AsemconnectVietnam - Vietnam earned 4.29 billion USD from exporting textile and garment products in July, up 12.4% from the same period last year.

This is also the first month in the year the sector’s exports have exceeded the 4 billion USD mark, the highest figure since August, 2022.The first seven months of the year witnessed export revenue of the garment and textile sector surge by 5.9% on-year to 23.9 billion USD.
Furthermore, fibre and yarn exports during the January to July period rose by 3.5% on-year to 2.53 billion USD, while that of fabrics also soared by 18% to 458 million USD.Currently, Vietnam exports textile and garment products to 113 countries and territories. The main export markets for Vietnam's textile and garment industry are the US, the EU, Japan, the Republic of Korea (RoK), and China.
The country’s garment and textile exports reached 39.5 billion USD in 2023, an annual drop of 10%. This year the sector has set an export turnover target of 44 billion USD.
US fashion trade show
Twenty-five Vietnamese garment makers have showcased their products at the recent Sourcing at Magic Fashion Trade Show in Las Vegas, USA, to sound out market opportunities, according to the Vietnam Textile and Apparel Association (VITAS).
They displayed a wide range of products made by different materials and in different patterns and designs on 16 pavilions, that attracted a lot of attention from participating businesses and visitors during the August 19-21 event.
The United States is a traditional export market of Vietnamese textiles and garments, accounting for a large turnover. The first six months of 2024 saw the United States import US$7.2 billion worth of the products from Vietnam, making up 7.2% of the US market share, second only to China.
However, the United States importers are tightening regulations on imported products, especially with supply chain control. VITAS has advised garment makers to diversify supply sources of materials from new markets, instead of relying on China that supplies more than 50% of the materials to the Vietnamese garment industry.
Profit squeeze due to rising shipping costs
Vietnamese textile exporters are grappling with significant financial pressures as shipping costs for their goods have risen sharply. The increase in shipping costs, which has surged by up to 20%, is having a pronounced impact on profit margins across the industry.
Exporters are reporting that their profit margins have decreased by as much as 30% due to these elevated shipping expenses. This substantial rise in shipping costs is not only eating into their profits but also leading to a reduction in new order volumes.
In some cases, exporters have seen a decline of up to 15% in the number of new orders, which further compounds the financial strain.
To address these challenges, some companies are exploring alternative shipping routes and engaging in negotiations with logistics providers to secure more favorable rates. Despite these efforts, the overall impact of the rising costs is proving to be a significant hurdle for the Vietnamese textile sector, which is heavily reliant on exports.
Textile-garment production chain goes green to meet export standards
Numerous textile and garment enterprises are intensifying efforts to green their production processes, aligning with environmental standards and regulations concerning product origin.
Qualitative demands for greener practices are increasingly being quantified through policies targeting manufacturers and consumers, particularly regarding taxes as well as waste and emission management.
The European Union (EU), one of the main export markets for Vietnam's textile-garment industry, is vigorously pursuing the European Green Deal, aiming to reduce net emissions by 55% by 2030 compared to the 1990 level and achieve carbon neutrality by 2050.
According to the Ministry of Industry and Trade, the strategy serves as a pillar within the industry, guiding the EU in revising new regulations in various sectors. For the textile and garment industry, key regulations include the ecodesign requirements for sustainable products, waste directives, and extended producer responsibility programmes.
T.Huong
Source: Vitic/VNA