Vietnam’s textile and apparel exports hit a new high in the first half of the year
International Business News – The Vietnam Textile and Apparel Association issued a forecast that from January to June 2022, the export value of textile and apparel will increase by 23% over the same period of the previous year, reaching 22 billion dollars, a record high. Although the purchase of some raw materials was blocked due to the previous closure and control measures in Shanghai, but the entry into force of the Free Trade Agreement (FTA) signed with the European Union (EU) pushed up the export value.
Several local media in Vietnam reported the news. Vietnam’s apparel exports are second only to China, ranking second in the world. Yarn exports are also on the rise, with exports totalling $5.6 billion in 2021, while it is expected to reach about $3 billion in January-June 2022.
In addition to the FTA that came into effect in 2020, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which came into effect in 2019, is said to have contributed to the increase in Vietnam’s exports. Vu Duc Giang, chairman of the Vietnam Textile and Apparel Association, said that “these agreements have boosted the growth of Vietnam’s domestic textile industry in the past five years.”
The current issue is that Russia’s attack on Ukraine has led to rising resource prices. Wu Dejiang believes that this will lead to increased clothing manufacturing costs.