After a difficult 2023, textile and apparel companies are preparing for 2024 while navigating a difficult environment.
The industry, which faces numerous challenges due to variations in the world economy, recorded a 10% fall in turnover and a 30% decrease in unit manufacturing costs in the previous year. Except for the pandemic-hit year 2020, Lê Tiến Trường of Việt Nam National Textile and Garment Group deemed 2023 to be the most difficult year in over thirty years.
Industry insiders advise a tactical change, stressing that companies must diversify their product lines and increase their consumer bases to achieve long-term success. Despite international difficulties, Vietnam’s textile and apparel industry continues to be a model of excellence thanks to its highly skilled labor force, enormous production capacity, political resiliency, and compensating policies.
The sector is recommended to concentrate on sustainable development in line with global demands to survive obstacles. It is advised to make investments in automation and technology to ensure meeting deadlines for deliveries and upholding premium standards.
Businesses are encouraged to adjust to trends favoring smaller quantities, quick deliveries, robust supply chains, and effective cost management as it is anticipated that export orders would decline. The industry is expected to encounter challenges such as the Carbon Border Adjustment Mechanism (CBAM), Extended Producer Responsibility (EPR), and a trend toward “sustainable fashion” as opposed to “fast fashion.”
