Exports from the garment industry recover
The first quarter saw exports up 10–15% year over year for many clothing companies, and they received enough orders to go until the third quarter.
According to a representative for the Saigon 3 company, clothing exports have increased and the order book is filled until July.
"Demand from the U.S. has recovered, and so the company's first quarter revenues were up from the same period in 2023."
Garco 10 CEO Than Duc Viet reported that his company's sales increased 15% year over year and that it had enough orders to go until the end of the third quarter.
According to him, it is growing its clientele this year and aims to make VND 4.5 trillion (US$180.3 million) in sales, which is 6.6% more than 2023, and VND 130 billion in profits, which is a 5.7% rise.
Thanh Cong, a significant textile manufacturer, wants to increase its profits by 20%.
The Vietnam Garment and Apparel Association's head, Vu Duc Giang, stated that the apparel sector has improved and that the higher order quantities will aid businesses in recovering from a difficult 2023.
Lower demand in important areas including the US and the EU caused exports to drop by more than 9% to $40.3 billion last year.
However, according to customs figures, they increased 9.62% to $9.53 billion in the first quarter of this year. According to Giang, the $44 billion export goal for this year is easily attainable at the current rate.
However, clothing companies fear that geopolitical disputes may hinder the recovery.
Since their profits have been severely impacted by the increased shipping expenses brought on by the Red Sea tensions, many are pessimistic.
Additionally, they face pressure to satisfy the strict demands of international fashion companies in the areas of sustainability, extended producer responsibility, digital transformation, and corporate, social, and environmental governance.
Giang concurred, stating that the European Green Deal's stricter emissions regulations may result in a drop in clothing exports to the EU. To be competitive and satisfy the expectations of global supply chains, Vietnamese companies must proactively embrace green transformation, make changes to their manufacturing methods, and invest in new technology, he continued.
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