Vietnamese garment companies including Saigon 3 and Garco 10 have reported significant year-on-year increases in exports during the first quarter. This has led to key garment players expressing confidence in their order books and ability to sustain operations well into the third quarter.

The rise in revenues is a result of recovery of demand from the US, says a spokesperson from Saigon 3. Similarly, noting a 15 per cent Y-o-Y rise in the company’s revenue, Than Duc Viet, CEO, Garco 10, outlines ambitious targets for the year to further boost the company’s revenues and profit. 

After a challenging 2023 marked by declining exports, particularly in major markets like the US and EU, the outlook for 2024 for these companies appears promising. Their exports during the first quarter showed a significant uptick, bringing them closer to the annual export target of $44 billion.

Despite this optimism, the industry still remains concerned about geopolitical tensions and their potential impact on shipping costs. Additionally, pressure from global fashion brands to adhere to sustainability standards and embrace digital transformation poses challenges for Vietnamese garment businesses.

Vu Duc Giang, Chairman, Vietnam Garment and Apparel Association, has urged businesses to adopt green transformation initiatives and invest in technology to maintain competitiveness and meet evolving global supply chain requirements. He particularly raised concerns about the potential decline in exports from the country to the EU due to stringent emissions standards set by initiatives like the European Green Deal.