Last year witnessed Vietnamese textile and garment exports grow by minus 10.5% due to the impact of the COVID-19 pandemic, just raking in US$35 billion, in contrast to regional peers who endured a decline of between 15% and 20%.
This is the first major setback the sector has suffered after 25 years of penetrating the global market says Truong, adding though the global market is showing signs of recovery, the number of orders and prices remain modest.
The executive reveals several local enterprises, including Vinatex, have received orders up until the end of April or even July and August for some commodities such as knitwear and other popular items.
The sector is poised to fully recover from the COVID-19 crisis in the third quarter of 2022 at the earliest possible time, says the CEO.
Truong speaks of disadvantages that the garment sector addresses during the COVID-19 pandemic time, noting garment firms are unlikely to fulfil signed contracts and more importantly the sector’s position in the global supply chain is also threatened.
Experiencing three coronavirus waves, the Vinatex representative therefore advises businesses to strictly take drastic COVID-19 prevention measures at work, with workers from epidemic hit areas being subject to a 21-day quarantine period.
During the course of the year ahead the domestic textile and garment sector is forecast to achieve an export turnover of approximately US$39 billion.
To meet the target, local firms will strive to expand into fresh markets while the implementation of various free trade agreements (FTAs) is anticipated to create a wealth of opportunities which will serve to boost exports.
The Vinatex leader also says as a means of taking full advantage of the tariff reduction and benefits from recently-signed FTAs, local firms are required to prove their origin of production, either in Vietnam or in intra-bloc countries. This is in line with the rule of yarn and fabric set out within both the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA).