Ministry Of Commerce: Vietnam'S Textile Export Is Estimated To Be US $3.1-3.4 Billion Per Month In The Last Four Months

1. Vietnam Industrial and Commercial Daily reported on September 19, 2022 that in the remaining four months of 2022, Vietnam's textile industry is expected to reach only $3.1-3.4 billion per month, which is significantly lower than the average value in the first eight months of this year.

At the 2022 economic and social development forum held recently, Li Jinchang, chairman of Vietnam textile and Garment Group, said: due to the downturn of the world economy and the aggravation of inflation, the world market has suddenly become "cold" and the demand has dropped sharply. In the first six months of this year, the inflation rate of the U.S. economy increased by 9% compared with that in June 2021, but the price of textiles fell by 9%, and the inventory rose sharply.

In the first eight months of this year, Vietnam's textile exports can reach US $3.7-3.8 billion per month, but it is estimated that in the last four months of this year, only US $3.1-3.2 billion will be exported each month.

On the other hand, Vietnam's macro-economy is stable, and the value of Vietnam's currency is relatively high. The currencies of competitors India and China have depreciated by 8% and 9% respectively against the US dollar. Vietnam's exports are losing their price advantage.

In the first eight months of this year, the export volume of Vietnam's textile and clothing industry was about 30.2 billion US dollars, with a year-on-year growth of nearly 20%. This is a growth rate that has not been seen in more than a decade.

In addition, according to the data of the General Administration of customs, the import volume of raw materials and auxiliary materials of the textile industry in the first eight months was only about 13 billion US dollars. The textile industry created a trade surplus of 17 billion US dollars.

In particular, in the first eight months of this year, the localization rate of the textile industry reached 57% (higher than the average annual level of 50%), approaching the target of 60% by 2025.

According to the tracking of the market trend and the prediction of experts and institutions at home and abroad, Mr. Li Jinchang said that the market trend in the last four months of 2022 and 2023 was quite low.

2. Vietnam's Vietnam News Agency reported on September 23 that Vietnam's textile industry broke through the $4 billion mark for the first time in August after realizing an average monthly export value of US $3 billion for six consecutive months. From January to August, Vietnam's total textile exports reached 26 billion US dollars, an increase of 24% over the same period of last year. The contribution rate of Vietnam's textile export growth was second only to machinery and equipment and spare parts, ranking the second among all export commodities.

In the first eight months of this year, Vietnam's textile and clothing exports to its main markets maintained a growth rate of more than 20%. Among them, exports to the United States and the European Union increased by 22.6% and 41.1% respectively; Exports to Japan reached US $2.54 billion, up 22%; Exports to South Korea reached US $2.14 billion, an increase of 20.5%.

Vietnam's textile industry broke through the $4 billion mark in August for the first time after achieving an average monthly export value of US $3 billion for six consecutive months, Vietnam's Vietnam News Agency reported on September 23. From January to August, Vietnam's total textile exports reached 26 billion US dollars, an increase of 24% over the same period of last year. The contribution rate of Vietnam's textile export growth was second only to machinery and equipment and spare parts, ranking the second among all export commodities.

In the first eight months of this year, Vietnam's textile and clothing exports to its main markets maintained a growth rate of more than 20%. Among them, exports to the United States and the European Union increased by 22.6% and 41.1% respectively; Exports to Japan reached US $2.54 billion, up 22%; Exports to South Korea reached US $2.14 billion, an increase of 20.5%.

3. According to the data of Vietnam's General Administration of customs, Vietnam's textile and clothing exports reached a new high in July, with the export volume exceeding US $3 billion for five consecutive months. By the end of July, the export volume of textiles and clothing exceeded 22.2 billion US dollars, up 20% year on year. Strong inflation and large inventories in the United States and Europe will significantly reduce the purchasing power of textiles and clothing, affecting business orders in the third quarter, according to a report by Chenggong textile investment and Trading Co., Ltd. Century yarn company is in a similar situation. Deng Zhaohua, vice president of century yarn company, said that new orders began to decline in the third quarter due to high inflation. In addition, the conflict between Russia and Ukraine has led to the rising prices of raw materials and, of course, the prices of auxiliary materials. Among them, the price of cotton has increased by 19.1%, and the freight rate has also increased by three times, making the production cost of domestic enterprises in Vietnam rise by more than 20%. In addition, as one of the main textile and clothing consumer markets, the European Union is also experiencing the biggest depreciation of the euro in the past 20 years. This greatly affects order revenue.