Data from the General Department of Customs showed that Vietnam’s textile and garment exports in September 2022 reached 2.72 billion USD, down 31.9% over August 2022, and up 18.7% over September 2021.
In the first 9 months of 2022, Vietnam’s textile and garments export turnover was 29.014 billion USD, up 23.8% over the same period in 2021.
In the first 9 months of 2022, Vietnam mostly exported textiles and garments to the US. Exports to this market accounted for 47.8% of the total export turnover. In second place were the CPTPP members, accounting for 16.3%. In third place was the EU, accounting for 11.4%. The US is both Vietnam's largest textile and garment export market and one of the markets with large export growth rates in the first nine months of 2022, up 19.4% over the same period in 2021.
In addition, exports of textiles and garments to several markets experienced strong growth in the first nine months of 2022. For example, the UK increased by 47.5%, India by 52.9%, UAE by 45.4%, Turkey by 125.6%, etc.
Textile and garment exports are showing many positive prospects, depicted through a sharp increase in export turnover of 23.8% in the first 9 months of 2022.
Despite high growth in business results in the first 9 months of 2022, in September, unfavorable market conditions occurred directly affecting most textile enterprises. Therefore, production and business in the coming time are forecasted to be very difficult.
Some textile and garment enterprises have announced their business results for the third quarter of 2022 and the first 9 months of this year have shown positive results. TNG Investment and Trading Joint Stock Company is a notable name with sales revenue in the third quarter of 2,017 billion VND and 129.5 billion VND in pre-tax profit, up 18% and 24.7%, respectively, over the same period in 2021. In the first 9 months of 2022, TNG Investment and Trading Joint Stock Company made a profit before tax of 284.1 billion VND, up 39.7%.
As for the Vietnam Textile and Garment Group (Vinatex), after the first 9 months of 2022, the group's consolidated revenue is estimated at 14,000 billion VND, and the consolidated profit before tax is estimated at 1,150 billion VND, up 25% over the same period in 2021.
Vinatex’s total garment export turnover in the first 9 months of 2022 reached 1,401 million USD, up 27% over the same period in 2021. However, from August, the number of textile and garment orders decreased due to global demand decreased, especially in the US and EU markets - the main markets of Vietnam's textile and garment, in addition to the progress of the supply of raw materials slowing down under the impact of China's zero Covid policy, logistics crisis, labor fluctuations, etc.
The garment export market is forecasted to be quiet until the end of the fourth quarter of 2022 and last until 2023. It is expected that in the fourth quarter of 2022, the revenue of Vietnam’s textile and garment industry will slow down, only equal to 20% of the expected export turnover. Therefore, production and business activities in the fourth quarter will face many difficulties.
The prospect of Vietnam’s textile industry in the coming time is assessed by SSI Securities Joint Stock Company as difficult. Regarding orders, this unit believes that textile companies will face difficulties from the fourth quarter of 2022 to the first six months of 2023 due to concerns about inflation and high inventories of customers. Orders are expected to improve by the end of the second or third quarter of 2023 if inflation eases. The impact will be more severe for businesses with customers mainly in the US and EU than those with large customers in Japan and Korea.
(First 9 months 2022)
Gain Lucky (Viet Nam) Limited, Regent Garment Factory Limited, and Worldon (Viet Nam) Company Limited were Vietnam’s top 3 textile and garment exporters in the first 9 months of 2022. They exported 484,636 thousand USD, 454,988 thousand USD, and 453,426 thousand USD of textile and garment products, respectively.
Source: The Ministry of Industry and Trade
Compiled by VietnamCredit