Vietnam’s “Investment Online” reported on December 29 that Nguyen Jin Chang, vice chairman of the Vietnam Textile and Garment Association (Vitasdfssdfss), said that 2020 is the first time in 25 years that Vietnam’s textile and garment exports have experienced a negative growth of 10.5%. For one year, 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 11%, 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.
In 2020, due to the absence of quarantine and production suspension, 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 profits in the global textile and apparel industry will shrink by 93% in 2020, with more than 10 well-known companies in the United States Clothing brands and supply chains went bankrupt, and about 200,000 people in the country’s clothing supply chain lost their jobs.
At the same time, as production has not been interrupted, Vietnam’s textile and apparel market share continues to grow, reaching 20% of the US market share for the first time, many of which It still holds the No. 1 position in the past month.
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 early as the second quarter of 2011 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 popular. The more prosperous, the fewer intermediate links, etc.
Based on these market characteristics, Vietnam’s highest target for the textile and apparel industry in 2021 is to export 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. </p
