Textile, garment exports to EU face new challenges
New pressure
Textiles and garments are key Vietnamese export products with impressive growth. Since late 2022, however, this sector has faced numerous challenges due to a decrease in importer demand, especially from the EU market.
At a recent Vietnam-EU Trade Forum jointly held by the Ministry of Industry and Trade and the Ho Chi Minh City People’s Committee in the framework of Vietnam International Sourcing 2023, a series of events aimed at connecting international supply chains, Vu Duc Giang, President of the Vietnam Textile and Apparel Association (VITAS), said that in 2023, Vietnamese textile and garment exporters face a lot of difficulties due to inflation and political instability leading to a decline in consumer spending in countries which are Vietnam’s major export markets, including the EU.
Textile and garment production is required to meet new criteria |
According to Vu Duc Giang, in the first seven months of 2023, Vietnam exported US$2.3 billion worth of textiles and garments to the EU, down 9.6 percent compared with the same period last year. Exports dropped more strongly and reached merely US$330 million in August, a year-on-year decrease of 17 percent, and are forecast to keep plunging in September. Notably, orders from major brands such as Decathlon, Nike, and Adidas all decreased in the first eight months.
Explaining the decline in orders, Vu Duc Giang said that apart from inflation and political instability leading to a decline in consumer spending, Vietnamese textile and garment companies are also facing “green” requirements.
Specifically, the EU-Vietnam Free Trade Agreement (EVFTA)’s commitments on green consumption and recycling require domestic manufacturers to meet new criteria in production.
Dang Quoc Thang, Woven Process Director at Decathlon Vietnam, forecast that the situation will remain difficult throughout 2024. However, he believes difficulties will urge businesses to change and find new ways to go.
Green products attract orders
During the past two years, major brands in the world have required textile and garment suppliers to apply new criteria to production. Dang Quoc Thang said that Decathlon’s policy is refusing to buy products of factories using coal in production. Therefore, to join Decathlon’s supply chain, businesses should set a clear roadmap to phase out fossil fuels and stop using them after 2025. “We want to seek reliable manufacturers with high self-sufficiency. When choosing suppliers, Decathlon will prioritize companies which are responsible to their employees, the community and the environment, offer competitive prices and ensure quick delivery and product quality,” Thang said.
Decathlon’s requirements are also the demand of other brands in the world. Therefore, VITAS warned Vietnamese textile and garment exporters to the EU that apart from competitive prices, stable quality and quick delivery, they should pay greater attention to “green” factors to attract orders.
According to VITAS, Tan De Sportswear Manufacturing Joint Stock Company, Viet Tien Garment Corporation, and Garment 10 Corporation have invested in production according to the requirements of foreign brand owners. Notably, Tan De Sportswear Manufacturing Joint Stock Company’s factory in Thai Binh Province has transformed production to meet global green standards. However, most Vietnamese textile and garment companies are small to medium in size and green transformation is a challenge for them.
Vu Duc Giang said that VITAS will continue connecting domestic companies with foreign brand owners and the Government; coordinate with reputable international organizations to develop programs in the fields of labor, green energy, recycling, digital transformation, brand building, human resource management; organize trade promotion delegations, and create opportunities for domestic companies to learn from others’ experience and seek customers.
“We also encourage domestic companies to invest in infrastructure to create a safe, green and clean environment for production as required by foreign brand owners,” Vu Duc Giang emphasized.
See also
VN seafood exports up 6% in first four months
07:00 | 20/05/2024 Major exports
Aquatic product exports enjoy 6% growth in four months
07:00 | 16/05/2024 Major exports
Việt Nam coffee exports to Singapore scant, room to grow enormous
08:00 | 12/05/2024 Major exports
Vietnam's durian exports to China boom in Q1
06:00 | 11/05/2024 Major exports
Timber and wood product exports grow
09:06 | 08/05/2024 Major exports
Vietnam leads in export rice prices globally
14:16 | 06/05/2024 Major exports
See more news
Vietnam targets 2 billion USD in cassava export by 2030
06:00 | 06/05/2024 Major exports
Vietnamese pomelo to be exported to Australia
08:52 | 04/05/2024 Major exports
Việt Nam earns $1.43b from rice exports in Q1
09:26 | 19/04/2024 Major exports
Efforts to have IUU yellow card removed
06:00 | 10/04/2024 Major exports
