VITAS reports the local textile industry has rebounded from the bottom.

According to recent statistics from the Vietnamese government, Vietnams`s textile exports for the first seven months of 2024 reached a total of US$20.3 billion, showing a 6.3% increase compared to the same period last year.

Furthermore, Vietnamese textile manufacturers have reaped the benefits of the surge in demand associated with the Paris Olympics, leading to an increased interest in sports and leisure clothing.

SSI Securities expresses a positive outlook for Vietnam’s textile sector, anticipating a continued influx of orders as the severe political unrest in Bangladesh may compel certain original equipment manufacturers (OEMs) to cease operations.

This situation could drive global apparel brands to shift their production facilities to Vietnam and other regions as a strategic response.

Nevertheless, rising labor costs, including a 6% hike in basic wages since July, are exerting pressure on the profit margins of the overall textile industry. Only approximately half of the 30 publicly listed textile companies in Vietnam reported an increase in profits during the second quarter.