Overcoming difficulties, Vietnam's fiber exports to grow 2.85% in 2024

In 2024, Vietnam's fiber exports are estimated to reach 4.48 billion USD, an increase of 2.85% compared to 2023. This is a very positive figure in a very difficult context for the industry.

Fiber is an important export industry in Vietnam's textile and garment industry. Data from the Vietnam Textile and Apparel Association shows that in 2024, fiber exports are estimated to reach 4.48 billion USD, an increase of 2.85% compared to 2023. Looking at the statistics of fiber exports from 2019 to present, it can be seen that exports fluctuate from 3.7 - 5.6 billion USD - a not small number in the industry's exports.

In 2024, Vietnam's fiber exports will grow by 2.58%. Illustrative photo.

Regarding the challenges of enterprises in the fiber industry, a representative of the Vietnam Textile and Garment Group said that the fiber industry is facing external challenges such as sensitivity to fluctuations in macro factors, especially raw material prices; internal challenges are chain linkage and differences in governance, leading to differences in efficiency.

Although the market is still relatively gloomy for yarn businesses when order prices are still very low, with many cost-saving solutions and optimization in production, many yarn businesses of the Vietnam Textile and Garment Group have made profits, surpassing the break-even point.

For Phong Phu Joint Stock Corporation, in the yarn industry alone, revenue in the first 9 months of 2024 reached 696 billion VND, profit 60.2 billion VND, equal to 80% of the annual revenue plan. Phu Bai Fiber Joint Stock Company, in the first 9 months of 2024, reached 955 billion VND in revenue, pre-tax profit reached 9.2 billion VND, equal to 91% of the annual revenue plan.

Also surpassing the break-even point, Vinatex Phu Hung Joint Stock Company had revenue up to the end of October 2024 reaching 656.23 billion VND, of which profit reached 4.3 billion VND; Hue Textile and Garment Joint Stock Company had a 9-month fiber industry profit of 16.77 billion VND, equal to 99% of the pre-tax profit plan for 2023. Many other fiber enterprises in the group such as Vinatex Hong Linh Joint Stock Company, Viet Thang Corporation, Vinatex Phu Cuong Fiber Factory have reduced losses compared to the same period in 2023 and are closer to the break-even point.

Mr. Vu Duc Giang - Chairman of the Vietnam Textile and Apparel Association - said that by 2024, the textile and garment industry will gradually improve, with more abundant and diverse daily orders. However, that is only for the garment industry, businesses in the fiber industry are still facing many difficulties.

The leader of the Vietnam Textile and Apparel Association said that before the US applied the Uyghur Forced Labor Prevention Act, Vietnam's yarn exports to the Chinese market were very good. However, since the law was applied, China has actively produced yarn from Xinjiang cotton for domestic consumption, as well as manufacturing products for consumption in the African and Middle Eastern markets, which has affected Vietnam's yarn industry.

“ This impact will not only be in 2025 but will last longer. If the US does not change the Uyghur Forced Labor Prevention Act, it will affect the global fiber industry, not just Vietnam ,” Mr. Giang emphasized.

The solution to this problem, Mr. Giang said, is that there is no other way, domestic enterprises must restructure some yarn lines, adapt to the requirements of the textile and dyeing industry, such as sustainable yarn lines, environmentally friendly yarns, recycled yarns, etc. At the same time, diversify the cotton supply for domestic yarn production.

Source: https://congthuong.vn/vuot-qua-kho-khan-xuat-khau-soi-cua-viet-nam-tang-truong-285-trong-nam-2024-362690.html