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According to the General Statistics Office Textile industry: In Q1/2022, Vietnam’s yarn production as well as fiber and yarn exports decreased significantly. Specifically, the total yarn production in Vietnam in the first quarter of 2022 decreased by 3.2% compared to the same period in 2021. In which, the production of natural fibers decreased by 0.1% and the production of artificial fibers decreased by 5.0% over the same period. Fiber and yarn exports also showed signs of slowing down after a strong growth in 2021, export volume decreased by 9.0% in Q1/2022. However, because yarn prices remained high, export turnover still increased by 18.9% over the same period.

Besides, the textile dyeing industry also faced many challenges in Q1/2022. Specifically, production output in Vietnam in the first quarter of 2022 decreased by 4.1% compared to the same period in 2021 and only met about 25% of the total demands of the domestic market.

It can be seen that, up to the present time, the production activities of the Vietnamese fabric industry are still facing many difficulties. According to VIRAC, fabric production in Vietnam is still weak due to 3 main reasons. Firstly, the investment capital for each project is large, especially the technology and wastewater treatment systems are quite expensive, making the capital recovery time prolonged, leading to difficulties for medium and large enterprises. Small when wanting to invest in the industry. Secondly, the use of many chemicals in the printing and dyeing system can cause serious environmental pollution, so many localities have carefully considered or refused textile dyeing projects. Finally, domestic fabrics are mainly produced according to foreign designs, which makes fabric products in Vietnam lack creativity and reduce attractiveness to customers.

Forecast of textile and garment industry Q2/2022

The business results of the textile and garment industry in Q1/2022 have shown positive signs of recovery of the textile and garment industry after the 4th wave of the Covid epidemic. Accordingly, Vietnamese textile and garment industry in Q2/2022 is forecasted to have many prospects. Potential, especially for the garment industry. Besides the above growth drivers, Vietnam’s textile and garment industry will also face difficulties in terms of rising production costs. It is expected that the price of input materials for the textile industry such as cotton, fiber, yarn, and fabric will continue to increase; and logistics costs such as container prices and transportation costs have not shown any sign of decreasing. The increase in production costs will cause difficulties for businesses, especially when many businesses face financial difficulties.

Positive Recovery Potential

In 2022, textile and garment production has a stable positive outlook thanks to the recovery of the labor market. With the government’s “speedy” vaccination policy, workers can return to work with peace of mind thanks to the high vaccination rate. Not only that, the policies to increase the welfare of enterprises and the policy to support employees of the State also contribute to bringing the production activities of the textile and garment industry back to normal.

The gross domestic product (GDP) in the last quarter of 2019 is estimated to increase by x.xx% over the same period last year The VND / USD exchange rate in 2019 continued a slight upward trend but remained relatively stable thanks to the SBV’s application of flexible management policies through the central exchange rate and intervention in the market by selling USD to stabilizing market sentiment. By the end of December 2019, the central exchange rate was VND xx,xxx / USD, higher than xx,xxx VND in the same period of 2018 and VND xx,xxx at the end of 2017...