Textile and apparel exports looking at significant recovery in 2021
Textile and apparel exports looking at significant recovery in 2021
Textile and apparel exports are expected to recover significantly this year due to the large-scale vaccination schemes underway in key markets.
Export of textile and apparel items envisions bright prospect in the second half this year
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According to statistics from the General Department of Vietnam Customs, Vietnam’s total textile and apparel export value stood at $35.2 billion, down nearly $4 billion on-year due to the COVID-19 outbreak affecting Vietnam’s major export markets, including the US, EU, and Japan.
However, the industry is forecasted to recover strongly this year as a vaccination scheme is being implemented across high-consumption countries for fashion products. In fact, successful control of the pandemic will accelerate market rebound, prompting demand for personal expenditure.
Le Tien Truong, deputy chairman of the Vietnam Textile and Apparel Association (Vitas), predicted that textile export turnover will likely achieve $39 billion, equal to that of 2019. The market is showing more positive signals from June due to current vaccination programmes working towards global immunity.
Truong added that the main commodity group from June will be autumn and winter clothing, which is generally high-value, helping to revive the sector.
| Enterprises expect that the figure will continue to increase in the forthcoming time as the $1.9 trillion aid package disbursed by the US administration for businesses and residents will stimulate the appetite for fashion products. |
Recent figures by the Vietnam General Department of Customs show that textile and apparel exports in January-February maintained growth momentum by hitting nearly $6 billion, up 7.7 per cent compared to the same period in 2020. Notably, the export volume to the US, Vietnam’s largest consumer, expanded by 8 per cent, accounting for 41 per cent of the industry’s total exports. Enterprises expect that the figure will continue to increase in the forthcoming time as the $1.9 trillion aid package disbursed by the US administration for businesses and residents will stimulate the appetite for fashion products.
Data from TNG Investment and Trading JSC showed that the revenue in January increased by 24 per cent and the accumulated profit in the first two months exceeded the same period in the previous year by 14 per cent. A company representative reported that the company has signed contracts until June.
Le Ngoc Thanh, deputy director of Vinatex’s Nam Dinh spinning branch, said that the production and sale of yarn had been gradually improving since December 2020, despite the high price of cotton. The firm has signed a contract to produce yarn until the end of April. Thanh added that the profit is expected to hit over VND5 billion ($217,390) in the first quarter. If the market remains stable, the profit may be 1-2 times higher than in the previous quarter.
According to Tran Thi Kim Chi, general director of Phu Bai Spinning JSC, the enterprise has received orders until May and has even had to decline further orders.
Chi noted that as the market was beset by fluctuations due to the pandemic, her firm needed to balance the price of exported goods and cotton, maintaining production and ensuring business efficiency. The company’s revenue in the first quarter is estimated at VND192 billion ($8.35 million) and in the next quarter may reach VND218.5 billion ($9.5 billion).
