(PLVN) - Vietnam's textile and garment industry has reached its revenue target for 2024 as expected despite many fluctuations in the world economy. However, in order to achieve the set target for 2025, there are still many issues that need to be changed.
Export turnover reached 44 billion USD
Mr. Vu Duc Giang - Chairman of the Vietnam Textile and Apparel Association (Vitas) said that despite the complicated and unpredictable developments in the world, escalating conflicts in many regions; strong fluctuations in gasoline and oil prices, transportation costs, slow recovery of the trade economy, decline in total global investment, natural disasters, climate change, and complicated developments in energy security, the Vietnamese textile and garment industry still maintains a fairly good growth rate.
Accordingly, textile and garment export turnover (KNXK) in 2024 is estimated to reach 44 billion USD as expected, up 11.26% compared to 2023, import turnover (KNNK) is estimated to reach 25 billion USD, up 14.79%; trade surplus is 19 billion USD, up 6.93% compared to 2023. Traditional import markets all increased, of which the highest increase is the United States with an estimated turnover of 16.71 billion USD, up 12.33% compared to 2023; Japan is estimated at 4.57 billion USD, up 6.18%; EU is estimated at 4.3 billion USD, up 7.66%; Korea is estimated at 3.93 billion USD, up 10.36%.
Notably, the Chairman of Vitas said that although prices have not increased, the results in 2024 are still positive. The reason is that enterprises have taken advantage of shifting export orders from some countries, typically China; quickly adapting to the requirements of the import market. Currently, most textile and garment enterprises have orders until the first quarter of 2025 and are negotiating orders for the second quarter of 2025. However, unit prices have not increased, so Vietnam's textile and garment industry needs to improve further to be able to increase unit prices.
Need to be self-sufficient in raw materials to take advantage of free trade agreements
Facing favorable trends and opportunities from free trade agreements (FTAs), the textile and garment industry aims to export about 47 - 48 billion USD in 2025. According to Mr. Truong Van Cam - General Secretary of Vitas, in 2025, Vietnam's textile and garment industry will have many advantages when international trade is expected to recover strongly, promoting global economic growth and creating favorable conditions for businesses; Digital transformation, sustainable development and new FTAs will be the main trends driving global economic growth.
In addition, Vietnam also has advantages such as stable politics and macro-economy; advantages in labor prices and skills compared to some countries; new generation FTAs opening up markets with large populations and high incomes (such as CPTPP with 500 million people, accounting for 15% of global trade and 13% of GDP; EU with 500 million people, accounting for 20% of trade and 26% of GDP, RCEP with 2.2 billion people, GDP of 26,200 billion USD), especially the roadmap to reduce textile and garment tariffs to 0%...
However, Vietnam's textile and garment industry still faces a series of requirements and challenges from major markets such as the "sustainable textile and garment" strategy with 3 standards of durability, reusability, recycling from fiber to fiber and mandatory recycled content; Enterprises must print data related to standards and production processes. Along with that, there is a trend of changing from "fast fashion" to "sustainable fashion" towards circular business (for example, the EU prohibits companies from throwing away unsold clothes or reporting the amount of waste); Supply chains must be monitored for labor and environmental standards...
Notably, along with the advantage of taking advantage of FTAs, Vietnam's textile and garment industry also faces the requirement of self-sufficiency in raw materials to take advantage of tax incentives of FTAs.
In that situation, according to Mr. Cam, Vietnamese textile and garment enterprises need to build Vietnamese fashion brands to conquer the domestic market and gradually export with Vietnamese brands; Improve their position in the global value chain; Improve labor productivity and product quality through technological innovation, automation, robotization, digital management; Green production through saving and using renewable energy, recycling, reusing raw materials, wastewater, and waste in the direction of circular business; In particular, it is necessary to effectively link enterprises in the industry, between Vietnamese enterprises and foreign-invested enterprises to build a sustainable supply chain.
Vitas General Secretary also said that, in addition to the efforts of enterprises to maintain their export position, the State also needs to have forms of support for the industry to soon achieve the set goals. For example, "it is necessary to support funding for training in complex occupations such as weaving, dyeing..., which with the financial autonomy mechanism, schools are not capable of doing, considering this as a public investment" - Mr. Cam suggested.
At the same time, maintain effective support packages for businesses and workers such as reducing VAT, land tax, debt freezing, debt extension, and maintaining the debt group until the end of 2025. Research and establish a support package for dual transformation (greening, digitalization) with easy-to-access conditions. In addition, Vitas also proposed to accelerate FTA negotiations between ASEAN and Canada, with textile origin less than 3 stages, which Vietnam and Canada are both interested in.
Source: https://baophapluat.vn/det-may-viet-nam-doi-dien-nhieu-thach-thuc-trong-nam-2025-post535604.html
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