Vietnam seemed to be on stagnant mode in its apparel production due to the COVID-19 wave that hit the country during August-October period in 2021, and the export data in this period wasn’t very much encouraging for the manufacturing fraternity of the country.
However, despite headwinds, the apparel and textile exports of Vietnam fetched US $ 39 billion in 2021.
Now, VNDirect Securities releases its forecasts and says the textile and garment export turnover in 2022 might reach US $ 43 billion, up 10 per cent compared to 2021.
The positive forecast is attributed to the increased consumption demand of the EU and US. At the same time, the investment advice company believes Vietnam’s cotton yarn manufacturers can seize the opportunity when the US President Joe Biden has signed a law banning the import of cotton materials produced in Xinjiang (China).
According to VNDirect Securities, the global GDP is forecast to reach 4.90 per cent in 2022 and world textile and garment demand in 2022 will return to 2019 levels, reaching about US $ 740 billion.
It’s worth noting here that, as per USA and EU custom data, the demand for textiles and garments continued to recover quickly after COVID-19.
Currently, Vietnam’s large textile and garment enterprises such as Garment 10, Thanh Cong, and Century Yarn all, reportedly, have orders until the second and third quarters of 2022.
VNDirectSecuritiesexpects Vietnamese cotton yarn manufacturers to be able to win the ‘piece of cake’ left behind by Xinjiang producers. And Century Yarn is expected to be one of the biggest beneficiaries in the context of the increasing demand for environment-friendly materials.
