Vietnam textile exports to hit all-time high of $22 billion

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Vietnam textile exports to hit all-time high of $22 billion

In the first six months of 2022, Vietnam's exports of textiles and apparel products are expected to hit a new all-time high of $22 billion, according to a report from the chairman of the Vietnam Textile Apparel Association.

Exports increased thanks to Vietnam's numerous free trade agreements, including with the European Union, although procurement of certain materials slowed due to the long coronaviruses lockdowns in Shanghai, China.

Vietnam is the second largest clothing exporter after China. The growth of exports was contributed to by the country's membership in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership.

The reports quoted Vu Duc Giang, the chairman of the association, as saying that the international trade agreements have pushed up the growth of Vietnam's textile industry over the past five years.

With the spread of COVID 19 infections slowing, demand for clothing in the U.S. and Europe, the main export markets for Vietnamese manufacturers, continues to pick up.

Industry officials said that many manufacturers have secured inventories and minimized the adverse effects of reduced procurement on production despite the fact that China's anti-infection policy has stagnated.

Exports of thread used to make clothing are expected to be worth $3 billion in the January-June period, compared to $5.6 billion in 2021.

The rising prices for resources accompanied by Russia's invasion of Ukraine are a problem for Vietnamese textile and apparel makers, with Giang linking these factors to increased production costs. The orders from the U.S. and Europe will be affected in the third and fourth quarters of 2022, the company said.

The trade war between the U.S. and China has made Vietnam a key destination for manufacturers moving away from China. Producing in Vietnam can avoid the cost increases due to the additional U.S. tariffs on clothing items shipped from China.