06:08 | 29/08/2020 Industry
(VEN) - Severely affected by the Covid-19 pandemic, textile and garment exports in 2020 are likely to decrease 30-40 percent compared to last year. Manufacturers in this sector are being advised to shift some development to the domestic market and increase product diversification if they are to maintain growth and create jobs.
|Many textile and garment enterprises are transforming production|
Plummeting export market
Le Tien Truong, General Director of the Vietnam National Textile and Garment Group (VINATEX), said that in the first half of this year, textile and garment enterprises maintained trade levels and greatly increased exports of medical masks and personal protective equipment (PPE).
However, the PPE demand is expected to shrink to its normal level from September 2020 on due to massive production of these products that has created a glut.
“In the first six months of 2020, textile and garment production in Vietnam was maintained, while that in China and Bangladesh was halted due to social distancing. This has led to an expanding market share for Vietnamese textiles and garments in the US and the EU. However, the competition in maintaining and expanding the market share will be tougher in the coming time,” Truong said.
The declining exports, drop in prices, payment delays and cash flow pressure are expected to challenge enterprises in the sector.
Truong said the demand for basic products will still be high, and enterprises should accept flexible production plans to earn revenue, create jobs and satisfy domestic demand although it accounts for only 10 percent of the industry’s production capacity.
Nguyen Van Mieng, General Director of the Nam Dinh Textile and Garment Joint Stock Company, said the company has transformed its operations, expanding its market to northern provinces, targeting new products, taking advantage of dyed fabrics, and improving the fabric-knitting-dyeing chain connectivity.
Many other textile and garment enterprises have been transforming production and product structures to maintain growth and await new opportunities.
|According to the Ministry of Industry and Trade, textile and garment export value is expected to increase in the last months of the year due to the high demand for products for Christmas and the Solar and Lunar New Year holidays. The EU-Vietnam Free Trade Agreement (EVFTA) is expected to help textile and garment exports flourish.|