Vietnam's textile and garment industry is expected to recover strongly in 2024 thanks to increased demand, reduced inventories, favorable economic prospects and an attractive investment environment.
The revival of the textile industry
2024 sees a strong recovery of textile industry Vietnam, with an impressive export growth of 8.9% in the first 9 months of the year compared to the same period last year. This positive signal shows that Vietnam's key industry is on the rise.
Key export markets such as the United States, Japan, South Korea and China are still driving growth. However, the rise of emerging markets such as ASEAN, Russia and Canada is opening up golden opportunities for Vietnamese textile and garment enterprises to expand production and exports.
One factor contributing to the industry's revival is the significant reduction in inventories of major global fashion brands. Nike reduced its inventories by 11%, followed closely by Levi's at 7%. This signals that demand for textiles is increasing, creating incentives for Vietnamese businesses to increase production.
Along with that, inflation in the United States has cooled down and the US Federal Reserve (Fed) has cut interest rates, which are expected to continue to be reduced by the end of the year. These positive developments are expected to boost market demand, opening up brighter prospects for the Vietnamese textile and garment industry.
Vietnamese textile and garment enterprises are placing high expectations on improving order prices in the coming time. With positive signals from the market, the export target of 44 billion USD in 2024 is completely within reach.
According to Mr. Le Tien Truong, Chairman of the Board of Directors of Vietnam National Textile and Garment Group (VINATEX), Vietnam is becoming an attractive destination for international textile and garment investors thanks to its favorable business environment and economic and political stability. The legal system is increasingly being improved, creating peace of mind for businesses operating in Vietnam.
In addition, the outstanding production capacity of the Vietnamese textile and garment industry is also a competitive advantage. The skilled and experienced workforce can meet difficult orders with high quality requirements, helping Vietnamese enterprises always gain the trust of their partners.
Sharing the same view, Ms. Le Nguyen Trang Nha, Executive Committee Member of the Ho Chi Minh City Textile, Embroidery and Knitting Association, General Director of Viking Vietnam Company, emphasized that Vietnam also possesses great potential in the field of waste recycling and selling raw textile materials.
Ms. Nha cited examples of some foreign enterprises such as China and Taiwan that have invested in building factories in Vietnam to purchase and recycle waste into fibers. export. However, Vietnamese factories then have to import this recycled fiber for production. Similarly, in the silk sector, Vietnam has abundant raw materials but domestic enterprises have to import silk yarn or fabric from abroad.
These facts show that Vietnam still has many opportunities to develop the textile and garment industry in a sustainable manner and make the most of domestic resources.
In addition, the Vietnamese textile and garment industry still faces a number of challenges. Unstable market demand, rising shipping costs and production costs can affect production and business performance. Enterprises need to proactively respond to these challenges to ensure sustainable development in the future.
Take advantage of incentives, update technology to innovate
In order to find markets and connect supply and demand of textile and garment products, recently, ministries, branches and related units have organized many events not only domestically but also internationally.
Notably, a series of exhibitions have been held, such as the International Exhibition of Textile & Garment Industry – Equipment, Materials & Fabrics 2024 (HanoiTex & HanoiFabric). This is the leading event in the Vietnamese textile and garment industry, held annually in Hanoi in October. With the sponsorship and coordination of industry management agencies, HanoiTex & HanoiFabric has become an ideal platform to showcase the latest trends and technologies, and connect domestic and foreign businesses.
Taking place on an area of over 6,000m², HanoiTex & HanoiFabric 2024 brings together more than 210 exhibitors from 10 countries and territories. Participating businesses will introduce the most modern products, equipment, fabrics and raw materials, meeting the diverse needs of the textile and garment industry.
HanoiTex & HanoiFabric is a golden opportunity for Vietnamese enterprises to approach international partners, seek cooperation opportunities, expand markets, update information and improve competitiveness. Through the exhibition, enterprises can learn from advanced equipment and raw material suppliers, and expand business relationships globally.
The exchange and sharing of experiences with foreign partners also helps Vietnamese enterprises improve product quality, improve production processes and approach international standards. From there, enterprises can develop sustainably, expand their scale and affirm their position in the global market.
At the exhibition, Mr. Le Tien Truong - Chairman Vietnam Textile and Garment Group (Vinatex) shared: “ At HanoiTex & HanoiFabric this year, the latest trends and technologies in the production of textile materials and various fabrics will be displayed, while focusing on prestigious domestic and international brands of textile equipment and machinery. In addition, the exhibition is expected to welcome nearly 10,000 trade visitors ", Mr. Le Tien Truong added, thereby, this is an opportunity for domestic and foreign businesses to meet, cooperate, promote their brands, seek partners and expand the market.
With its large scale and the participation of many prestigious enterprises, HanoiTex & HanoiFabric 2024 is an event not to be missed for enterprises in the textile and garment industry. The exhibition has created a vibrant trading market, bringing many opportunities for meeting, cooperation and business development for domestic and foreign enterprises.
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