In contrast to last year’s struggles, textile and footwear enterprises in Vietnam are experiencing a rise in export orders, with many booked through the end of this year and even into the first quarter of 2025.
BạchHồng Long, Deputy General Director, No. 10 Garment Corporation, reveals, currently in the process of completing the orders received for 2024, his company has full orders until Feb’25, and is also negotiating new orders for Q1, FY25, with approximately 70 per cent of these already finalised. According to him, this is expected to boost the company’s revenue by 10-20 per cent in 2024 compared to the previous year. A shift in sourcing from other countries willhelp improve orders for 2025, he adds.
Similarly, with its order books full through 2024, Dony Garment Company is also negotiating for new orders through March 2025. PhạmVănViệt, General Director, ViệtThắng Jean Company, notes,his company has received transferred orders from countries like Bangladesh at lower prices. However, high-quality orders for European markets have not increased, as those markets are still in recovery.
TrươngVănCẩm, Deputy Chairman, Vietnam Textile and Apparel Association, explains, the current rise in orders can be attributed to a shift in sourcing from other countries to Vietnam, rather than an increase in global market demand. After the decline in US Federal Reserve interest rates in September and inflation rates in the US and EU, consumer spending for Vietnam’s textile exports in these key markets has picked up, he adds.
Cẩm further notes, external factors like natural disasters, political instability, and policy issues in other garment-exporting nations are also helping Vietnamese companies gain new orders. The peak year-end shopping season, driven by festivals and consumer discounts, is expected to further boost demand with lower freight costs helping garment exporters save on expenses.
As per Vietnam Textile and Apparel Association (VITAS), export turnover of the textile industryincreased by 9 per cent Y-o-Y to surpass $32.5 billion in the first nine months of 2024. With a rise in demand during Christmas and Lunar New Year, the sector is set to achieve its $44 billion export target for 2024.
A similar recovery is seen in the footwear industry, with exports reaching $20 billion in the past nine months. If the 10 per cent growth rate continues, the sector is projected to hit $27 billion in exports by the end of 2024. PhanThịThanhXuân, Deputy Chairman,Vietnam Leather, Footwear and Handbag Association, highlights, many footwear enterprises already have orders through the first quarter of 2025, and the industry is on track to meet its target.
