Apparel sector is facing smaller demand and fiercer competition
The global apparel demand is forecast to decrease by nearly 5% annually this year to around 700 billion USD, resulting in a decrease of 25-27% in the number of orders.
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| Vietnamese apparel firms have been busy so far this year to complete orders, toward achieving the goal of earning about 47 billion USD from export this year. |
Vietnamese apparel firms have been busy so far this year to complete orders, toward achieving the goal of earning about 47 billion USD from export this year on the back of incentives brought about by free trade agreements that already took effect.
Businesses also plan to invest in modern technology to improve business efficiency and workers’ income this year.
The global apparel demand is forecast to decrease by nearly 5% annually this year to around 700 billion USD, resulting in a decrease of 25-27% in the number of orders.
Major importers of Vietnamese apparel such as the US, China and the Republic of Korea have shown signs of smaller demand since October 2022. Meanwhile, the European Union and Japan still maintained positive growth but it was lower than previous months.
Chairman of the Vietnam Textile and Apparel Association (VITAS) Vu Duc Giang said in order to achieve sustainable development, the sector will continue calling for investment to the material supply chain; building sale solutions; and developing automation, digital governance, a transparent business environment and hi-quality workforce.
He admitted that the sector is facing intense competition from Bangladesh, India and Indonesia, especially products with simple designs.
In the near future, about 30-35% of apparel makers will suffer from the shortage of orders while the remainder will face price pressure. However, the sector is still able to produce mid and hi-end products which is one of its advantages to accelerate export, he said.
Domestic textile firms also suggested the State adjust policies and mechanisms flexibly, especially those related to credit and foreign exchange rate to improve their competitiveness.
(Source: VNA)
