Orders recover, businesses accelerate to the finish line
According to the Vietnam Textile and Apparel Association (VITAS), the total textile and garment export turnover in the first 9 months of 2024 exceeded 32.5 billion USD, up 9.2% over the same period. With the recent positive situation, VITAS believes that the export target of 44 billion USD of Vietnam's textile and garment industry in 2024 is very feasible because the end of the year is the peak time for orders and production during Christmas and Lunar New Year.
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| The export growth rate of domestic enterprises is nearly twice as high as that of FDI enterprises. (Photo: ST) |
According to information from the Vietnam Textile and Garment Group (Vinatex), in the first 9 months of the year, consolidated revenue was about VND13,036 billion, a slight increase over the same period, achieving 73% of the yearly plan. Pre-tax profit was about VND490 billion, an increase of 70% over the same period, achieving 89% of the yearly target.
Mr. Le Tien Truong - Chairman of Vinatex Board of Directors - said that this year, the market still faces many difficulties, challenges and is not sustainable. The only difference between 2024 and 2023 is that the market changes more favorably after each quarter. Accordingly, in the first 6 months of the year, the whole industry only exported about 20 billion USD, but after that, due to the unstable impacts of competing countries such as Bangladesh and Myanmar, it created short-term advantages for Vietnam's textile and garment industry.
Thanh Cong Textile Company said it has received about 92% of the revenue plan for orders in the fourth quarter and about 90% of the revenue plan for orders in 2024. Thanh Cong Textile expects that in the second half of the year, the export order situation will be more positive and complete the annual business plan.
Similarly, for the footwear industry, according to some businesses, orders will be received until the end of 2024, and some businesses even have orders until the end of the first quarter of 2025. Footwear exports in the past 9 months are estimated to reach 20 billion USD. Ms. Phan Thi Thanh Xuan - Vice President and General Secretary of the Vietnam Leather, Footwear and Handbag Association - said that orders are currently recovering, and the double-digit export growth rate achieved is quite positive. If the current recovery rate of 10% can be maintained, the footwear industry will likely reach the finish line with 27 billion USD in 2024.
In the field of agriculture, forestry and fisheries, Mr. Nguyen Nam Hai - Chairman of the Vietnam Coffee - Cocoa Association (VICOFA) - said that in the 2023 - 2024 crop year from October last year to September this year, Vietnam exported nearly 1.45 million tons of coffee, expected to earn 5.32 billion USD - down 12.7% in output but up 30.4% in turnover. Coffee export turnover in the last crop year also reached a record level for the industry so far.
Seafood exports in the first 9 months reached 7.2 billion USD, up nearly 10% over the same period last year. Thus, after 4 years of disruption due to the Covid-19 pandemic, war, and inflation in the world, the developments of the markets are gradually stabilizing again. Thanks to that, Vietnam's seafood exports have returned to the growth trajectory.
Despite global challenges, Vietnam's exports are on track for a spectacular breakthrough with nine-month turnover reaching nearly 300 billion USD, up 15.4% over the same period in 2023. Exports grew across all product groups, and exports from domestic enterprises grew nearly twice as fast as those from FDI enterprises, which is also a very welcome signal. The trade balance as of this writing has a trade surplus of nearly 31 billion USD.
Exports are expected to set a new record
Regarding export markets, the latest report from the Ministry of Industry and Trade shows that the export turnover of goods to most markets, especially markets that are major trading partners, has recovered well and achieved high growth rates at double digits. The United States continues to be our country's largest export market. Next are the Chinese market, the Korean market, and Japan.
Trade promotion and export market expansion continue to be actively directed by the Ministry of Industry and Trade to the Trade Offices in the countries, combining the exploitation of traditional markets with the expansion of new markets (Africa, Eastern Europe, Northern Europe, West Asia). Therefore, Vietnam's exports to most major markets and trading partners have recovered well and achieved positive growth.
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| VITAS believes that the textile and garment export growth target this year of about 43.5 - 44 billion USD is feasible. (Photo: ST) |
The increasing demand for goods in the world market means that domestic enterprises are receiving more export orders. With the current order situation and looking at the acceleration of input material import, goods export has the prospect of setting a new historical milestone.
Mr. Nguyen Bich Lam - former General Director of the General Statistics Office - assessed that the average monthly export turnover in the first 9 months of 2024 reached 33.29 billion USD, 1.52 billion USD higher than the average monthly export turnover in the first 6 months of 2024. If the export level of each month is maintained higher than the previous month in the fourth quarter of 2024, the total export turnover of goods in 2024 is estimated to set a historical milestone of about 400 billion USD, surpassing the 371.82 billion USD mark of 2022.
According to Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (VITAS), 2023-2024 is an extremely difficult period for the textile and garment export industry. The export turnover of our country's textiles and garments in the past 9 months has increased quite a bit, mainly due to the shift of orders from some countries to Vietnam, not due to increased global market demand. In 2025, the tense relations between some countries that have not cooled down will be an opportunity for Vietnam's textile and garment exports to maintain stability and develop better.
Sharing the same view on this issue, according to the Institute for Strategic Studies and Industry and Trade Policy (Ministry of Industry and Trade), the political crisis in Bangladesh - the world's largest garment exporting country, will open up opportunities for Vietnamese garment enterprises to expand their export markets. This is an opportunity for countries with strengths in the textile and garment industry, including Vietnam, to compensate for the supply of the world market.
Although the export picture is quite bright, Mr. Le Tien Truong also said that businesses still need to be cautious, especially raw material production businesses that have been facing difficulties for the past 30 months.
Meanwhile, for seafood, it will take a long time to restore production in the North due to the heavy impact of storm No. 3, so the seafood industry has set a cautious target for 2024 with export turnover reaching nearly 10 billion USD, up 7% compared to last year. The Ministry of Agriculture and Rural Development recommends that in the fourth quarter, most import markets are increasing strict standards, so businesses need to focus on sustainability certifications to continue to maintain competitiveness.
In the export picture of the last quarter of the year, there are both advantages and difficulties intertwined. In order to achieve the most positive export results in the remaining months, the Ministry of Industry and Trade said that it will continue to support industries and businesses to promote export promotion activities for key markets, especially making the most of incentives brought by FTAs such as: CPTPP, EVFTA, RCEP... to diversify export markets. In addition, it will accelerate negotiations, signing, and ratification of FTAs, new economic linkages, first with Israel and UAE, to diversify markets, supply chains and boost exports.
Associate Professor, Dr. Dinh Trong Thinh - Economic expert commented: With the current order situation and looking at the acceleration of input material imports, if businesses make efforts from now until the end of the year, in 2024, Vietnam is likely to reach the 800 billion USD import-export mark, far exceeding the record import-export of 732 billion USD in 2022. |
Source: https://congthuong.vn/xuat-khau-ky-vong-lap-moc-lich-su-moi-351881.html
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