In January 2021, the textile production index and the apparel production index increased by 16.6 percent and 9.9 percent compared to the same period in 2020, respectively, according to the Ministry of Industry and Trade.
 

The production of textiles from synthetic fibers and artificial fibers was estimated at 92.4 million square meters, increased by 20.4 percent year-on-year. Casual clothing was estimated at 380.1 million pieces, up 9.3 percent year-on-year. The total export turnover of textiles and garments in January 2021 was estimated at USD 2.6 billion, increased by 3.3 percent over the same period last year.

 

The trend of price reduction and simple clothing will replace fashionable clothing, causing the available production capacity to become redundant and new production capacity requirements to arise. However, in 2021, the goal of the textile and garment industry is still equal to that of 2020, with the highest export reaching USD 39 billion.

 

Mr. Le Tien Truong, Chairman of the Board of Directors of Vietnam National Textile and Garment Group (Vinatex), assessed that textile and garment enterprises have received the attention of the Government over the past time. However, up to now, the global COVID-19 pandemic situation is still complicated. The negative impact of the pandemic can even last for one or two years. The year 2021 was forecasted to still be full of difficulties and uncertainties for the textile and garment market.

 

On the positive side, the Ministry of Industry and Trade believes that the textile and garment industry is facing a huge opportunity for development because of recently-signed free trade agreements, especially the potential to expand exports to major markets around the world.

 

In particular, the Regional Comprehensive Economic Partnership (RCEP) signed in mid-November 2020 was expected to create motivation and opportunities for Vietnam’s garment and textile industry and replace some markets where the COVID-19 pandemic has not been controlled yet.

 

In the coming time, the textile and garment industry needs to promote building Vietnamese brands and supply chains linking and develop supporting industries.

 

Source: vietnamcredit.com.vn