Vietnam’s “Investment Online” reported on December 29 that Nguyen Jin Chang, vice chairman of the Vietnam Textile and Apparel Association (Vitas), said that 2020 will be the best year for Vietnam’s textile and apparel exports in the past 25 years. In the first year of negative growth of 10.5%, exports were only US$35 billion, a US$4 billion decrease from US$39 billion in 2019. However, against the background that the total global trade volume of the textile and apparel industry dropped from US$740 billion to US$600 billion, an overall decline of 22%, the decline rate of competitors was generally 15-20%, and some even dropped by 30% due to the isolation policy. The decline in Vietnam’s textile and apparel exports is not large.
Due to no quarantine and production suspension in 2020, Vietnam ranked among the top 5 textile and apparel exporters in the world. This is also the most important reason why Vietnam’s textile and apparel exports can still remain among the top five exporters despite the sharp decline in apparel exports.
The McKenzy report published on December 4, 2020 believes that the profits of the global textile and apparel industry will shrink by 93% in 2020, and there are more than 10 well-known apparel brands and supply chains in the United States. Bankruptcy, about 200,000 people lost their jobs in the country’s clothing supply chain.
At the same time, because production has not been interrupted, Vietnam’s textile and apparel market share continues to grow, reaching 20% of the U.S. market share for the first time, and in many months it occupied the third 1 position.
With the entry into force of 13 free trade agreements including EVFTA, although it is not enough to make up for the decline, it also plays an important role in the reduction of orders.
It is predicted that the textile and apparel market may return to 2019 levels as soon as the second quarter of 2022 and as late as the fourth quarter of 2023. Therefore, 2021 will still be a difficult and uncertain year due to the epidemic. Many new characteristics of the supply chain have emerged, forcing textile and apparel companies to adapt passively.
First of all, the market has been flooded with price cuts, and simple styles of goods have replaced fashion. This has also led to overcapacity on the one hand, and insufficient new capabilities on the other. Online sales are becoming more and more prosperous, and intermediate links Reduce etc.
In view of these market characteristics, Vietnam’s textile and apparel industry’s highest target for exports in 2021 is US$39 billion, which is 9 months to 2 years faster than the general market. Compared with the high target, the general target is exports of US$38 billion, because the textile and apparel industry still needs support from the government in stabilizing the macro economy, monetary policy and interest rates.
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