SUDDEN FALL OF THE TEXTILE AND GARMENT INDUSTRY OF VIETNAM

BRIEF HISTORY OF THE GARMENT INDUSTRY

The population of Vietnam is mostly of a friendly and fun-loving nature. They are hardworking and punctual in the activities they are associated with. Coming to the textile and garment market of the nation, we get to know that Vietnam had a deep and strong connection with the clothing industry for many years. Until 1958, Vietnam was doing pretty well in the traditional style of clothes but after 1958, the nation entered into the modern clothing industry after the French built various factories and warehouses in Vietnam.

Due to a great tussle between Vietnam and France, the textile industry came to a halt which restarted in the year 1975 at its full pace. In the year 2007, Vietnam made its entry into the WTO and since then the country’s textile and clothing industry is on the boom and growing at a rapid pace. As mentioned in the Vietnam Export Data as well, garments became one of the favorite items for Vietnam to export to the world.

In recent years, Vietnam is one of the leading nations in the world that exports garments the most. This industry has given employment to almost 3 million people in Vietnam which makes it the biggest industry in the nation and the largest contributor to the country’s economic growth.

WHAT DO THE CURRENT STATISTICS HAVE TO SAY ABOUT THE VIETNAM’S TEXTILE INDUSTRY?

The total earning for Vietnam due to the exports of garments and textiles to the world accounted for USD 2.25 billion in the month of January 2023. This value is lower by almost 37.5% as compared to January 2022. This insight is taken from Vietnam Export Data and the ministry of finance of the nation.

The major textile exports from Vietnam as mentioned in Vietnam Trade Data went to the United States worth USD 0.99 billion which alone is 44% of total exports. After the US, Japan and South Korea were the nations who imported textiles from Vietnam the most worth USD 0.248 billion and USD 0.244 billion.

Another domain of textile, that is yarn is also showing a decline in exports. As of January 2023, the exports of yarn reduced by 52.5% amounting to USD 0.225 billion. The major players who imported yarn in huge quantities from Vietnam were China (USD 0.086 billion – 38.22% of the total) and India (USD 5 million). Enough data as to how much textile or yarn was imported to Vietnam as per Vietnam Import Data is not available.

On checking the data and insights of the year 2022, it is clear that the country registered a growth of 14.7% in the textile industry, followed by a growth of 10% in 2021, but in January 2023, it seems that the market is declining.

OUR LAST VERDICT

After studying all the reports, the current situation tells that the garment market of Vietnam is declining but it is too early to state whether it is really declining or not as we just compared the statistics of the first month. We are going to keep a check on this market for now so as to state our final conclusion as there are possibilities that in coming months the exports of this market increases and make new records.

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