At press conference to inform about production and business activities, labor movement in 2024 - orientation to 2025 of Vietnam Textile and Garment Group on morning of December 25, Mr. Cao Huu Hieu - General Director of the Group said that with a turnover of 44 billion USD, a growth of nearly 11% compared to 2023, Vietnam is likely to become the 2nd place in the world in textile and garment exports.
Mr. Hieu also informed that domestic textile and garment enterprises had a very difficult year in 2023, for the first time in 30 years, the industry's export turnover decreased. Entering the first months of 2024, the market is still very difficult when the world economy continues to decline, inflation increases, political instability with many hot spots arising, especially demand does not increase. Small orders, strict requirements, fast delivery time and very low unit prices.
In the last 6 months of the year, there was a sudden reversal, but not due to a sudden improvement in the market but due to political instability in some rival markets such as Bangladesh, the order bookers redirected their orders and Vietnam was given priority. From July 2024, orders were more abundant, prices improved slightly. According to Mr. Hieu, this can be considered a lucky thing for garment enterprises.
"Bangladesh is a market for mass production, so prices have not improved much but number of orders is much larger. This helps garment enterprises in general and the Group in particular, to have many orders from July to December 2024," Mr. Hieu informed. At the same time, he said that currently, many enterprises have orders until the end of the first quarter of 2025 and a few enterprises have orders until April and May 2025.
In addition to special features of orders, in 2024, Vietnam Textile and Garment Group in particular and textile enterprises in general will also face difficulties in labor fluctuations. Some units under the Group will have fluctuations of up to 20%. "Labor fluctuations are expected to continue in 2025, not only in garment industry but also in the fiber industry," Mr. Hieu emphasized. One of causes of labor shortages is that workers quit their jobs to work abroad.
It can be seen that in 2024, domestic textile and garment enterprises have experienced many difficulties, however, with efforts of enterprises and investment preparation from previous years, textile and garment enterprises have overcome and finished the year with relatively positive results.
As for the Vietnam Textile and Garment Group, consolidated revenue is estimated at VND 18,100 billion, equal to 102.8% compared to 2023; consolidated profit is estimated at VND 740 billion, equal to 137.5% compared to 2023; average income is VND 10.3 million/person/month, equal to 108.9% compared to 2023. In particular, the Group has preserved its core resources of labor and customers.
In addition to production and business results, the Group's highlight in 2024 is to continue developing supply chain to become a one-stop destination, putting Vinatex Fashion Product Development and Business Center into operation; exploiting new markets and niche markets with special, high-tech products such as fabrics and fire-resistant clothing (business cooperation with COATS Group, UK), researching and developing new types of Filament core yarns and blended yarns; thoroughly implementing the enterprise resource management system on a digital platform...
By 2025, according to forecasts from many large financial institutions and the growth results of some major textile and garment export markets of Vietnam, the textile and garment market is showing signs of improvement.
However, businesses are 'eagerly' following US policies after Mr. Donal Jonh Trump takes office. The US may implement a new tax policy with China of up to 60%, some countries from 10-20%. With that ability, Vietnam is likely to bear an additional 10% tax on goods exported to this market.
Analyzing further challenges of Vietnam's textile industry if the US imposes an additional 10% tax on goods, Mr. Hoang Manh Cam - Deputy Chief of Office of the Board of Directors of Vietnam Textile and Garment Group said that in the case of additional tax, the Vietnamese textile and garment industry will not face too many difficulties in the long term. Vietnam can even equalize prices with Chinese goods.
Regarding flow of goods moving from Bangladesh to Vietnam or the new tax policies of the US, the Group's representative noted that businesses need to act skillfully to avoid becoming a tax 'dodging' point for investors.

Source: Vitic/ congthuong.vn