Seoul – The Vietnam Textile and Apparel Association (VITAS) and the Korea Federation of Textile Industries (KOFOTI) have signed a memorandum of understanding (MoU) to strengthen bilateral cooperation, KOFOTI announced on August 24.
Many producers in the textile apparel sector are on tenterhooks as export orders are increasingly shifting to other countries like Bangladesh or India for more favourable pricing. Thanh Cong Textile Garment Investment and Trading JSC (TCM) incurred shortages of export orders from the second quarter (Q2) of this year, leaving its factories running below their capacity.
According to a report of the Ministry of Labour, Invalids and Social Affairs (MoLISA) released on June 5, workers in the garment and textile sector suffered the most from a series of job cuts in the first five months of this year, with 70,000 workers losing their jobs and 66,600 having their working hours reduced.
In the first quarter of the year, Vietnamese textile and garment exports decreased nearly 18 per cent on-year to more than US$7 billion, according to General Department of Vietnam Customs statistics.
Many apparel, textile and spinning firms are setting 2023 business targets far below last year's figures amid gloomy market conditions and sinking orders. In the first four months of this year, textile apparel exports were hit by an economic slump and high inflation on a global scale, leading to a 19.3 per cent plunge in value on-year, falling to $9.57 billion.
The Vietnam Textile and Apparel Association (VITAS) forecast garment exports to reach more than USS$45 billion in 2023, higher than this year value of $44 billion, driven by the opportunities provided by new-generation free trade agreements (FTAs).
Textile and garment businesses are facing pressure due to weaker purchasing power caused by mounting inflation and other global uncertainties. Sharp export declines were recorded in the US, Europe, Japan, the Republic of Korea (RoK), and China, according to the General Statistics Office.
Attracting green projects into input manufacturing, forming supporting industries and digitizing production processes are key to the sustainable development of the textile and garment industry in the new context.