Vietnam'S Textile And Clothing Export May Reach 39 Billion US Dollars In 2021

Vietnam's "investment online" reported on December 29 that Vietnam's textile and clothing exports will show a 10.5% negative growth for the first time in 25 years in 2020. The export volume is only 35 billion US dollars, which is 4 billion US dollars less than the 39 billion US dollars in 2019. However, under the background that the total trade volume of the textile and clothing industry in the world has dropped from 740 billion US dollars to 600 billion US dollars, the overall decline rate is 22%. The decline rate of all competitors is generally 15-20%. Even some of the decline rate is as high as 30% due to the isolation policy, and the decline rate of Vietnam's textile and clothing export is not large.

In 2020, Vietnam ranks among the top 5 textile and garment exporting countries in the world due to no isolation and production suspension. This is also the most important reason for Vietnam's textile and garment exports to maintain the top 5 in the situation of clothing export decline.

According to mckenzy report published on December 4, 2020, the profits of global textile and garment industry will shrink by 93% in 2020, more than 10 well-known clothing brands and supply chains in the United States will go bankrupt, and about 200000 people will be unemployed in the clothing supply chain of the country.

At the same time, because production was not interrupted, Vietnam's textile and clothing market share continued to grow, reaching the level of 20% of the U.S. market share for the first time, and occupied the first position in many months.

With the entry into force of 13 free trade agreements including evfta, although not enough to cover the decline gap, they also play an important role in the reduction of orders.

It is predicted that the textile and garment market will recover to the level of 2019 as soon as the second quarter of 2022 and at the latest in the fourth quarter of 2023. Therefore, it is still a difficult and uncertain year to be trapped in the epidemic situation in 2021. Many new features of the supply chain have emerged, forcing textile and garment enterprises to adapt passively.

First of all, the trend of price reduction has filled the market, and simple goods have replaced fashion, which has led to overcapacity on the one hand, and lack of new capacity on the other hand, online sales are becoming more and more prosperous, and intermediate links are reduced.

In view of these market characteristics, Vietnam's textile and clothing industry's highest target in 2021 is to export 39 billion US dollars, which is 9 months to 2 years faster than the general market. Compared with the high target, the general target is to export US $38 billion, because the textile and clothing industry still needs the support of the government in stabilizing the macro-economy, monetary policy and interest rates.