The easing of social distancing measures in a number of key export markets is set to create more opportunities for the Vietnamese textile and garment industry during the second half of the year.

According to the Ministry of Industry and Trade (MoIT), garments and textiles were one of the industries heaviest hit by the negative effects of the novel coronavirus (COVID-19) pandemic during the first half of the year. Indeed, increases in textile production stood at less than 3%, equal to a third of the figure from the same period last year, whilst apparel production was hit by a drop of nearly 5% compared to the corresponding period last year.

During the reviewed period, textile and garment production, along with exports, faced plenty of difficulties due to a shortage of raw materials, suffering sharp falls in export orders as a result of postponements, cancellations, delays in delivery, and payments. 

As a result of these challenges the textile and apparel industry lost up to 50% of orders during May with product prices dropping by 20%.

Moreover, worldwide demand for apparel and fashion products also witnessed a significant drop, especially in the United States and EU nations. These factors have caused plenty of businesses in the industry to encounter hurdles such as reduced income and job losses.

Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association, says “The Vietnamese textile and garment industry is under intense pressure from the COVID-19 pandemic, with a series of factories strictly controlled without receiving any more traditional orders. Once the global pandemic had spread, supply shortages became more serious. Textile enterprises have come up with solutions aimed at retaining workers amid the increasingly complicated developments of the pandemic globally.”

Facing the negative effects of the epidemic, the MoIT says that domestic textile enterprises have been able to change many of their production processes and traditional products to show their adaptability and resilience in the face of the recent downturn.

As a result of the flexibility of the local industry, there are positive signs ahead. The opening up of major export markets, such as the US, the Republic of Korea, Japan, and the EU, coupled with growing consumer demand and shopping due to a relaxing of social distancing policies, therefore presents an opportunity for the Vietnamese textile and garment industry to grow in the second half of the year.