VGG attributed the decline to the negative impact of the COVID-19 pandemic around the world, especially in Japan, the US and the EU, the main export market of the corporation. Importers in these countries reduced their orders, leading to a decrease in VGG’s sales.
The ministry said in January 2021, the textile production index and the apparel production index increased by 16.6 per cent and 9.9 per cent, respectively, over the same period in 2020. The production of fabrics was estimated at 92.4 million sq.m, up 20.4 per cent.
Vietnam's textile and garment industry have made great progress and managed to take advantage of free trade agreements (FTAs) such as Vietnam - Korea FTA, Vietnam-Eurasian Economic Union FTA (Vietnam - EAEU FTA), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and European-Vietnam FTA (EVFTA), according to a report released by the Ministry of Industry and Trade.
The Vietnamese manufacturing sector ended the year 2020 in growth territory as business conditions improved following disruptions caused by a succession of storms in November, with output, new orders and employment all increasing in December, according to a report released by IHS Markit on January 4, 2021.
The Vietnam Textile and Apparel Association (VITAS) and the Vietnam Leather, Footwear and Handbag Association (LEFASO) have written to the prime minister asking for help due to a high risk of duties being imposed on Vietnamese textiles and footwear imported into the United States.
According to the Ministry of Industry and Trade, the country exported textiles and garments worth US$25.6 billion in the January-September period, down 12% over the same period last year, news site Vietnamplus reported.
Prime Minister Nguyễn Xuân Phúc requested garment-textile and footwear sectors promote the building of Vietnamese brands and supply chain linkages during a working session with the sectors’ representatives in Hà Nội on Monday.