Textile and garment sector targets USD 48 billion export revenues for 2023. Illustrative photo
According to the Vietnam Textile and Apparel Association (VITAS), the target is feasible as their export revenue this year is likely to reach nearly USD 44.50 billion, up 10 percent from 2021.
"Despite difficulties posed by rising inflation in some key markets including the US and EU, our export revenues this year increased by 10 percent compared to 2021," VITAS said. "With this growth rate, we ranked third after China and Bangladesh in textile and garment exports."
"These results underlined the great efforts made by local firms as orders sharply fell this year, especially during the final months," VITAS noted. "The US was still the biggest importer of Vietnamese textile and garment products this year with revenues of over USD 18 billion, South Korea with USD 4.20 billion, and Japan and China with nearly USD 4 billion each.
VITAS President Vu Duc Giang said that their export revenues may reach between USD 47-48 billion in 2023 in an optimistic scenario and USD 45-46 billion in a less favourable scenario.
"In terms of a positive scenario, if instabilities in the global market are brought under control, all activities of the sector may recover by the end of the first quarter and we could achieve USD 48 billion in export revenues," Giang said.
But a more likely scenario, in which the global market recovers in the latter half of 2023, export turnover may reach USD 45 billion, he predicted.
"Although we're having fewer orders for 2023 due to global inflation and an economic downturn, we'll take some measures to maintain our export revenue growth, such as using locally-produced materials, switching to producing lower-value items, and diversifying markets. Local businesses can also take benefits from some trade agreements including the CPTPP and EVFTA."
The Vietnam National Textile and Garment Group (Vinatex) estimated its 2022 consolidated revenue at over VND 19.53 trillion (USD 814.13 million), up 15 percent from last year and 8 percent higher than the target, and consolidated profits of more than VND 1 trillion, up 14.6 percent from the target.
Vinatex said that these figures were very encouraging amid numerous market difficulties posed by the Russia - Ukraine conflict and surges in oil prices, inflation, and interest rates.
Vinatex President Le Tien Truong predicted that if the global economy would be more stable and geopolitical conflicts end by mid-year, then exports next year could increase by 4-5 percent from 2022.
In the middle-case scenario, in which instabilities linger on, inflation remains, and interest rates increase until the third quarter of next year, then exports may remain unchanged. While in the worst case, where the world economy enters a recession, 2023’s revenue may be about 5 percent lower than this year.