Textile, garment is an industry involved in the production of yarn, dyeing, fabric, product design, finishing and distribution of garment products to consumers. The textile and garment industry contributes to ensuring consumer demand, which is necessary for most occupations and activities in people's lives and activities; is an industry that brings an export surplus to the economy; contribute to job creation and increase social welfare. In addition, the textile industry also promotes development and is an input for many other economic sectors such as agriculture, supporting industries, etc.
The textile and garment industry in recent years has made positive progress, the average growth rate of the textile industry's industrial production index in the period 2012-2020 reached 11.8%/year (years with high growth rate). The high growth rate of over 10% is: in 2013 it increased by 21%; in 2014 it increased by 19.7%; in 2015 it increased by 14%; in 2016 it increased by 16.9%; in 2018 it increased by 12.5% and in 2019 it increased by 10.9% ). Some garment brands are confirmed in domestic and foreign markets such as: Garment 10, Viet Tien Garment, Dong Xuan Knitting, Thai Tuan brocade, An Phuoc shirt... These brands are not only standing firmly in the market. domestic market, but also helps Vietnam's textile and garment industry establish a name in foreign markets. In 2020, the textile, footwear, handbag, and apparel manufacturing industries are the industries that are most negatively affected and prolonged by the Covid-19 epidemic. Textile industry IIP decreased by 0.5%; Apparel manufacturing industry decreased by 4.9% due to the Covid-19 pandemic disrupting the supply of raw materials, narrowing the consumption market for garment products, the demand for textile products dropped sharply as consumers across the world The world is only interested in essential supplies and epidemic prevention. Although the epidemic increases the demand for protective products and medical masks (both domestic and foreign), the textile and garment industry needs to find a way to survive and develop in accordance with the new context.
In June and the first 6 months of 2021, the textile and garment industry had more signs of improvement compared to the same period last year thanks to the recovery of the production chain with the increase in traditional orders. Major economies around the world deployed vaccines to prevent the Covid-19 epidemic, and gradually reopened to restore their economies. Some of Vietnam's main export markets gradually recovered and made good use of opportunities from the signed and implemented Free Trade Agreements (FTAs). In particular, the US, EU, Japan and Korean markets have many positive signs when many textile and garment enterprises now have export orders until the third quarter of 2021. The shopping demand of consumers in the US and Europe for clothing items increased sharply when the economy recovered due to the gradual lifting of the blockade order.
The textile industry production index in June increased by 3.8% over the previous month and by 14.3% over the same period in 2020; the apparel manufacturing industry increased by 3.4% and 7.9%, respectively. Generally in the first 6 months, the textile production index increased by 8.6% over the same period last year; apparel manufacturing industry increased by 8.9%.
Some products in the industry in the first 6 months of this year achieved good growth such as textiles made from natural fibers estimated at 331.2 million m2, up 10.3% over the same period last year; production of woven fabrics from synthetic and man-made fibers reached 603.3 million m2, an increase of 11.7%; casual wear reached 2,294.4 million pieces, up 10.1%.
Product production increased, the consumption index of some products of the textile and garment industry was quite good compared to the same period last year, showing that the demand for the textile industry is restored. The consumption index of the textile industry in the first 6 months of 2021 increased by 2.2% over the same period last year; apparel manufacturing industry increased by 9.6%.
Export turnover of textile and garment products in the first 6 months of this year is estimated to increase sharply compared to the same period last year because Vietnam's import markets have reopened to restore the economy. In which, textile and garment products reached USD 15.23 billion, up 14.9%; textile and garment materials; fibers, textile yarns of all kinds reached 2,611 million USD, up 62.2%.
The global textile and garment market is tending to recover because of economic support packages and positive information on the deployment of a vaccine against Covid-19; demand for commodities in general and garment in particular has recovered somewhat. The shift of orders from competitive countries, especially from Myanmar, has helped Vietnam receive a sudden amount of orders right from the first quarter of 2021. In addition, in 2021, textile enterprises will not face the problem of broken raw materials. Because 63% of the value of textile materials is imported from China[1], when the epidemic broke out in early 2020, the supply chain was affected, making it difficult for businesses to meet orders. Abundant orders, combined with advantages in the export market, have helped Vietnam's textile and garment gradually recover with export turnover growing month by month, and at the same time, it proves that Vietnamese textile enterprises have adapted to the new environment. new business conditions. In particular, enterprises continue to invest in equipment and automation technology, which is also one of the factors contributing to creating the foundation for the textile industry to withstand market pressures in terms of quality and delivery conditions. fast.
Currently, a number of textile and garment enterprises say that their textile and garment factories have closed orders until August 2021. The status of orders has improved markedly compared to the same time last year when customers stopped placing orders. new order and old order canceled/delayed delivery. Update textile orders of some major textile and garment corporations in our country as follows[2]:
– Vietnam Textile and Garment Group (VGT): Value of closed orders until the end of August 2021.
– TNG Investment and Trading Joint Stock Company (TNG): The order value is 190 million USD and by the end of August 2021.
– Thanh Cong Textile – Investment – Trade Joint Stock Company (TCM): Value of closed orders until August 2021.
– Binh Thanh Import and Export Production and Trading Joint Stock Company (GIL): Order value is expected to increase 13% by the end of August 2021.
In 2021, with the expectation that life will return to normal, people's shopping needs after a year of repression will grow again. This helps fashion brands become more optimistic about their business prospects, thereby positively affecting traditional garment orders at garment factories in Vietnam. However, in order to improve production and business results, enterprises must adjust, follow market demand and move faster with market fluctuations to seize opportunities. In fact, over the past time, businesses have been more interested in building domestic fabric supply to take advantage of the EU-Vietnam Free Trade Agreement (EVFTA), the Comprehensive and Progressive Agreement for The Trans-Pacific Partnership (CPTPP) and the UK-Vietnam Free Trade Agreement (UKVFTA)... In which, many businesses have exploited the advantages of domestic production to export to Europe, enjoying the advantages under the EVFTA. . According to businesses, the opportunity to increase exports to Europe has created a catalyst for manufacturers of raw materials to boldly invest in factories, prepare and supply more "made in Vietnam" raw materials. .
[1] According to Vietnam Textile and Garment Group.
[2] According to the report of textile and garment industry in 2021 of BCS Securities Company on April 7, 2021.
