·         According to VITAS, textile and garment export value in 1H 2022 is estimated at about USD 22 Bn (+23% YoY). The US market accounts for 57% of Vietnam's total textile and garment exports, implying that the prospects of the textile and garment industry in the coming time will depend greatly on the US economy.

·         On the negative side, the global demand for textile and garment, especially the US market, is likely to decelerate in 2H 2022 due to the "overbought" situation of consumers and high inflation that is tightening people's spending on consumer discretionary products. In addition, the lockdown in China and the implementation of the US ban on cotton originating from Xinjiang is causing the cost of raw materials to increase.

·         On the positive side, Vietnam can benefit from orders moving from China during the lockdown. In addition, once China opens up its economy, the cost of raw materials will start to cool off and the profit margin of companies in the industry will improve.