The drop in orders and prices is anticipated to continue until the first or second quarter of 2023. The association has projected that Vietnam’s garments sector will maintain its growth in 2023; exports are expected to go up to $48 billion in a favourable market and reach at least $45 billion in a less favourable market, local media reports quoted VITAS as saying in a note.

Vietnam’s garment exports are expected to rise by 9 per cent in 2022 to touch $43 billion even as garment and textile manufacturers face a decrease in orders in the second half of 2022. Rising inflation and weakening global consumption will not prevent exports from increasing by $2–4 billion from 2021, as per the Vietnam Textile and Apparel Association.

VITAS has also advised its members to not commit to deals offering large discounts against a backdrop of a shortage of orders. Vietnam’s top garments and textiles importer is the US with imports worth $18 billion. Asian countries like South Korea ($4.2 billion) and Japan and China ($4 billion) take the second and third spots as importers, respectively.

Fibre2Fashion News Desk (NB)