Vietnam’s textile and garment exports decreased by 27 per cent, which is almost $1.2 billion, in September 2022 to $3.2 billion month-over-month (MoM). China, South Korea, Japan, the US, and Europe showed a steep drop in exports because of weaker purchasing power due to rising inflation and other uncertainties.
“There are uncertainties running up to the end of the year, especially the Russia-Ukraine conflict and material price fluctuations,” chairman of the Vietnam National Textile and Garment Group (Vinatex) Le Tien Truong was quoted as saying by Vietnamese media reports. “Enterprises are seeking ways to diversify material supply sources as well as export markets because when material sufficiency is ensured, they can boost shipments to many markets, thus helping guarantee production stability, supply chain, and sustainable exports.” The USD/VND exchange rate is expected to continue to drop in the second half of 2022, negatively affecting businesses, particularly those with high expenses calculated in US dollars, noted capital market company Saigon Securities Incorporation (SSI).