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Vietnam’s garment, textile exports surge by 23.5% from Jan-May’22


Vietnam’s garment and textile exports surged by 23.5 per cent Y-o-Y to $18.7 billion between January and May this year as market uncertainties continued and input costs continued to rise. The revenues of Vietnam National Textile and Garment Group (Vinatex) surged by 50-per cent.

Similarly, revenues of Nam Dinh Textile Garment JSC (Natexco) surged by 23 per cent Y-o-Y to 1.02 trillion VND by May end, according to trade union president Doan Van Dung.Natexco suffered severe labor shortage throughout February and March as there were times when up to half of its workers had to take sick leave due to COVID-19 infection.

Viet Thang Corporation has been struggling to keep production going during the first quarter of the year, given that the Russia-Ukraine crisis has caused supply chain disruptions and a four-fold spike in input and fuel prices and logistics costs, says Dau Phi Quyet, Deputy Director General.

Though the company has managed to find stable supplies of inputs, it is having a shortage of imported replacements for equipment components to deal with. It earlier took six to eight weeks to receive deliveries of the replacements, which normally come from Europe. Now the shipments may take up to 12 weeks to arrive. To cut logistics costs, the corporation is prioritizing major orders instead of minor ones.

Similar challenges could potentially put the brake on Vinatex’s growth over the remaining months this year, a report by a Vietnamese news agency said.

A record inflation in decades is ravaging major economies, triggering rising inventories and declining purchasing power, having substantial effects on the company’s performance, adds Cao HuuHieu, CEO, Vinatex. He advises domestic manufacturers to prepare themselves with more flexible plans in order to promptly address any market changes.


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