Many good knitters were honored at the 6th Vietnam Textile and Garment Industry Contest
Just short of orders, textiles also suffer from a deep drop in unit prices
According to Vitas, besides the lack of orders, textile and garment enterprises also face difficulties due to the deep reduction in unit prices, even by over 50%.
On the afternoon of July 19, the Vietnam Textile and Apparel Association (Vitas) informed about the situation of Vietnam's textile and garment industry in the first half of 2023.
According to Vitas, in 2023, the negative impact of the epidemic and political fluctuations in the world will cause global economic growth to continue to decline (in 2021, it will increase by 6%; in 2022, it will increase by 3%. 2023 only about 2%).
The textile and garment industry accordingly was affected by a decrease in orders from major markets such as the US and EU. Specifically, textile and garment export turnover in the first 6 months of 2023 was estimated at 18.6 billion USD, down 17.6% over the same period in 2022. Import turnover was estimated at 10.7 billion USD, down 20.5% and trade surplus of USD 7.9 billion (in the same period of 2022, it was USD 8.8 billion).
Export performance in the first 5 months of 2023 to major markets mostly decreased: the US decreased by 27.1%, the EU decreased by 6.2%, Japan increased by 6.6%, South Korea decreased by 2%, Canada decreased by 10.9 %...
This deep reduction is not only due to the impact of the economy but also from the pressure of "greening" the industry, the supply chain tracing directive of the OECD, the EU and the German Supply Chain Appraisal Law (effective since January 1, 2023).
Vitas forecasts that the situation of production and export will gradually improve, but difficulties will continue until the end of 2023 (Artwork).
Besides, although the State Bank has reduced the operating interest rate 4 times, but due to high deposit interest rates from the end of 2022, loan interest rates are still high. Businesses do not have access to support packages, for example, reducing interest rates by 2% with a package of VND 40,000 billion,...
Vitas forecasts that the production and export situation will gradually improve, but difficulties will continue until the end of 2023, because many businesses have not yet had enough orders for the third and fourth quarters.
"In addition to the lack of orders, accepting orders is not their strength, businesses also face difficulties due to the deep reduction in unit prices, even more than 50% reduction compared to normal," Vitas stated. .
In 2023, the entire textile and garment industry aims to reach 39-40 billion USD. To accomplish the goal, the Association requires businesses to focus on three core issues.
Firstly, find solutions to retain employees, especially the core force. Organizing vocational skills training classes, training human resources for green and digital transformation.
Secondly, retaining customers, accepting orders is not a strength, it is not profitable to have jobs for employees and so that customers do not move elsewhere. Build a reliable, long-term partnership. Exploiting new markets, paying attention to the domestic market.
Third, minimize the unnecessary expenses of the business.
