and European countries increase will negatively affect consumers’ ability to spend on apparel products.
1. Macroeconomics
2. Raw materials
3. Spinning
4. Textile dyeing
5. Garment
6. Distribution
7. Forecast
8. News
