Vietnam's textile-garment sector expects better performance in Q4 2023

Almost all businesses under the Vietnam National Textile and Garment Group (Vinatex) have fewer orders this year compared to the past, but there are signs of customers increasing orders.

The price of cotton put into production in the third and fourth quarters this year is now approaching the market price and is lower than the first six months of the year, helping the fibre industry turn more effective in production and business.

In the last part of this year, the fibre industry lacks signs of improvement, while businesses face multiple challenges, including higher prices of fibre production, electricity, raw material and higher interest rates, a domestic news outlet reported.

Excessive raw material inventory and a high price of input material put a lot of pressure on the yarn production businesses.

Vinatex feel textile and garment the enterprises will face prolonged difficulties in production and business activities due to the decline in the growth of the main textile import markets.

They also have to face an increase in input costs, including an increase of 3 per cent in energy and electricity prices from May, and a 3 per cent increase in exchange rates since the end of the second quarter, not to talk of fierce price competition from rivals.

ALCHEMPro News Desk (DS)