Textile enterprises have negative growth

According to statistics of VnDirect Securities Joint Stock Company, more than half of listed textile and garment enterprises have negative growth due to the decrease in the number and size of orders in the context of the US-China trade tension not yet subsided. The fear of instability caused most of the main export markets of Vietnam’s textile and garment to slow down.

Besides, the dong has been flat since the beginning of the year while the local currencies of rival countries in textiles such as China, India, and Pakistan have depreciated stronger, making Vietnam’s textile and garment exports more disadvantageous.

These are the main factors that caused the total revenue of listed companies to decrease by 1.6% over the same period last year.

A garment company in Hung Yen. Photo: QH

Viet Tien Garment Joint Stock Company (VGG) is the enterprise with the strongest decrease of these with 13.6%. The revenue of the Vietnam Textile and Garment Group (VGT) was 950 billion VND lower than the same period last year.

The bright spot of Vietnam’s textile and garment in this period is increasing its market share in the US market both in terms of export volume and value. Textile and garment exports to this market brought in more than 11.2 billion USD in the first 8 months of the year. In addition, some enterprises such as Century Yarn Joint Stock Company (STK), Song Hong Garment Joint Stock Company (MSH)… thanks to changes in product structure, improved gross profit margin.

“Vietnam’s textile and garment will return to good growth momentum thanks to significant benefits from free trade agreements. Diversifying export destinations also helps the industry reduce dependence on the US market and ensures bright prospects. in the context of instability may persist”, the representative of VnDirect forecast.

According to VN Express