TEXTILE AND GARMENT SECTOR POSTS NEARLY $10 BILLION TRADE SURPLUS IN H1

According to the Vietnam Textile and Apparel Association (VITAS), textile and garment exports reached an estimated US$22.2 billion in the first half, up 1.7 per cent from a year earlier.

Production at Tinh Lợi Garment Company in Hải Dương Province. — VNA/VNS Photo

HÀ NỘI — The textile and garment industry generated an estimated trade surplus of nearly US$10 billion in the first six months of this year, despite weak global demand, intense price competition and continued reliance on imported raw materials.

The industry is aiming to achieve its full-year export target of $48 billion.

According to the Vietnam Textile and Apparel Association (VITAS), exports reached an estimated $22.2 billion in the first half, up 1.7 per cent from the previous year.

Among export categories, shipments of fibres, fabrics, accessories and nonwoven fabrics posted growth of between 5.6 per cent and 10.6 per cent, while garment exports edged down 0.4 per cent as demand in major overseas markets remained subdued.

Export data for the first five months showed that the US remained Việt Nam's largest market, with shipments worth $6.81 billion, up 1.3 per cent year on year and accounting for around 45 per cent of total exports.

The European Union (EU) was a bright spot, with exports rising 8.8 per cent to $1.94 billion but shipments to Japan and South Korea fell 6.2 per cent and 8.9 per cent, respectively.

VITAS said the industry continues to face headwinds, including sluggish demand in key export markets, mounting price competition and dependence on imported raw materials, which account for 60-70 per cent of total inputs.

Rising compliance costs related to environmental, social and governance (ESG) standards, stricter traceability requirements and uncertainties surrounding global trade policies are also adding pressure on exporters.

To meet its export target this year, the industry aims to maintain monthly exports of more than $4 billion in the second half.

VITAS said this would require companies to adapt to changing sourcing strategies adopted by global brands, expand domestic raw material supply, diversify export markets and products, strengthen risk management and accelerate investment in technology, automation and digital transformation. — VNS

Source: VNS