In Vietnam, the textile, apparel, and footwear sectors are facing losses due to a drop in export orders, and the situation is anticipated to worsen through the first half of next year.
The chairman of Viet Thang Jean Co., Ltd., Pham Van Viet, reported a decline in orders at his company since June. “Orders are down about 60% in Europe and 30–40% in the US market, and they are decreasing in important areas,” he said.
Similar issues are being experienced by other footwear enterprises.
Nguyen Chi Trung, Chairman of the Board of Directors of Gia Dinh Group Joint Stock Company, stated that most markets have reduced orders by 30–40% compared to the same period in 2021. This trend is likely to continue, with orders likely to decline further in the coming months.
Businesses across the board reported that, compared to the third quarter of this year, import and export activities will encounter significant challenges in the second half of the fourth quarter of 2022 and the early months of 2023. Orders for important export industries, particularly textiles, footwear, furniture, iron and steel, and cement, are predicted to decline significantly. Many businesses currently need to cut back on both staff and production in order to wind down in the final months of 2022.
In light of the fact that export markets are contracting and demand is declining, Phan Thi Thanh Xuan, vice president and secretary general of the Vietnam Leather-Footwear and Handbag Association (Lefaso), stated that manufacturing businesses must diversify their markets.
