AsemconnectVietnam - The Vietnamese textile and garment industry has set a target to achieve US $44 billion in exports in 2024, an increase of 9.2 percent compared to 2023.

Vietnam’s textile and apparel exports to the US market are expected to prosper in 2024, as Vietnamese textile and garment exporters already have orders in hand till end of first quarter of 2024.
According to a VinaCapital Group report, export orders are expected to rise in 2024, as inventories with US clothing brands and retailers dipped 5-7 percent at 2023-end when compared with end of 2022.The report added that apparel exporters have reported having orders in hand which will last them towards the end of March 2024.Not only that, many garment brands and retailers have committed to continuing to place more orders in the second quarter to the fourth quarter of 2024.
Bilateral deals needed to facilitate Vietnamese garment, textile exports to Canada
Along with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), the Vietnamese garment and textile sector also needs a Vietnam-Canada free trade agreement or another bilateral deal to penetrate more deeply into the North American market, according to experts.
Currently, Vietnam is the third largest garment supplier to Canada with a market share of about 12%.
In a recent garment and textile exhibition in Canada, the Vietnam Export Garment Co., Ltd (VEG) became one of the two Vietnamese businesses capable of producing fabrics that satisfy CPTPP's origin principles. However, Vietnamese Trade Counselor in Canada Tran Thu Quynh said that the rate of CPTPP exploitation through material localisation by domestic enterprises remains at only about 50%, adding her office is working to guide businesses to make clearer investment and logistics strategies so as to better utilise the deal.
Canada imports 13-15 billion USD worth of garment and textile products each year.
Vietnam’s textiles, garments yet to fully tap FTAs’ advantages and potential
Vietnam’s textile and garment industry has not been able to fully capitalise on the advantages and potential of FTAs, according to the Ministry of Industry and Trade (MoIT).
To address this issue, the MoIT, as the leading agency for FTA negotiation and enforcement, has been enhancing connections with ministries, localities, associations, and stakeholders to establish a collaborative ecosystem to help the textile industry effectively leverage FTAs.
According to Ngo Chung Khanh, deputy head of the multilateral trade policy department under the MoIT, the Vietnamese government has signed various FTAs with many markets around the world, with a key focus on reducing tariffs to the lowest and quickest levels and simpler rules of origin for Vietnamese goods, especially in the textile and garment sector.
In a recent survey by the Vietnam Chamber of Commerce and Industry (VCCI), while most enterprises had some understanding of the FTAs, only about 8% possessed a clear understanding.
Red Sea tension likely to affect garment exporters from Q2
The tension in the Red Sea, which has led to increases in logistic costs and shipping time, is forecast to affect Vietnamese exporters of garment from the second quarter of 2024 if it persists.
The Vietnam Leather, Footwear and Handbag Association (Lefaso) and the Vietnam Textile and Apparel Association (VITAS) Vice President and General Secretary Truong Van Cam said that domestic enterprises are keeping a close eye on the situation to negotiate new export deals.
Tran Thanh Hai, Deputy Director of the Agency of Foreign Trade under the Ministry of Industry and Trade, said that due to the Red Sea tension, the logistics costs for each container passing through the European region can increase by between US$1,000 - 2,000.
Hai advised domestic businesses to keep a close watch on the situation to take timely response measures.
T.Huong
Source: Vitic/VNA