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In the first 6 months of 2022, the leather and footwear industry has exceeded the set plan, growing by 14% and according to the latest data in 7 months, the growth is 13%, reaching over 14 billion USD. This growth is a steady increase in key markets such as the North American market with 24% growth; EU market increased by 17.5%...
However, up to now, sharing about the difficulties of the textile, garment and footwear industry, Ms. Phan Thi Thanh Xuan - Vice President, General Secretary of the Vietnam Leather, Footwear and Handbag Association said that the market The EU and the US are declining in consumer demand. These are the main export markets of Vietnamese leather and footwear, so it will certainly affect purchasing power in the last months of the year.
“In addition, leather and footwear inventory is quite large, currently the inventory due to supply chain disruption affects the goods consumption inventory, causing the year-end order to slow down somewhat. Especially, the orders from now to the first quarter of 2023 of leather and footwear businesses have almost declined," said Ms. Phan Thi Thanh Xuan.
Similarly, the textile industry - one of the key export industries of Vietnam also faces many difficulties. Mr. Vuong Duc Anh - Chief of Office of the Board of Directors of Vietnam National Textile and Garment Group said that the Group also had a general assessment for the last 6 months of the year. "We can see risks, inflation and world tensions that will affect consumer demand," said Mr. Vuong Duc Anh.
A representative of the Vietnam Textile and Garment Group said that for the garment industry, difficulties arise when demand in the last 6 months of the year may decline when overbought conditions in markets still exist. For example, in March, the European Commission approved a strategy for sustainable development and circular textiles of the EU. Producers are responsible for their products along the value chain, even when they become waste. This is also a difficulty and challenge for the textile industry when the requirements are legislated.
The textile and garment industry faces many challenges in the second half of 2022.
Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (Vitas), said that the Vietnamese textile and garment industry still faces many immediate risks and challenges when the risk of re-emergence caused by COVID-19 strains new is still available. Many markets that are important trade partners of Vietnam such as China, Japan, Taiwan (China)... are still applying strict anti-epidemic measures, significantly affecting the supply chain of raw materials and accessories. materials and consumption of textile products of Vietnam.
In addition, high inflation in major textile and garment consuming markets of Vietnam such as the US, EU... and complicated developments of the Russia-Ukraine conflict caused the prices of raw materials and fuels to rise continuously from the beginning of the year until the end of the year. now. Specifically, cotton prices increased by 19.1%; crude oil price increased by 40%; domestic gasoline price increased by 67%; transportation costs are 3 times higher than the average of the past 5 years… making the cost of enterprises increase by about 20-25%.
“It must also be added that the disadvantage of exchange rates with competitors, the labor shortage after the pandemic, the requirement to trace the origin of cotton, fabric, yarn or the greening of textiles from trade agreements. The new generation of free trade agreements (FTAs) are also challenges that Vietnamese textile and garment enterprises are facing," said Mr. Vu Duc Giang.
Diversify export markets, take advantage of FTA
In order to save the decline in orders, experts said that manufacturing enterprises should not focus on a few markets, but need to diversify markets from supply to export markets.
According to Mr. Le Hoang Tai, Deputy Director of the Trade Promotion Department (Ministry of Industry and Trade), businesses need to well exploit opportunities from the Free Trade Agreements (FTAs) that Vietnam has signed to enjoy preferential treatment. on tariffs, in order to increase the competitiveness of products.
Mr. Le Hoang Tai emphasized that many countries are currently implementing economic stimulus packages, stimulating consumption demand, thereby increasing the demand for imported goods. Therefore, in the coming time, Vietnam's exports to markets with free trade agreements are forecasted to be positive. make workers and help Vietnam participate more deeply in the global supply chain”, said a representative of the Trade Promotion Agency.
From the business perspective, Ms. Phan Thi Thanh Xuan - Vice President, General Secretary of the Vietnam Leather, Footwear and Handbag Association suggested, manufacturing enterprises should not focus on a few markets but need to diversify markets. markets from supply to export markets.
According to Ms. Phan Thi Thanh Xuan, it is necessary to have a strategy for human resource development. The leather and footwear industry can only produce new quality product lines at the average level of the world, if the quality of human resources, skills and skills of the workforce is improved, it will bring value. higher for the product.
“We also need to focus on developing the flow of raw materials towards sustainable development, such as a green and clean environment to keep up with the world's trends, while ensuring stability for the manufacturing industry and increasing the Association to approach the supply chain in a sustainable way", suggested a representative of the Vietnam Leather, Footwear and Handbag Association.
Mr. Vuong Duc Anh - Chief of Office of the Board of Directors of Vietnam National Textile and Garment Group said that for export activities in general and textile exports in particular, there is Decision No. 493/QD-TTg dated April 19. 2022 on the Commodity Import-Export Strategy to 2030, that strategy has not yet specified the goals that the textile and footwear industries need to aim for in the near future.
“We want to have a strategy in the period of 2025 to 2030 for the textile and garment and footwear industry according to the Government's orientation so that these two industries develop in which direction, where they develop, and where the Vietnamese textile and garment industry develops. How to maintain the sustainability of exports", the representative of the Vietnam National Textile and Garment Group suggested.
Article, photo: Thu Trang/Newspapers
