Vietnam’s garment, textile, and leather footwear exports earned around $71 billion in 2022 despite several challenges such as a global economic recession and high inflation, as per the Vietnam Textile and Apparel Association (VITAS). The garments and textiles sector and the leather footwear and handbag market totalled $44 billion and $27 billion in earnings, respectively.
Even as consumption demand and export orders dipped, the textiles, garments, and leather footwear sectors were able to sustain double-digit growth, VITAS noted. The nation’s textiles and garments industries are aiming for an export target between $46–$47 billion and the leather and footwear industry is set towards reaching $27–$28 billion.
“The garments and textiles sector achieved robust growth in the fourth quarter of 2021, as well as during the initial eight months of 2022. However, export orders recorded a significant drop in the fourth quarter of 2022, thereby leading to several businesses being forced to lay off their workers,” Le Tien Truong, chairman of the Vietnam National Garment and Textile Group (Vinatex), was quoted as saying by local media reports.
Truong also noted that high inflation in most of the major Vietnamese markets such as the US and the European Union (EU) will impact sectors including garments, textiles, and footwear.
The drop in the number of orders has led to the prediction that Vietnam’s textiles, garments, and footwear industry will remain stagnant until the end of the first quarter of 2023.