With a turnover of 44 billion USD, a growth of nearly 11% compared to 2023, Vietnam is likely to surpass Bangladesh to become the world's second largest textile and garment exporter.
At the press conference to inform about production and business activities, labor movement 2024 - orientation 2025 of Vietnam Textile and Garment Group on the 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 rank second 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.
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| Vietnam Textile and Garment Group informs about production and business activities in 2024 and orientation for 2025. Photo: Nguyen Kien |
There was a sudden reversal in the last 6 months of the year, not because the market suddenly improved, but because of political instability in some rival markets such as Bangladesh, buyers 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 mass production market, so prices have not improved much, but the 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 many enterprises currently have orders until the end of the first quarter of 2025, with a few enterprises having orders until April and May 2025.
In addition to the special features of orders, in 2024, the Vietnam Textile and Garment Group in particular and textile and garment 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 the garment industry, but also in the fiber industry, " Mr. Hieu emphasized. One of the causes of labor shortages is that workers leave their jobs to work abroad.
It can be seen that in 2024, domestic textile and garment enterprises experienced many difficulties. However, with the efforts of enterprises and investment preparation from previous years, textile and garment enterprises overcame 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 core resources such as labor and customers.
In addition to production and business results, the Group's highlight in 2024 is to continue developing the supply chain to become a one-stop destination, putting the Vinatex Fashion Product Development and Business Center into operation; exploiting new markets and niche markets with special, high-tech products such as fire-resistant fabrics and clothing (business cooperation with COATS Group, UK), researching and developing new types of Filament core yarns and blended yarns; thoroughly deploying the enterprise resource management system on a digital platform...
By 2025, according to forecasts from many major financial institutions and growth results from some of Vietnam's major textile and garment export markets, the textile and garment market is showing signs of improvement.
However, businesses are 'eagerly' following US policies after Mr. Donal Jonh Trump took office. The US may implement a new tax policy with China of up to 60%, some countries from 10-20%. With that possibility, Vietnam may be subject to an additional 10% tax on goods exported to this market.
Further analyzing the 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, Vietnam's textile and garment industry will not face too many difficulties in the long term. Vietnam can even equalize prices with Chinese goods.
Regarding the 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: https://congthuong.vn/vuot-bangladesh-viet-nam-vuot-len-vi-tri-thu-2-ve-xuat-khau-hang-det-may-366119.html
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