As COVID-19 has rendered some of Vietnam’s traditional markets unstable, China is set to become its major export market for the textile and garment industry.
As per VN Express International, Vietnam’s textile and garment exports to China in Q1 experienced the highest growth among the five largest textile and garment export markets. Textile and garment export value to China during the period was as high as that to the EU at $680 million.
This year Vinatex faces falling demand for office wear, which is one of the group’s main products. Amidst the pandemic, consumers prefer casual wear and sportswear. Another difficulty is that inflation is expected to rise this year, resulting in higher lending rates and increased financial expenses.
Vinatex targets revenues of VND1.5 trillion ($66 million) this year, up 5 percent year-on-year, and pre-tax profit of VND201 billion, up 37 percent. The group said it will continue to divest from ineffective companies this year.
Vietnam's textile and garment exports in the first five months of 2021 hit $12.2 billion, up 15 percent year-on-year, according to the General Statistics Office.