The economic downturn and high inflation in many major export markets are causing difficulties for Vietnam’s textile exporters.

The prospect of orders for Vietnam’s textile and garment sector for the fourth quarter of 2022 and the first six months of 2023 are not bright because many major export partners are facing high inflation and high unsold inventories.The number of orders placed in the fourth quarter of 2022 fell 25 per cent to 50 per cent from the second quarter of 2022. So it has become extremely difficult for enterprises to plan business for 2023.

They have to closely monitor the world economic situation, especially the major export markets of the textile and garment sector. The number of orders in November and December decreased by 30 per cent compared to the average number of the third quarter of 2022, even though difficulties are forecasted to last into next year.

Additionally, processing orders are also squeezed in price by about 15 per cent while input costs continue to increase.Inflationary pressures in many major economies are hampering recovery. Tightening monetary policies in many major economies have reduced the demand for goods, impacting the production and export of many countries, including Vietnam.