People in the Vietnamese footwear industry said that although difficulties still exist, Vietnamese companies expect orders to improve slightly in the next few months, hoping inflation pressure will ease and welcome a better new year in 2024. Will shoe factories' orders be restored in the near future?
China News Service, On August 24, people in the Vietnamese Leather and Footwear industry said that although difficulties still exist, Vietnamese companies expect orders to improve slightly in the next few months, hoping to apply Inflationary forces will ease and welcome a better new year in 2024.
Will shoe factory orders be restored in the near future?
The Textile, Garment, Seafood and Leather Shoes Association forecasts that export orders will increase in the next five months of this year, local newspaper Viet Nam News reported on Thursday.
Ms. Phan Thi Thanh Xuan, Vice President of the Vietnam Leather Handbag and Shoe Association, pointed out that difficulties could last until the first quarter of 2024, emphasizing the importance of strengthening trade promotion.
Orders will recover in the coming months
Deputy General Director of Duc Giang Garment Fashion Co., Ltd., Mr. Pham Thong Lam, said that this year the fashion industry in the first 6 months of the year faced many difficulties. According to preliminary statistics from the Ministry of Industry and Trade, from January to July, the industry growth rate decreased by 16.7% compared to the same period last year to 21.5 billion US dollars.
However, there are positive signs in Vietnam's main export markets and inflationary pressures are easing.
Mr. Lam said orders are coming back and his company is racing to find orders for 2023.
The Vietnam Textile and Apparel Association (Vitas) said that orders for the garment industry will increase in the remaining months of the year, helping to compensate for the decline in the first half of the year.
The association will reset this year's export target from 39 to 40 billion US dollars, an increase of 10% compared to 2022.
What is the basis for predicting the possibility of order recovery?
VASEP said the basis for the forecast includes positive economic development in key markets, which will boost consumer demand. In addition, demand in markets such as the US and China tends to increase in the context of reduced inventory and preparation of orders for the end of the year and the new year.
Ms. Phan Thi Thanh Xuan, Vice President of the Vietnam Leather Handbag and Shoe Association, said inventory in major markets, including the US, is decreasing, creating space for agents to place new orders. She said, Vietnam is still the choice of big brands such as Nike and Sketchers.
Ms. Xuan said that difficulties will continue and added that it will take until the first quarter of 2024 for the footwear industry to escape the difficult situation.
She said that strengthening trade promotion is of great significance in helping businesses find orders and overcome difficulties.
The Ministry of Industry and Trade has asked foreign market trade agencies to increase trade circulation to create opportunities to increase exports, adding that, in the context of the forecast domestic and world economic situation, still facing difficulties, import demand will gradually recover in the remaining months of the year. .
Mr. Nguyen Tien Quang, Chairman of the Da Nang Branch of the Vietnam Chamber of Commerce and Industry, said that global aggregate demand has shown signs of recovery, inflation is expected to have peaked, which means inflation will decrease. next time. This will lead to a recovery in trade and growth in employment demand.
Mr. Quang said that it is reasonable to expect exports to increase in the remaining months.
He noted that loosened monetary policy in many countries will help production and trade have a chance to recover, especially in large markets such as the United States and the European Union.
The Vietnam Trade Office in the United States calls on Vietnamese companies to invest in production, upgrade technology and reduce emissions to meet the growing needs of buyers.
Mr. Tran Ngoc Quan, Vietnam Trade Counselor in Belgium and the EU, said that although demand from the EU has decreased, the EU's higher standards for goods have forced manufacturers to convert production to meet the demand. Meets the requirements of sustainable development, environmental protection and carbon emissions.
He called on businesses to carefully study market demand and new trends in global production and consumption, make appropriate production transformations, and achieve sustainable exports.
Source: Vuong Dung Quan
Raw Materials and Accessories for the Leather, Shoes and Handbags Industry compiled by Alran