Insufficient Orders For Vietnamese Textile And Garment Exports

According to the Vietnam cotton yarn Association, Vietnam's national textile and Garment Group (Vinatex) said that the market demand will resume from the three quarter of this year. It is estimated that the export of textile and clothing in 2020 will be 20% lower than that in 2019.

Demand will resume from the third quarter.

According to Vinatex, textiles and clothing are not important, such as food, medicine, human protective devices, but also belong to the product category with basic needs. Therefore, after the epidemic is over, the textile industry will be one of the commodities that can be recovered very quickly. Basic and cheap products will first recover and occupy a major sales proportion in the third and fourth quarters of 2020.

The ability to restore advanced products depends on the process of creating new jobs in the European Union and the United States. If the recovery is good, the recovery of high-end products will be possible in 2020. Demand will begin to recover from the third quarter of 2020. Starting from basic products and low prices, enterprises with better status in the supply chain will have orders first.

Exports fell by 20%

For Vietnam's textile and garment exports, Vinatex believes that market demand is unlikely to return to pre popular levels. In the short term, if the epidemic situation is controlled and the demand for medical products no longer exists, the textile and garment industry will continue to have insufficient orders. Exports are expected to fall by 20% over 2019.

Vinatex said the group's policy is to continue to produce masks and medical protective clothing in the second quarter to make use of the current demand for foreign markets that are still very high. Most importantly, when the market is showing signs of recovery, the entire Vinatex system must maintain its normal operational readiness to maintain high production.

In the first four months of this year, Vietnam's textile and clothing exports were only 10 billion 630 million US dollars, down 6.6% from the same period in 2019. The value of imports was only $6 billion 390 million, down 8.76% from the same period in 2019.