AsemconnectVietnam - In the midst of sharply declining orders and consumer demand, Vietnamese textile companies are being urged to implement policies on sustainable development, greening, energy conservation, and emission reduction.

Orders plummet
Textile and garment export orders plunged in the first few months of the year due to lingering pandemic-related fallout, inflation in traditional markets, currency depreciation, and a drop in global buying power.
For example, Pham Van Viet, General Director of the Viet Thang Jean Co., Ltd (Vita Jean), one of the top five fashion companies in Indochina, reported a 16 percent Q1 export income decline and a 20 percent decrease in production capacity. Major export drops were recorded in traditional markets such as the EU (25 percent), the US (46 percent), and Japan (17 percent).
Pham Xuan Hong, chair of the Ho Chi Minh City Association of Garments, Textiles, Embroidery and Knitting, said businesses in the city are striving to maintain production in order to provide employment and income stability for workers, but orders have dropped 30-40 percent compared to the same period last year. Orders are expected to drop 20 percent in Q2, with a probable increase in Q3. Hong attributed the declining orders to diminished domestic buying power, unemployment, and lower incomes.
Vietnam is the world’s second largest exporter of ready-made garments, with the sector employing around 2.5 million people.
Deeper rather than broader
Deputy Minister of Industry and Trade Phan Thi Thang has urged Vietnamese textile and garment companies to prioritize depth rather than breadth in the current challenging market context. This includes participating more deeply in the global textile and garment supply chain, with a focus on high value-added stages such as design, production of input materials, distribution, and gradually moving up to higher positions in the production chain. The industry’s development strategy aims to achieve a textile and garment export turnover of US$68-70 billion by 2030, which requires a shift in thinking towards large-scale complete textile and garment production chains, investment in modern and highly automated equipment, real-time automated management, and environmentally friendly production.
According to Vu Duc Giang, Chair of the Vietnam Textile and Apparel Association (VITAS), sustainable development is increasingly urgent in 2023 as partners demand greater traceability and greening of textile products. To meet these challenges, companies must diversify their markets, products, and brands and prioritize use of recycled materials, which requires investment in raw materials, human resources, and infrastructure. VITAS recommends that companies participate in trade promotion activities such as specialized fairs and exhibitions to expand their markets and find new customers. Vitas is actively collaborating with the Ministry of Industry and Trade to organize such events.
Source: Ven.vn