Vietnam’s textile industry plans to deal with the pandemic situation, another country joining a new business model.
The large outbreak of covid 19 disease in many countries around the world has drastically reduced the consumption of garments. As a result, the disruption of the raw material supply chain and the number of orders were drastically reduced, resulting in Vietnam’s textile and garment export turnover in 2020 only reaching USD 35.29 billion, down USD 3.6 billion compared to 2019.
Although this has been an impact on the textile industry in Vietnam still have a minor decline in its growth compared to many countries in the world. In the global context, the world textile and garment industry in 2020 has a total demand decreased by 25%.
Although domestic epidemics are well controlled, many export-oriented manufacturing and service enterprises may have long-term problems, the Vietnamese garment industry adapts to the new situation and changes course.
With what Vietnam’s textile and garment have gone through in 2020, the experiences drawn and applied for better development in the coming years include:
- Increase production capacity following modern models.
- Implementing digital transformation in operation activities, especially in the process of production management, warehousing, production and logistics.
- Try to foresee risks accurately and provide solutions well; change adapts quickly in production directions and produce non-traditional products….
- Make the right decisions in time, adapt and seize opportunities through the smallest ones.
- International relations: In the still volatile global economic situation met by complicated epidemic diseases, Vietnam companies sent messages to international organizations, asked international customers to respect the terms signed in the contract and take responsibility for the materials and orders they agreed to make. The customer’s consent helped reduce the pressure for Vietnam’s garment companies. Customer consensus and support are highly valued and appreciated.
In 2020, Vietnam has signed two important trade agreements, EVFTA and RCEP that open up many opportunities for Vietnam’s textile and apparel exports in the coming years.
- The European Union-Vietnam Free Trade Agreement (EVFTA) was signed and officially entered into force on August 1, 2020. Since its operation, this agreement has yielded positive results, helping to increase Vietnam’s export turnover of goods in general and apparel products in particular to the EU market.
- The Regional Comprehensive Economic Partnership (RCEP), signed on November 15, 2020, is a free trade agreement consisting of 10 ASEAN members and 5 countries with which ASEAN has signed the free trade agreement (Australia, China, Japan, Korea and New Zealand). RCEP is less strict than EVFTA, so it is expected to expand many potential export markets for Vietnamese enterprises, such as the market of China, Japan…. In addition, RCEP also creates motivation and opportunities to exchange, distribute and develop textile and garment technology, as well as helping to solve the shortage of raw materials.
As we can see little by little the world is changing, and the future of the textile industry is to adapt to this new world system.