Agro-forestry-fishery exports likely to hit 54-55 billion USD
06:00 | 05/04/2024 Major exports
Seafood exports rise to $2 billion in Q1
09:15 | 03/04/2024 Major exports
Tuna exports predicted to rebound as billion-USD earner
10:22 | 29/03/2024 Major exports
Forestry exports up 47% in Jan-Feb
06:00 | 12/03/2024 Major exports
Phone, component exports hit 5.5 billion USD in January
06:00 | 08/03/2024 Major exports
VN's seafood exports can reach $9.5 billion in 2024
09:20 | 07/03/2024 Major exports
Branding essential for leverage of FTA opportunities
17:14 | 20/05/2024 Vietnamese Brands
MoIT seeks to address material bottleneck
16:50 | 20/05/2024 Support industries
Hà Nội calls for investments in six urban areas projects
10:00 | 20/05/2024 Economy
Vietnam, France look to boost economic partnership
09:40 | 20/05/2024 Vietnam and EU
Central bank to inspect gold trading activities
09:17 | 20/05/2024 Finance-Banking
Multimedia
Royal antiques presented at metaverse exhibition
11:15 | 18/05/2024 Lifestyle
Việt Nam plans to preserve ethnic minorities’ intangible cultures at risk of disappearing
06:00 | 15/05/2024 Lifestyle
The Hải Phòng Red Flamboyant Festival celebrated the city's special UNESCO status
16:49 | 13/05/2024 Lifestyle
HCM City: top spot in Việt Nam for slow travel lovers
09:00 | 13/05/2024 Tourism
The Anam Cam Ranh named among Vietnam’s best family hotels
06:00 | 11/05/2024 Vietnamese Brands
Tax, land rent payment deadlines to be extended this year
06:00 | 19/05/2024 Policy
Ministry proposes tax filing deadline extension for 2024
06:00 | 17/05/2024 Policy
Viet Nam targets to have 2 million enterprises by 2030
07:00 | 15/05/2024 Policy
Law on Telecommunications hoped to promote development of new telecoms services
06:00 | 13/05/2024 Policy
MoIT seeks to address material bottleneck
16:50 | 20/05/2024 Support industries
Vietnamese steel affirms position in world market
07:00 | 20/05/2024 Industry
Concerted efforts to reduce manufacturing inventory
06:00 | 20/05/2024 Industry
Energy giants plan for national power plan
06:00 | 18/05/2024 Energy
Delegation from EU, Netherlands explore investment opportunities in Thai Nguyen
07:10 | 18/05/2024 FDI
Desk established in Dong Nai to support Japanese investors
09:02 | 16/05/2024 Investment
Vietnam should not miss opportunities to attract FDI
08:00 | 14/05/2024 FDI
New wave of Chinese investment
06:00 | 12/05/2024 FDI
Central bank to inspect gold trading activities
09:17 | 20/05/2024 Finance-Banking
Banks raise interest rates to attract depositors
16:47 | 17/05/2024 Finance-Banking
Credit access obstacles lifted for collective economic entities
06:00 | 16/05/2024 Finance-Banking
Government urged to narrow domestic, global gold price gap
08:36 | 15/05/2024 Finance-Banking
First provincial biodiversity museum launched in Quảng Nam
06:00 | 19/05/2024 Environment
Enhancing informal sector’s role in EPR implementation
06:00 | 18/05/2024 Environment
Centre opened to serve environmental data integration, monitoring network operation
06:00 | 16/05/2024 Environment
Capacity building for policy makers, large emitters on ETS and carbon market
08:48 | 15/05/2024 Environment
Semiconductor investment prioritized
06:29 | 17/05/2024 Science - Technology
Science-technology - foundation for nation’s development PM
06:00 | 16/05/2024 Science - Technology
Full cyber stream ahead Bắc Giang focuses on digital society development
06:00 | 11/05/2024 Science - Technology
35 localities piloting four-wheel EVs for tourists, despite no official legal regulations
07:00 | 09/05/2024 Science - Technology
Government tightens vessel control to fight IUU fishing
07:00 | 20/05/2024 Society
HCM City to complete 183km of metro routes by 2035
06:00 | 17/05/2024 Society
Railway sector gets creative to attract passengers
07:00 | 15/05/2024 Society
Việt Nam’s largest high-speed ship service from HCM City to Côn Đảo launched
07:00 | 14/05/2024 Society
Branding essential for leverage of FTA opportunities
17:14 | 20/05/2024 Vietnamese Brands
Vietnamese agricultural products to take part in Foodservice Australia 2024
15:08 | 17/05/2024 Vietnamese Brands
PV GAS launches Month of Workers
10:22 | 16/05/2024 Companies
National Brand Program promotes prestigious Vietnam
13:09 | 15/05/2024 Vietnamese Brands
Royal antiques presented at metaverse exhibition
11:15 | 18/05/2024 Lifestyle
Việt Nam plans to preserve ethnic minorities’ intangible cultures at risk of disappearing
06:00 | 15/05/2024 Lifestyle
The Hải Phòng Red Flamboyant Festival celebrated the city's special UNESCO status
16:49 | 13/05/2024 Lifestyle
Nguyễn Dynasty Urns in Huế make it to the UNESCO Memory of the World List
07:00 | 11/05/2024 Lifestyle
Tourism sector goes green for sustainable development
08:22 | 19/05/2024 Tourism
Sustainability plays significant role in choices of travellers
13:00 | 18/05/2024 Tourism
Vietnamese tourism information centre opened in India
08:00 | 18/05/2024 Tourism
Mysterious 'floating' lake discovered in Quảng Bình
16:54 | 13/05/2024 Tourism