At a conference to discuss production and business directions in 2024, Mr. Cao Huu Hieu, General Director of Vietnam Textile and Garment Group (Vinatex) said that difficulties with Vietnam's textile and garment industry could last until 2024 when there still exist unfavorable factors including world economic recession, widespread geopolitical crisis, changing consumer behavior, and price competition from rival countries.
Therefore, businesses must be cautious when building production and business plans for 2024, and at the same time seek opportunities from the US market, improve productivity, and develop new products.
Mr. Le Tien Truong, Chairman of Vinatex, said that total demand for textiles and garments in 2024 is expected to improve compared to 2023, but still 5-7% lower than in 2022.
Chairman of Vinatex asked units to develop a plan for 2024 with the garment industry growing in revenue by 3-5%, profit reaching about 85-100% compared to 2023. The construction fiber industry should be projected to increase by 10% compared to 2023 due to the increased equipment mobilization rate based on the forecast cotton price of 2.5 - 2.6 USD/kg.
Statistics from the General Department of Customs show that textile, garment and fiber exports in September reached 2.9 billion USD, down 3.5% compared to September 2022. The decrease is gradually narrowing compared to previous months. Exports to the US and China markets increased by 2% and 11% respectively over the same period.
In the first 9 months of 2023, textile, garment and fiber exports reached 28.3 billion USD, down 13.5% compared to the same period in 2022.
Mr. Cao Huu Hieu said that by the end of the first 9 months of 2023, Vinatex is expected to reach 71% of annual revenue and 40% of yearly plan profit.
The market trend in the fourth quarter may have positive changes when the US Federal Reserve (Fed) did not raise interest rates in September but delayed it to the end of the year.
Vietnam's textile export market is recovering well. Accordingly, the purchasing managers index (PMI) of the US and China are both above 50 points, while EU inflation in September has dropped to 4.3%.
General Director of Vinatex said that in the fourth quarter, customers will increase the exchange of orders with garment enterprises. As for the fiber industry, the price of cotton put into production in the third and fourth quarters has approached the market price and is lower than the first 6 months of the year, benefiting the fiber industry.
Source: Vinatex, vietnambiz
Compiled by VietnamCredit
