Regent Garment Factory Limited, Regina Miracle International (Vietnam) Co., Ltd, and Gain Lucky (Viet Nam) Limited were Vietnam’s top 3 textile and garment exporters in 2021, with export turnover of 671.899, 589.303, and 563.792 thousand USD, respectively.
In 2021, despite being heavily affected by the COVID-19 pandemic, Vietnam’s textile and garment exports still maintained their growth momentum, with an estimated turnover of 39 billion USD, up 11.2% compared to 2020.
According to estimates, the total revenue of the fourth quarter of 2021 of Vietnam’s listed textile companies increased by 24.1% over the same period, thanks to the recovery from the textile companies in the South. After the lockdown period, most southern companies ran at 85% - 90% capacity in the fourth quarter of 2021, compared to 50-60% capacity in the third quarter.
As a result, the industry's net profit increased by 57.0% year-on-year in the fourth quarter of 2021 and 82.0% higher than the third quarter of 2021.
In 2021, the total revenue of listed textile companies increased slightly by 7.6% year-on-year, while net profit in 2021 increased by 57.4% year-on-year and 6.0% higher than the same period in 2019.
Based on 2021 exports, Vietnam’s textile and garment exports in 2022 are predicted to increase by about 10% compared to 2021.
Three main factors will support Vietnam’s textile and garment exports in 2022:
The textile and garment market in 2022 is expected to prosper, however, the total demand is not expected to increase much, while the countries that compete with Vietnam's textile and garment are all trying to increase their export market share.
In particular, China approved the 14th five-year plan dedicated to the textile and garment industry and set the target to maintain and expand market share in the segments with the highest added value; towards technological innovation and achieving sustainable development goals. That creates pressure on Vietnam's textile and garment industry in 2022. In addition, transportation costs are high, and the pressure that comes from the shortage of containers has not shown any signs of cooling down.
In January 2022, according to statistics of the General Department of Customs, Vietnam's textile and garment exports reached 3.57 billion USD, down 1.2% over December 2021 but up 34.4% compared to January 2021.
In 2021, the structure of Vietnam's textile and garment export market mainly belongs to markets such as the US, CPTPP, EU, Korea, and China, accounting for 87.6% of the total export turnover of textiles and garments. However, the proportion of Vietnam's textile and garment exports to the US market increased from 46.9% in 2020 to 49.1% in 2021. On the contrary, the proportion of Vietnam's textile and garment exports to other markets other main schools decreased.
In January 2022, Vietnam's textile and garment exports to major markets increased compared to January 2021. In particular, exports to the largest market, the US, in 2022 increased by 42.0% over January 2021. Exports to the countries participating in the CPTPP increased by 19.7%. Exports to Korea up by 33.4%, and to EU by 40.9%, etc.
Source: The Ministry of Industry and Trade, Statista
Compiled by VietnamCredit