Vietnam’s textile and garment export turnover reached $31.3 billion in the first eight months of 2022, up 16.4 per cent year-on-year. However, according to SSI Research, the picture in the fourth quarter is not too bright, because the number of orders will be 25-50 per cent lower than in the second quarter, equivalent to a 15-20 per cent fall in revenue year-on-year. At the same time, the sales outlook is also bleak, as the USD/VND exchange rate is forecast to continue to decline in the second half of the year.

At the “Traceability of textile materials before the impact of the new geopolitical situation” workshop organized recently by the Vietnam Textile and Apparel Association (VITAS) and Cotton Council International (CCI) in Ho Chi Minh City, analysts said textile and garment enterprises are under great pressure from regulations on the traceability of raw materials in many stages of the industry supply chain.

In addition to fear of the pandemic disrupting supply chains, rising logistics costs, a serious shortage of containers, congestion at many seaports, and labor shortages are also obstacles directly affecting textile enterprises. If no early solutions are adopted, businesses will be at risk of seeing orders cancelled and operations ceased.