Notably, sectors experiencing notable recovery include fashion, furniture, and household goods.
Mr. Ta Hoang Linh, from the European-American Market Department at the Ministry of Industry and Trade, pointed out that actual data indicates that Vietnam's textile and garment exports have reached US$12.8 billion since the beginning of the year, up 7.4 percent over the same period last year. Additionally, leather, footwear, and handbag exports have reached nearly $7.9 billion, showing a 7.3 percent increase. Meanwhile, wooden products, a significant component of the furniture and household goods industry, have also seen substantial growth of over 25 percent compared to the previous year, reaching $4.9 billion.
Providing insight into this matter, Ms. Duong Thi Minh Tue, Vice Chairwoman of the Handicraft and Wood Industry Association of Ho Chi Minh City (HAWA), noted that the United States has been considering interest rate cuts to stimulate consumer demand and expand import-export activities. The European market has rebounded from its downturn, with depleted inventory levels and a resurgence in import demand. As a result, many wood businesses have secured orders through the end of 2024.
In the textile and garment sector, Mr. Tran Nhu Tung, Vice Chairman of the Vietnam Textile and Apparel Association, has announced a target of $44 billion for the industry's export revenue in 2024. With the improvement in enterprise orders during the first five months of the year, Vietnam's fashion items are generally competitive in terms of product quality and the ability to meet rigorous labor and environmental standards. Additionally, Vietnam's fashion industry benefits from potential market advantages derived from various combined incentives of the 16 bilateral and regional free trade agreements.
However, the growth rates of these industry sectors have not yet fully reflected the complete recovery of the global market, particularly in key markets such as the US, the EU, and Japan.
On another note, many businesses are encountering significant challenges due to increasingly stringent standards imposed by key export markets like the US, the EU, Northeast Asian countries, and CPTPP countries regarding the greening of supply chains, sustainable development criteria, and circular production. For example, in the textile, footwear, and leather industries, exporting enterprises must navigate through numerous "green barriers" when entering developed markets, particularly the EU bloc. Most recently, the European Parliament voted to pass the Corporate Sustainability Due Diligence Directive (CS3D), scheduled to take effect on July 1, 2024.
In the furniture, woodworking, and household goods sectors, amended and newly enacted laws in the US and the EU impose stricter requirements on wood traceability, safety certification, and enterprise reporting, as well as regulations on forest management and chemical use for Vietnamese exporting businesses.
Therefore, transitioning to green practices alongside implementing circular economy models is an inevitable development trend to meet market demands and regain momentum for these strong sectors. Additionally, given the specific characteristics of industries requiring continuous design adaptations to align with market trends and preferences, businesses in this sector must remain proactive, have clear strategies, and regularly update trends and tastes in export markets.
Fashion, furniture, and household goods enterprises must redefine their production processes and invest in green technology to optimize efficiency and reduce waste. Furthermore, establishing a sustainable supply chain is paramount. These businesses need to collaborate closely with suppliers to ensure sustainable and efficient production and transportation of materials and products. Furthermore, fashion, furniture, and household appliance businesses should take proactive steps to invest in and implement digital transformation in their production and management processes. This approach will create opportunities to access international markets," emphasized Mr. Tran Phu Lu, Director of the Ho Chi Minh City Investment and Trade Promotion Center (ITPC).
