AsemconnectVietnam - Vietnam’s textile and garment industry generated only US$3.06 billion in export revenue in April, down 20.6% year-on-year, according to the Vietnam National Textile and Garment Group, or Vinatex.

The export value of textiles and garments in the first four months of the year reached only US$11.7 billion, down 20% over the same period last year.
There was a noticeable drop in the export value of textile and garments to major markets in April.
Particularly, the textile and garment shipments to the U.S. market totaled only US$1.15 billion, down 30% year-on-year, while the revenue from exporting products to the EU was just US$349 million, down 9%.
Meanwhile, Vietnam gained only US$237 million from exporting textile and garment products to South Korea in April, down 21%.
During the first four months of the year, textile and garment exports to the U.S. and China declined over 30%. Only exports to Japan gained 6.6% in value.
Listed textiles enterprises face negative prospects this year
Many textile companies are struggling as they have to reduce employees due to shrinking revenues.The slowdown of global economic growth has affected manufacturing activities across industries, including textiles.In the first quarter of the year, Vietnamese textile and garment exports decreased nearly 18 per cent on-year to more than US$7 billion, according to General Department of Vietnam Customs statistics.The April data continued to show not very positive signs, with an export value of $2.5 billion, down nearly 20 per cent over last year. The industry continues to face challenges shortly due to a sharp decrease in purchasing power from major markets such as the US and European Union (EU), the recent textile industry report of KIS Vietnam Securities showed.Many businesses have not had orders for the rest of the second quarter.
Vietnam textile giants see Q1 profits plunge
Vietnam's textile and garment giants Vinatex, Century Corp, Viet Tien Garment, and Phong Phu Corporation reported a plunge in profits in the first quarter of this year amid declining orders and high material prices.
The country's largest textile and garment maker Vinatex reported an after-tax profit of VND92.6 billion ($3.95 million) in the quarter, down 3.5 times year-on-year. Its net revenue reached VND4.22 trillion ($179.63 million), down 14%, according to the corporation's consolidated financial statement. Notably, Vinatex's interest expenses increased nearly two-fold to VND102 billion ($4.35 million).
In 2023, Vinatex has set cautious targets with consolidated revenue of VND19.55 trillion ($833.15 million), equal to 2022, and pre-tax profit of VND935 billion ($39.85 million), down 14% year-on-year.
Vinatex is registered on the unlisted public company market UPCoM as VGT, which closed on Thursday at VND11,700 ($0.5).
Yarn Exports Decline, Imports of Grey Fabrics Decrease
n April 2023, Vietnam's textile industry experienced a mix of positive and negative trends. Cotton imports showed robust growth, with a significant increase of 27.9% YoY and 29.9% MoM, indicating strong demand. However, yarn imports faced a temporary slowdown, declining by 16.4% MoM despite a slight 0.8% YoY increase.
Yarn exports also witnessed a decline, dropping by 4.7% MoM and 1.4% YoY, with China, South Korea, and the United States as the primary export destinations. The net export of yarns decreased by 4.3% YoY, but a promising increase of 18.8% MoM was observed.
Additionally, imports of grey fabrics and finished textiles decreased by 9.6% MoM and 20.7% YoY. Textile and garment exports faced challenges, declining by 3.3% MoM and 19.4% YoY.
These trends highlight the industry's challenges, including global macro risks and weakening demand in key markets. Vietnam's textile industry must navigate these obstacles and develop sustainable growth strategies to adapt to changing market dynamics.
VN textile, garment firms switching to green production
Textile and garment businesses in Vietnam are taking steps to switch to green production to meet partners’ demand and achieve sustainable development, the Cong Thuong (Industry & Trade) newspaper reported.
Greening textile and garment production chains is currently a global trend that are compulsory for businesses to achieve sustainability. It is also a requirement placed on manufacturers as the EU, which imports over 4 billion USD worth of textiles and garments from Vietnam annually, has proposed the imposition of some eco-regulations on imports.
Major fashion brands in the world are also prioritising green enterprises to place their orders or requesting suppliers to adopt green practices.
Facing challenges and strict requirements from the market, many Vietnamese businesses are making changes towards green manufacturing, including upgrading factories and using recycled fabric and green energy.
Among them, the Hanoi Textile & Garment Joint Stock Corporation (Hanosimex) and the Hansae group of the Republic of Korea are implementing a recycled fabric production project in Vietnam.
T.Huong
Source: Vitic