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Release entry restrictions! Vietnam's textile industry recovers strongly

Release time:

2023-01-11

Southeast Asia has liberalized entry restrictions
Some container freight rates have increased by more than 50%

Recently, municipal departments in Yangon, Mandalay and other places have successively issued statements inviting domestic people to go todesionated places to solash water and revel. since Apri. Vienam. Malavsia. Singapore. the philippines. Cambodia and indonesia have also"elaxed entry restrictions in order to restore tourism.

t can be predicted that with the improvement of consumption expectations. the order demand of Southeast Asian countries wil "retaliaterebound, and the export transportation market in Southeast Asia will be more hot. In fact, the market reacton is always faster than al kinds ofudaments. The most direct manifestation is that after Vietnam opened its entrvy in mid March, after half a month of demand brewina. the freichirates of some container routes from North China to Ho Chi Minh have increased by more than 50%: Prices in South China and the Philippinesalso showed an upward trend; Thai shipping space is also very tight.

Vietnam's textile industry recovers strongly
Some enterprise orders have been scheduled to the third quarter

According to the latest report of the Us agricultural counsellor, Vietnam's textile and garment industry recovered strongy in 2021, with exportsreaching Us $39 bilion, a year-on-year increase of about 15%, and cotton yarn exports reaching Us $3.3 bilion, a year-on-year increase of34%, driving the increase of cotton imports. Vietnam imported 7.8 milion bales of coton (about 1.709 milion tons) in 2021 1 22, a vear-on-vearincrease of 7%.

According to the analysis of the report, the strong recovery of Vietnam's textile and garment exports is due to the increase of clothing demancin the EU market and China's cotton yam import demand on the one hand, and the rapid vaccination of domestic vaccines on the other hand.These two factors have played a key role in the recovery of the textle and garment industry. However, the ncrease of sea freight, the shortageof containers and the market shock caused by the confict between Russia and Ukraine may also limit the crowth of Vietnam's textile andgarment industry. At the beginning of 222, the industry set an export target of Us S43 bilion in 2022, with a vear-on-vear increase of 10%. Thespecific situation will be adjusted according to the changes of the epidemic situation.

According to the statistics of Vietnam's General Administration of statistics, Vietnam's exports of goods reached Us S53.79 bilion in the firstwo months of 2022. an increase of 10.2% over the same period in 2021. A otal of 9 catecories of commodities exported exceeded us shiion accountna for 71 6% of the toal exnorts Amonc them shrimn products increased sianifcantl, n anuary. the exnort volume of thiroduct reached us S313 milion. an increase of 43% over the same period in 2021. t is understood that manv ocal textle enterprises haveeven placed orders until the third quarter of this year

After the gradual unsealing of Southeast Asia, the domestic textile leader also began to force the Southeast Asian market again. On theevening of March 30, Lutai textile disclosed that Vientiane textile. a wholy-owned subsiciary, planned a total investment of about 210 milion usdollars in Xining Province, Vietnam, for the construction of production bases for woven and knited fabric products. After the implementation ofthe investment, the achievable production capacity is about 60 milion meters of high-grade woven fabrics per year, One belt, one road, is tounderstand that the investment is based on the strategic development and extemal investment of the company. t is necessary to efectivelyntearate the advantaces of domestic and foreian resources. effectivelv avoid the impact of potentia trade barriers. maximize the interests otthe group, and decide to further invest in the area along the belt.

It is not dificult for us to foresee that for a long time to come, it is inevitable that the price of textle and clothing wil rise steadily -the textle andclothing manufacturing industry will have to adopt overseas investment to absorb the pressure of rising costs.

However, in the supply chain of textle and clothing manufacturing. "Made in China" stll ranks first in the worid: However, the manufacturinoindustry in Southeast Asia also has an absolute advantage. Today, with the slowdown of global demand and the popularity of fast fashiondiscount retallers, the "sweatshop" behind fashion is dificult to disappear. At the same time, we have to face the reality that the textile industrof the rising Southeast Asian countries is becoming the main compettor of Chinese textile enterprises. Under the foreian trade situation ofosing price advantace, domestic textile enterprises are also facing difficult chalenges.