·         Textile & garment export turnover is forecasted to decelerate in the last 4M202 after strong growth in the first eight months compared to the same period last year. Signs of weakening export turnover began to appear from Sep 2022.

·         Difficulties surrounded Vietnamese textile & garment companies in 4Q2022 and may continue until 1H2023 with the risk of price negotiation and order reduction. Customers negotiate prices and reduce pre-orders in response to the negative impact of major export markets such as the US and Europe, when high inflation affects consumers' purchasing power as well as slower inventory rotation.

·         The elevated USD/VND exchange rate also has affected several domestic textile and garment firms. Although Vietnamese T&A companies have revenue recorded in USD, they still have to bear the costs of purchasing input materials, logistics costs and interest expenses in USD. Therefore, when revenue in USD is unable to cover expenses, textile and garment companies will be negatively affected when the USD/VND exchange rate escalates.