Vietnam's Textile & Garment Exports Rise 6.3% to $20.2 Billion in Jan-July 2024

From January to July 2024, Vietnam's textile and apparel exports increased by 6.3% to $20.274 billion. Additionally, yarn exports rose by 6.8% in volume and 3.5% in value. China was the biggest market for yarn, whereas the US was the greatest for textiles. Imports of fabric and cotton also increased. The VITAS export goal for 2024 has been lowered to $44 billion. In recent years, Vietnam's textile and garment industry has experienced significant growth, with exports rising 6.3% to $20.2 billion in the first seven months of 2024. This surge in exports is a testament to the importance of the textile and garment industry to Vietnam's economy, as well as the country's position as a key player in the global apparel market. In this article, we will Explore the key trends and reasons behind Vietnam’s textile exports growth in January-July 2024. 

Key Highlights of Vietnam’s Textile Export Sector

• Vietnam's textile exports showed a decline of $4 billion in value in 2023 as compared to the year before.
• Textile exports from Vietnam accounted for $16.52 billion in the 2024 first half. 
• Vietnam’s textile export industry has a GDP share of 16%.
• Vietnam is the 3rd largest textile exporter globally.
• There was a 6.9% decline in the value of fabric exports.
• There was an 8.9% decline in the value of textile exports.
• At $40.3 billion, the export value of Vietnam’s textiles and apparel fell by 9.2% in 2023, compared to the previous year. 
• With over $11 billion in exports, the United States accounted for most Vietnamese textile exports.
• Primary export goods: With an estimated export value of $4.39 billion, jackets were Vietnam's principal garment export. Shirts, undergarments, and pants were among the other top apparel exports.
• Vietnam's silk exports to India came to $110 million in 2023.

Importance of the Textile and Garment Industry to Vietnam's Economy

The textile and garment industry performs a vital feature in Vietnam's monetary landscape, contributing appreciably to the nation's GDP and employing thousands of human beings. Vietnam is one of the globe’s biggest textile and garment exporters, with the top essential markets including the U.S., Europe, and Asia. The enterprise's boom has been driven by an aggregate of factors, such as multiplied international calls for and strategic trade agreements.

Historical Performance and Growth Trends

Vietnam's textile and garment industry has an extended record of achievement, with a consistent upward thrust in exports during the last decade. The industry has benefited from the nation's competitive hard work costs, favorable trade partnerships, and professional body of workers. In recent years, Vietnam has emerged as a key participant in the international apparel and textile market, with recognition for textile products and properly timed transport.

Key Drivers Behind the 6.3% Growth in Vietnam’s Textile Exports

1. Increased Global Demand

One of the important thing drivers in the back of the 6.3% rise in Vietnam's textile and garment exports is the expanded global demand or call. Rising consumer demand in essential markets together with the U.S., Europe, and Asia has driven up global orders for Vietnamese textiles and clothes. Additionally, the post-pandemic restoration has caused a surge in orders as international locations look to restock their inventories and meet pent-up consumer demand.

2. Diversification of Export Markets

Another aspect contributing to Vietnam's export growth is the diversification of export markets. In recent years, Vietnam has made a concerted effort to increase its attainment past traditional markets together with the US and the European Union. The nation has efficiently tapped into rising markets in Asia, Africa, and the Middle East, forging new trade partnerships and establishing money making possibilities for its textile and garment exports.

3. Strategic Investments in Technology and Innovation

Vietnam's textile and garment enterprise has additionally benefited from strategic investments in generation and innovation. The nation's manufacturers have embraced automation, digitalization, and sustainable practices to enhance efficiency, productivity, and quality in their textile production processes.

4. Strategic Trade Agreements

Another aspect contributing to the industry's increase is the presence of key trade agreements together with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the European Union–Vietnam Free Trade Agreement (EVFTA). These agreements have supplied Vietnam with tariff discounts and expanded its market entry, making its textiles and garments extra competitive within the international market. As a result, Vietnam has been able to grow its textile marketplace percentage and attract new customers.

Vietnam's Textile Export Destinations: Where does Vietnam Export Textile?

With around $11 billion of the complete export cost in 2023, the United States accounted for the maximum number of Vietnamese textile exports. In 2023, the top 10 export locations for Vietnamese textiles and clothing merchandise are:

1. USA: $11 billion
2. Japan: $3 billion
3. EU: $2.9 billion
4. South Korea: $2.43 billion
5. Canada: $850 million
6. China: $830 million
7. Cambodia: $610 million
8. United Kingdom: $500 million
9. Australia: $350 million
10. $Malaysia: $264 million

Vietnam's Textile Exports in 2024: Latest Updates

The General Department of Vietnam Customs issued information showing that in the first half of 2024, Vietnam's exports of clothes and textiles to international markets extended by 5.04% to reach $16.52 billion. Which noticed a leap of 1.63% to about $1.91 billion, or 11.54% of the complete turnover came from exports to the EU. Vietnamese textile and apparel exports to the EU noticed a modest growth inside the first half of 2024, with a turnover of greater than $1.9 billion in the course of the period beneath assessment.

Additionally, the country's textile exports to the Netherlands noticed the largest rebound in 2024, totaling over $565.29 million, up by 19.97% year over year and accounting for 29.65% of all export sales to the EU. In addition, the nation's export profits to the Czech Republic delivered around $14.52 million, a sizable increase of 48.98%. In the meantime, shipments to Luxembourg and Slovakia surged by 24.76% and 55.32%, respectively, accomplishing $2.39 million and over $ 1.74 million.

Vietnam’s Textile and Garment exports in the last 10 years

Future of Vietnam's Textile and Garment Industry

Looking into the coming years, the future of Vietnam's fabric and apparel industry appears vivid. With continued investment in generation, infrastructure, and workforce education, Vietnam is well-positioned to hold its fierce facet in the international textile market. The industry's sturdy overall performance in recent years is a testament to Vietnam's ability to evolve to changing marketplace situations and capitalize on new opportunities. Most of the Vietnam Textile and Apparel Group's clothing companies at the moment are pursuing orders for early 2025 and feature sufficient orders for the next 12 months. Clothes and textiles rank among the top industries in Vietnam for export turnover, with export earnings of over $16 billion in the first half of 2024. The majority of groups signed export orders by the end of this 12 months’ fourth quarter or even into the first half of 2025.

Conclusion

To conclude, Vietnam's textile and garment enterprise remains a prime driving force of economic growth and a key player in the global apparel market. The enterprise's latest 6.3% growth in exports is a positive signal of its resilience and competitiveness, as well as its ability to leverage trade agreements and multiply global demand. As Vietnam appears to the future, the textile and garment industry will surely play a critical function in the nation's financial system ahead.

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