Textile and garment exports expected to grow 8-10% in 2024

The company is promoting signing orders for the fourth quarter of 2024.

Sharing at a press meeting on the afternoon of June 20, Mr. Cao Huu Hieu - General Director of Vietnam Textile and Garment Group said that in the first 5 months of 2024, Vietnam's textile and garment exports reached nearly 16 billion USD, an increase of 5% over the same period last year.

In particular, the bright spot for exports in the US market is when Vietnam's textile and garment industry rose to the top of the garment export market share, surpassing China and leading in growth rate among the three largest textile and garment exporting countries in the world. Specifically, in the first 5 months of 2024, China's textile and garment exports decreased by 2%, reaching 66 billion USD; Bangladesh increased by only 3.9%, reaching 21.7 billion USD (Bangladesh in May 2024 decreased sharply by 16%).

Mr. Cao Huu Hieu - General Director of Vietnam Textile and Garment Group shared about the Group's activities.

However, it is necessary to recognize that the improvement in Vietnam's textile and garment exports in the first 5 months of the year did not come from improved global demand for textile and garment products, but rather from a certain shift in orders from other countries to Vietnam, combined with the exchange rate advantage when the Vietnamese Dong (VND) depreciated by 5% against the USD since the beginning of the year, while the currencies of competing countries remained almost unchanged against the USD.

Mr. Hieu also said that, in the context of a volatile market, businesses in the Group's system have made many improvements in production and business activities. Most garment businesses have had enough production orders until the end of the third quarter of 2024 and continue to negotiate and sign contracts for the fourth quarter of 2024 - the peak production season for Christmas and New Year orders.

In the yarn industry, export orders to major markets such as China, Türkiye, Korea, etc. have approached the break-even point. If production costs can be reduced, profits can be achieved. In the face of fierce competition in the market, many yarn businesses have had to flexibly switch to blended yarns and recycled yarns, which are not their strengths, to find new directions in niche markets besides traditional cotton yarns.

“ In March 2024, the Group and Coats Group (UK) signed a memorandum of understanding on the production of fire-resistant fabric garments with exclusive technology from Coats Group. The goal in the first year is to bring to market fire-resistant fabric products with a value of 5 million USD ," Mr. Hieu informed.

In July 2024, the first orders to Indonesia with 5 thousand meters of fabric will be exported, followed by an order of 50 thousand meters of fabric for the Middle East market and continued to be offered to other markets. " It can be said that this is a new opportunity for the Group and its member units when the market is increasingly fierce and unpredictable ," said Mr. Hieu.

Hard to predict the market in the second half of the year

Sharing about the textile market situation in the second half of 2024, Mr. Hieu emphasized that it is very difficult to predict. Because, in terms of price, due to the textile market being so difficult in 2022 and 2023, a new price level has been formed and has decreased deeply by 20%, even some product codes have decreased by 50% compared to the previous period.

Textile and garment exports are expected to grow by 8-10% in 2024. Photo: Thu Huong

However, businesses are forced to accept, on the basis of price, to innovate management to increase productivity, save costs in order to produce and do business with the highest efficiency.

Negotiation orders for the fourth quarter of 2024 are mainly businesses wanting to raise prices. Since July 1, the minimum wage has increased, and logistics costs from the end of the fourth quarter of 2023 to the first half of 2024 have continuously increased, causing businesses to increase input costs, forcing them to find ways to raise output prices for products.

“ Based on existing signals, especially the situation of many orders in the third and fourth quarters, combined with a 5% growth rate in the first half of the year, it is forecasted that the export turnover of the Vietnamese textile and garment industry in 2024 will increase by 8-10% compared to 2023. For the Group, with more positive signals from the market, especially the fiber industry, the production and business results in the last 6 months of the year will be better than expected ,” Mr. Hieu commented.

Providing more information about the long-term orientation of the flame retardant and fire-resistant fabric segment, the leader of Vietnam Textile and Garment Group said that in the cooperation program between the Group and Coach Group, in phase 1, all fabric products will be exported to the US, the Middle East, Indonesia, and Türkiye.

After this period, the Group focused on mastering the technology, which is currently copyrighted by the partner and transferred. Combined with the cooperation program with Kova Group also in the field of fire-resistant technical fabrics, the Group expects to strongly develop this type of technical fabric with very high demand.

In July 2024, the Vietnam National Textile and Garment Group will put into operation the New Product Development Center. This is a modern, well-invested center and is an important "link" towards the focus of developing the knitted product production chain that has been shaped in the period up to 2025.

Source: https://congthuong.vn/xuat-khau-det-may-nam-2024-du-kien-tang-truong-8-10-327269.html