Vietnam's textile-RMG sector plans to raise export revenue by 5.6% YoY

Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association (VITAS), attributed the $2-billion shortfall to market fluctuations and international policy shifts.

Escalating US-China trade tensions, higher tariffs on many textile and garment products, and the complicated geopolitical situation have directly affected global orders and consumer demand.

With controlled consumer spending, businesses have been forced to accept smaller orders, shorter delivery schedules and tighter production timelines. As a result, profit margins have been significantly squeezed.

Companies have had to manage fragmented orders, adjust production plans and raise investment to meet green standards and traceability requirements to retain international clients, Giang was cited as saying by a domestic media outlet.

Cao Huu Hieu, general director of the Vietnam National Textile and Garment Group (Vinatex), pointed out that the industry’s biggest challenge remains its heavy reliance on imported inputs.

The cent per cent dependence on imported cotton and 90-95 per cent dependence on imported fibres, along with dyes and chemicals, leaves the sector exposed if the United States raises tariffs on products with a high proportion of third-country origin material.

VITAS said the Middle East and Africa are emerging as new markets as traditional destinations face increasing uncertainty.

Several Vietnamese companies in the sector are expanding reach overseas. Close to 30 enterprises now operate in Indonesia, Myanmar, Bangladesh, Egypt, Africa and Latin America, forming multinational production networks to enhance competitiveness and resilience.

Giang said the multi-site production model helps companies spread political and trade risks, optimise labour and logistics costs, and strengthen credibility with international buyers.

Labour costs in many countries are significantly lower than in Vietnam while preferential trade arrangements there offer additional tariff advantages.

ALCHEMPro News Desk (DS)