Garment and textile exports up nearly 8% in Q1

(ĐN)- Dong Nai’s garment and textile export turnover in the first quarter of this year reached over US$400 million, up 8% year-on-year.

The U.S. remains the largest export market for Dong Nai’s textile and garment industry, accounting for nearly 40% of total export turnover. Garment and textile are the fourth biggest export commodity groups of Dong Nai after footwear, machinery and equipment, spare parts and coffee.

However, Dong Nai's textile and garment export turnover showed signs of decline in March. Accordingly, textile and garment enterprises exported nearly USD 131.4 million, down nearly 3% compared to the same period last year. According to the Vietnam Textile and Apparel Association, challenges still lie ahead, and the situation may become clearer after the second quarter of 2025. As Bangladesh’s textile industry continues to recover, fewer orders are being redirected to Vietnam.

In 2024, Bangladesh faced political instability, resulting in a loss of about 30-40% of its textile and garment orders. Consequently, Bangladesh, previously the world's second-largest textile exporter, fell to third place, with Vietnam surpassing it.

Presently, Bangladesh has implemented timely policies to restore its exports. As it resumes textile and garment production and exports, Vietnam's textile industry will face intense competition. Bangladesh has advantages of low labor costs—just one-third of Vietnam’s—and preferential tariff treatment as a less developed country.

Additionally, the textile and garment industry in Dong Nai in particular and Vietnam in general is confronting increasingly stringent technical barriers from major importing markets. Specifically, garment factories must meet green production standards, such as low carbon emissions, the use of recycled materials, and clear traceability of raw materials and products. These requirements may slow down Vietnam’s textile exports, including those from Dong Nai. Consequently, businesses are compelled to prioritize investments in green factories and modern technology to reduce labor dependence, enhance productivity, lower production costs, and boost competitiveness.

Reported by K.M