Garment industry exports make recovery

Many garment companies have reported 10-15% year-on-year increases in exports in the first quarter and receiving enough orders to last until the third.

A spokesperson for Saigon 3 company said that garment exports have improved and the order book is full for until July.

"Demand from the U.S. has recovered, and so the company's first quarter revenues were up from the same period in 2023."

Than Duc Viet, CEO of Garco 10, said his company’s revenues rose 15% year-on-year and it has enough orders for until the end of the third quarter.

This year it is expanding its customer base and targets revenues of VND4.5 trillion (US$180.3 million), up 6.6% from 2023, and profits of VND130 billion, a 5.7% increase, he said.

Major textile company Thanh Cong is targeting a 20% rise in profits.

Vu Duc Giang, chairman of the Vietnam Garment and Apparel Association, said the garment industry has shown improvement and the increased order volumes would help enterprises recover from a rough 2023.

Last year exports had declined by over 9% to $40.3 billion due to weaker demand in major markets such as the U.S. and EU.

But they rose by 9.62% in the first quarter of this year to $9.53 billion, according to customs data.

At the current trajectory, the export target of $44 billion for this year is well within reach, Giang said.

But garment businesses are concerned that geopolitical conflicts could stymie recovery.

Many are pessimistic since the higher shipping costs caused by tensions in the Red Sea have hit their profits badly.

They are also under pressure to meet global fashion brands’ stringent requirements with respect to sustainability, extended producer responsibility, digital transformation, and environmental, social and corporate governance.

Concurring with this, Giang said garment exports to the EU might decline due to higher standards on emissions set by the European Green Deal.

Vietnamese businesses need to proactively embrace green transformation, amend their production processes and invest in new technologies to maintain their competitiveness and meet the demands of global supply chains, he added.

Source: VnExpress