The development of the Vietnam Textile and Garment industry: In recent years, Vietnam’s textile and garment industry has continuously developed positively, achieving the export growth targets, the next year is higher than the previous year. In the first 6 months of 2019, textile and apparel export turnover reached US$ 18 billion, 8.61% higher compared to the same period in 2018.
In 2018, Vietnam’s textile and garment industry marked an important milestone when export turnover reached over 36 billion USD, an increase of more than 16% compared to 2017 (increased 12.1% in 2015, 4.07% in 2016, 10.8% in 2017). Vietnam’s textile and apparel industry is among the top 3 largest exporters in the world, behind only China and India. Specifically, in 2018, garment export turnover reached the US $28.78 billion, up 14.45%; fabric exports reached the US $1.66 billion, up 25.5%; fiber exports reached 3.95 billion USD, up 9.9%; non-woven fabric export reached 528 million USD, up by 15.54%; Export of textile materials reached the US $1.23 billion, up 14.59%, notably, the surplus-value of the textile industry in 2018 was estimated at the US $ 17.86 billion, up 14.39%.
According to the Report of the Vietnam Textile and Apparel Association, in the first 6 months of 2019, although the world economy tended to slow down due to political and trade fluctuations and conflicts, especially protection policies and trade wars, the textile industry reached a total export turnover of nearly US $ 18 billion, up 8.61% over the same period in 2018; in which, garments reached 14.02 billion USD, up 8.71%. Litchi products reached US $1.02 billion, up 29.9%; fiber and fiber products gained 2.01 billion USD, up 1.1%; geotextile increased by 16.9%; textile accessories by 0.29%.
In terms of export markets, the US is still the largest market of Vietnam with 6-month export turnover estimated at US $ 7.22 billion, up 12.84% over the same period and accounting for 46.9%; followed by the member countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) reaching US $ 2.57 billion, up 11.13%, accounting for 16.71% of the proportion (Japan achieved 1.79 billion USD, up 5.6% and accounting for 11.68%); EU reached 2.05 billion USD, up 10.46%, accounting for 13.36%; South Korea reached 1.37 billion USD, up 5.59%, accounting for 8.91%.
Although achieving satisfactory results, Vietnam’s textile and garment industry is facing difficulties and challenges: US-China trade tensions affecting the exchange rate between currencies and commodity prices. The labor force in Vietnam is higher than some other countries in the region such as Korea, China, leading to the impact on export orders, especially for textile products. Accordingly, some enterprises have only had 70% of new orders compared to the same period in 2018. Especially, the consumption of yarn and raw materials faces many difficulties because the main export market is China (accounting for 60%) cut back on imports.
Meanwhile, garment products also saw a drop in orders. If in 2018, by the middle of the year, many large enterprises in the industry had orders until the end of the year, in 2019, they could only sign small quantity orders and sign monthly. In addition, in recent years, the textile industry has grasped the trend of wanting to develop sustainably, so it is prerequisite to escape from pure processing – purchasing raw materials, semi-finished products (CMT to FOB), designing by themselves. sales (ODM) or own brand (OBM) brand.