AsemconnectVietnam - Companies seek to diversify supply chains to tap into opportunities from a wide range of new-generation free trade agreements and an increasing flow of investments into the local market.

"Vietnam has risen to the top three largest textile and garment exporting countries in the world, with a growth rate of nearly 20 per cent over the past decade. Therefore, green and sustainable production are important factors for Vietnam's textile and garment sector," said Vu Ba Phu, director of the Vietnam Trade Promotion Agency (VIETRADE), at a press conference to introduce the Vietnam International Trade Fair for Apparel, Textiles and Textile Technologies (VIATT) on August 28.
VIATT will make its debut from February 28 to March 1, 2024, at the Saigon Exhibition and Convention Centre, Ho Chi Minh City. The event aims to draw in over 500 exhibitors and around 35,000 visitors to an 18,000 square metre exhibition space.
As an international trade fair, VIATT 2024 will be a meeting place for suppliers and buyers of all categories to find sources of supply and maximise the potential of this market. By connecting textile companies across Asia and Europe, VIATT 2024 will play an important role in shaping the future of Vietnam's garments and textiles industry, according to Phu.
Experts spell out what textile industry needs to do to recover
The textile industry has to proactively combat the challenges it faces such as low demand, a slowing economy, inflation, and low prices, experts have said.
According to the Ministry of Industry and Trade, textile exports fell by 15.1 per cent year-on-year in the first two quarters to US$18.93 billion.
Nguyễn Văn Hải, general director of the Hòa Thọ Textile - Garment JSC, said this year, textile businesses, including his, have suffered from decreasing demand and plummeting prices.
This was due to a decline in orders from many major markets like the US and the EU, said Nguyễn Hải Đường, chairman and general director of textile and garment company M2 Vietnam JSC.
Cao Hữu Hiếu, general director of the Việt Nam National Textile and Garment Group (Vinatex), said the problem was exacerbated by the global economic downturn and increasing competition for the shrinking pie, with exports to the US falling again in the third quarter after a 26 per cent drop in the second.
Vietnam, RoK strengthen textile cooperation
The Vietnam Textile and Apparel Association (VITAS) and the Korea Federation of Textile Industries (KOFOTI) have signed a memorandum of understanding (MoU) to strengthen bilateral cooperation, KOFOTI announced on August 24.
The signing ceremony took place within the framework of the textile exhibition “Preview in Seoul 2023” held in Seoul from August 23-25.
Speaking at the ceremony, KOFOTI chairman Choi Byung-oh said that RoK and Vietnam have been reliable partners in textile production, processing, and export for the past 30 years.
With the MoU signing, the Korean side hopes that the strategic partnership in the textile and fashion industries of the two countries will be strengthened, especially on issues of sustainable development, digital transformation, and supply chains.
A KOFOTI official also said Vietnam's high economic growth rate and young people's interest in the Korean culture are constantly increasing, adding the MoU is expected to help Korean businesses penetrate deeply into the Vietnamese market.
Vietnam imports 9.4 mn kg fabric from Thailand in Jan-May 2023
Vietnam and Thailand engage in mutual fabric trade for their garment industries. Vietnam imported 9.404 million kg of fabric from Thailand and exported 9.894 million kg in the first 5 months of 2023. The past years' imports and exports show fluctuations. Vietnam's apparel exports to Thailand have been notable, while imports have remained negligible.
Domestic enterprises actively transform themselves to adapt to the new context
In addition to external support from input costs, textile enterprises themselves are also very active and proactive in transforming themselves to meet the new requirements of the international market. Transforming “green production” is the inevitable direction for businesses to quickly catch up with the export race with competitors.
However, “greening” is a process and it takes time for businesses to perfect. In parallel with this process, many businesses are trying to maintain production, as well as presence in the market by accepting small orders, not strengths.
Thanks to the transformation and taking advantage of every small opportunity, Vietnam’s textile and garment exports have also gradually improved. The export turnover of textiles and garments has seen positive changes since May. According to the General Department of Customs, the cumulative export value of this item in the first 7 months of the year was 19.05 billion USD, 14.5 billion lower than that of the General Department of Customs. % year-on-year, down from the 38% difference in January of this year.
Moreover, the end of the year is the time when major holidays such as Christmas, New Year… take place, which will promote a natural increase in demand for textiles and garments compared to the gloomy order of the months. this early year. With the initiative to seize opportunities from domestic textile enterprises, the billion-dollar export industry will have more opportunities to speed up the recovery.
T.Huong
Source: Vitic