According to a report in the “Data and Events” magazine of the General Administration of Statistics of Vietnam on October 26, since the fourth quarter of 2022, Vietnam’s textile exports have faced many difficulties, and the export volume has continued to decline. Export volume in September was US$25.51 billion, a year-on-year decrease of 12.1%. Among them, exports to the United States were US$11.33 billion, down 18.3%; exports to the EU were US$2.86 billion, down 13.1%; exports to ASEAN were US$1.54 billion, down 10.5%. The full-year export volume is expected to be US$40 billion, a year-on-year decrease of 9-10%.
Reports say that the main reasons for the decline in Vietnam’s textile exports are: first, the global economic downturn, shrinking demand and reduced orders in traditional markets such as the United States, the European Union, and Japan; second, the United States European customers transfer orders to Central America, Africa and other places with more advantageous geographical locations and cheaper labor to reduce transportation and labor costs; third, some markets such as the European Union have put forward green and environmental protection requirements for imported textiles, and have strict requirements on product quality and raw material sources. Such demanding requirements will increase export resistance. In addition, the EU is considering implementing an extended producer responsibility (EPR) system for textiles. Once this system takes effect, it will bring severe challenges to Vietnam’s textile exports. Facing the complex market environment, the Vietnam Textile and Apparel Association (VITAS) believes that Vietnam’s textile export difficulties will continue until early 2024. </p
