Vietnam’s garment exports are set to rise 9% to reach $43 billion this year despite negative global economic factors.
Although Vietnamese garment and textile manufacturers saw declining orders in the second half of this year due to weakening global consumption and rising inflation, exports will increase $2-4 billion from 2021, the Vietnam Textile and Apparel Association (VITAS) said in a recent note.
The falling orders and low price situation, however, will likely continue until the first or second quarter next year. VITAS advises its members to not sign contracts with large discounts amid a shortage of orders. The association forecast that the sector will continue to grow next year, with exports tipped to reach up to $48 billion in a favorable market and at least $45 billion in a less favorable market.
To stay competitive and ensure the marketability of their products, enterprises need to switch to packaging that meets sustainability requirements and is easily recyclable as more and more consumers become aware of environment safety, a conference heard in Ho Chi Minh City on December 22.
With the concept of the circular economy becoming more influential, designing packaging specifically to be recycled is becoming a vital part of the packaging process. Late last month, the EU Commission proposed regulations on packaging and packaging waste that impose mandatory rates of recycled content that producers have to include in new plastic packaging, specify standardisation for some packaging formats and ban certain forms of packaging among other things. Exporters need to monitor the market closely to keep up with markets’ requirements.
Last week highlight
The transition towards a circular economy (CE) offers 4.5 trillion USD in economic opportunities globally by reducing waste, stimulating innovation, and creating employment, according to the Resident Representative of UNDP in Vietnam.
Small- and medium-sized enterprises (SMEs), which comprise 96% of the total number of enterprises in Vietnam, have a critical role in accelerating the transition towards CE, he stressed. A recent UNDP-initiated capacity-building programme, in partnership with the Netherlands Embassy, has trained over 100 Vietnamese enterprises in various sectors to scale up CE models, adopt low-carbon technologies, and shift production and consumption models to greener ones.
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Let’s look at some other key financial and business headlines during the past week
- WTO names Vietnam among 30 largest commodity export-import economies
- Foreign investors continue to pump investment into Vietnam
- Trade surplus increases, agriculture shines
- Firms urged to switch to sustainable packaging
- Garment exports to grow despite global challenges
- Apple plans to start producing MacBooks in Vietnam by mid-2023
- Vietnamese, German partners seal deal in air transport, logistics
- 11M exports outperform all of 2021
Key words: Vietnam, business, finance, economy