Red Sea tensions are poised to impact Vietnamese exporters of garments, textiles, footwear, and leather goods from the second quarter of 2024, causing disruptions in logistic costs and shipping times.
The Vietnam Leather, Footwear, and Handbag Association (Lefaso) and the Vietnam Textile and Apparel Association (VITAS) Vice President and General Secretary, Truong Van Cam, highlight the need for vigilance among domestic enterprises, closely monitoring the situation to navigate and negotiate new export agreements.
Tran Thanh Hai, Deputy Director of the Agency of Foreign Trade under the Ministry of Industry and Trade, highlights the consequences, revealing that the logistics costs for containers traveling through Europe may increase by US $ 1,000 to US $ 2,000 due to Red Sea tensions.
Following the garment sector’s pandemic resilience in 2020 and 2021 through mask and quarantine clothes manufacturing, 2023 witnessed a downturn. Global inflation, particularly in the US and Europe, led to a nearly 10 per cent decline in Vietnam’s exports to US $ 40.3 billion.
