Vietnam's textile and garment exports to the EU market increased by 3.2% in the first 7 months of 2024
Wednesday, September 4,2024
AsemconnectVietnam - According to General Department of Customs statistics, Vietnam's total textile and garment export turnover to markets worldwide in the first seven months of 2024 reached over 20.27 billion USD, up 6.3% compared to the first seven months of 2023. Textile and garment exports to the EU accounted for 11.55% of the total turnover, reaching over 2.34 billion USD, up 3.2%.
Unit: USD
Source: Statistics from customs data
Main European consumer markets for Vietnamese textiles
In the first 7 months of 2024, Vietnam's textiles and garments will be exported to 26 markets in the EU; in which, the Netherlands and Germany are the 2 largest textile and garment consumption markets of Vietnam, 2 markets alone now account for nearly half of the total textile and garment export turnover to the EU.
In which, the largest export to the Netherlands reached over 686.18 million USD, up 22.14% over the same period in 2023, accounting for 29.29% of the total export turnover of textiles and garments to the EU; in July 2024 alone, exports to the Dutch market reached over 120.84 million USD, down 3.32% compared to June 2024 but up 32.92% compared to July 2023. Exports to the German market in 7 months reached nearly 438.88 million USD, down 15.86% over the same period in 2023, accounting for 18.74%; in July 2024 alone, it will reach over 75.23 million USD, down 14% compared to June 2024 and down 1.82% compared to July 2023.
In the first 7 months of 2024; there are 6 major markets exporting textiles and garments to the EU with a turnover of over 100 million USD; in addition to the 2 main markets of the Netherlands and Germany mentioned above, there are also markets such as: Spain reached over 312.28 million USD, up 0.75% over the same period last year, accounting for 13.33% of the total export turnover of textiles and garments to the EU; France reached nearly 257.17 million USD, up 4.84%, accounting for 10.98%; Belgium reached over 256.96 million USD, up 1.21%, accounting for 10.97%; Italy reached nearly 199.92 million USD, up 6.23%, accounting for 8.53%.
Some notable textile and garment export markets in the first 7 months of 2024, although the turnover is small, but compared to the same period in 2023, the growth is strong such as: Czech Republic increased sharply by 50.96% to nearly 17.94 million USD; Slovakia increased by 71.43% to over 2.98 million USD; exports to the Romanian market increased by 40.27% to 3.87 million USD.
In contrast, textile and garment exports fell sharply in markets such as: Bulgaria decreased by 75.54% to 242,316 USD; Lithiumnia decreased by 99.55% to 6,700 USD; Malta fell 57.52% to nearly $454,480.
Unit: USD
|
Market
|
July 2024
|
Month on month(%)
|
Year on year
(%)
|
7 months of 2024
|
Year on year
(%)
|
Market share (%)
|
|
Total export turnover
|
436,136,787
|
+5.59
|
+10.26
|
2,342,519,518
|
+3,2
|
100
|
|
Netherlands
|
120,842,233
|
-3.32
|
+32.92
|
686,182,191
|
+22,14
|
29,29
|
|
Germany
|
75,232,206
|
-14
|
-1.82
|
438,878,211
|
-15,86
|
18,74
|
|
Spain
|
59,925,019
|
+26.65
|
+4.44
|
312,282,941
|
+0,75
|
13,33
|
|
France
|
51,148,310
|
+10.29
|
+11.69
|
257,166,376
|
+4,84
|
10,98
|
|
Belgium
|
51,128,473
|
+12.03
|
-15.63
|
256,964,430
|
+1,21
|
10,97
|
|
Italy
|
40,385,040
|
+44.48
|
+28.29
|
199,919,712
|
+6,23
|
8,53
|
|
Poland
|
9,666,035
|
+0.05
|
+5.45
|
61,544,282
|
+4,02
|
2,63
|
|
Sweden
|
11,405,683
|
+19.72
|
+24.79
|
53,430,246
|
-4,01
|
2,28
|
|
Denmark
|
7,023,400
|
-18.85
|
+19.43
|
35,068,764
|
-9,18
|
1,50
|
|
Cheque
|
3,460,657
|
+23.15
|
+58.83
|
17,936,425
|
+50,96
|
0,77
|
|
Clothing
|
1,815,313
|
+116.02
|
+104.64
|
5,975,431
|
-15,25
|
0,26
|
|
Finland
|
800,100
|
+30.24
|
-46.78
|
5,585,025
|
-11,78
|
0,24
|
|
Greece
|
620,085
|
+124.19
|
+31.09
|
4,101,953
|
-7,72
|
0,18
|
|
Slovakia
|
588,413
|
-6.46
|
+195.28
|
2,983,227
|
+71,43
|
0,13
|
|
Luxembourg
|
666,345
|
+160.97
|
-22.03
|
2,425,947
|
+7,84
|
0,10
|
|
Hungary
|
51,423
|
+102.39
|
+152.44
|
623,903
|
-26,97
|
0,03
|
|
Ailen
|
2,612,335
|
+21.10
|
-18.26
|
11,908,838
|
-24,21
|
-0,51
|
|
Portugal
|
65,221
|
+28.28
|
+345.56
|
410,388
|
-46,90
|
0,02
|
|
Lev
|
88,432
|
+104.83
|
+29.99
|
242,316
|
-75,54
|
0,01
|
|
Estonia
|
9,581
|
-63.33
|
+43.55
|
67,726
|
-36,69
|
0,00
|
|
Latvia
|
460,133
|
+38.12
|
+151.92
|
2,654,904
|
+2,01
|
0,11
|
|
Lithiumnia
|
2,627
|
-35.50
|
-99.10
|
6,700
|
-99,55
|
0,00
|
|
Malta
|
198,157
|
+73.29
|
-5.24
|
454,480
|
-57,52
|
0,02
|
|
Romania
|
440,669
|
-28.71
|
-1.50
|
3,868,857
|
+40,27
|
0,17
|
|
Slovenia
|
953,262
|
-46.61
|
+150.75
|
6,299,828
|
-55,33
|
0,27
|
Source: Statistics from Customs Data
Imports of textile and garment raw materials are increasing
In July 2024, imports of raw materials of Vietnam's textile and garment industry reached 2.41 billion USD, up 9.46% compared to June 2024 and up to 25.8% compared to July 2023. Generally, in the first 7 months of 2024, imports of raw materials for the textile and garment industry are estimated at more than 15.83 billion USD, up 15.65% compared to the first 7 months of 2023 and up 10.43% over the same period in 2019.
The production activities of enterprises also prospered. According to data from the General Statistics Office, in July 2024, the textile industry production index increased by 2.6% compared to June 2024 and increased by 10.7% over the same period in 2023. Generally, in the first 7 months of 2024, the textile industry production index increased by 12.4% over the same period in 2023. The country's clothing production index increased by 3.5% compared to June 2024 and increased by 9.8% compared to July 2024. Accumulated in the first 7 months of 2024, the country's clothing production index increased by 6.2% over the same period in 2023.
Structure of Vietnamese textiles and garments exported to the EU
Among the types of textiles and garments exported to the EU market in the first 7 months of 2024, non-knitted or crocheted clothing and auxiliary garments (HS code 62) were the most exported, reaching nearly 1.17 billion USD, accounting for 49.94% of the total export turnover of textiles and garments to the EU market. In second place in terms of turnover are ancillary clothing and garments, knitted or crocheted (HS code 61) with a value of over 908.89 million USD, accounting for 38.8% of the total export turnover of textiles and garments to the EU market.
In terms of each specific group of goods in the HS61 and HS62 groups, Outerwear, raincoats, riding gowns, sleeveless gowns, sleeveless jackets, ponchos, over-the-hip jackets, long evening coats, hooded jackets, duffel jackets, etc thin coats (trench coats), gabardines jackets and padded waistcoats made from artificial fibers) reached the highest turnover of 170.33 million USD, down 6.47% over the same period in 2023, accounting for 7.27% of the total turnover.
Next, the group of goods including long pants, overalls with straps, trunks and synthetic fiber shorts of men or boys (excluding knitted or crocheted, underwear and swimwear) reached the highest turnover of 136.89 million USD, down 0.86%, accounting for 5.84% of the total turnover.
Then there are T-shirts, singlets and other bras, knitted or crocheted products made from other textile materials reached 124.52 million USD, up 39.72% over the same period in 2023, accounting for 5.32% of the proportion, exported to the markets of Poland, Belgium, Austria, etc Germany, the Netherlands, Slovakia, Spain, Ireland and Sweden.
Next is the group of T-shirts, singlets and other bras, knitted or crocheted from cotton valued 104.57 million USD, up 6.77%, accounting for 4.46% of the proportion, exported to Belgium, the Netherlands, Slovakia, Spain, Italy, Poland, Germany, Romania, the Czech Republic and Sweden.
Factors affecting textile and garment exports from Vietnam to the EU
Textile and garment exports are currently having good room for growth, many businesses have orders for the whole year, even early next year.
Some textile and garment enterprises expressed concern about the possibility of competitive exporting countries having the ability to sharply devalue the local currency to support exports, sea freight rates continue to increase, the regional minimum wage increases, electricity costs, and financial costs are likely to increase in the near future. In addition, the textile and garment industry is also under increasing pressure on the workforce, enterprises in the industry are lacking about 500,000 workers, focusing on skilled labor, middle-level labor, product management and design.
It is forecasted that the country's textile and garment exports will recover better in the coming months thanks to some of the following grounds:
+ According to the seasonality, the months in the third quarter are the time when Vietnam's textile and garment exports reach the highest of the year.
+ Abundant orders. Most garment enterprises have had enough production orders until the end of the third quarter of 2024 and continue to negotiate and sign for the fourth quarter of 2024 - the peak production season for Christmas and Tet orders.
+ Vietnam's textile and garment exports to major markets, including the EU, are recovering well.
Inflation in major economies is well controlled, helping to increase purchasing power. The inventory in 2023 of brands has decreased, some textile and garment enterprises have now gone through the Industry Association to find smaller companies to reprocess orders. In addition, Vietnamese textile and garment enterprises have also actively diversified their markets and customers over the past time.
Compared to other textile and garment exporting countries, Vietnamese textile and garment enterprises are having an advantage thanks to their geographical location, large port system, ability to produce a variety of high-value products such as vests, winter jackets, swimwear, etc. with rich designs, fast delivery. However, in the long term, if countries catch up with production capacity, Vietnam's textile and garment industry will face many challenges. To avoid this possibility, businesses need to focus on promoting technology investment, optimizing production and supply processes as well as deeply participating in the OBM (original brand manufacturing) or ODM (original design manufacturing) value chain to create a sustainable competitive advantage compared to other countries.
+ The current average lending interest rate of banks is at an attractive level. According to the State Bank announced at the Conference on the Preliminary Review of Banking Activities in the first 6 months of the year and the implementation of tasks in the last 6 months of 2024, the average lending interest rate was 8.3%, down 0.96% over the same period last year.
Although there are still many shortcomings and challenges, with the above advantages, Vietnam's textile and garment industry is expected to complete the export target of 44 billion USD in 2024.
T.Huong
Source: Vitic
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