Home / Knowledge / News / Textiles / Vietnam's textile industry hit by US-China trade war

Vietnam's textile industry hit by US-China trade war

Oct '19
Pic: Shutterstock
Pic: Shutterstock
Vietnam’s textile industry is facing many difficulties due to the prolonged China-US trade war, witnessing a fall in both export and production, say industry experts. Buyers are seeing fewer and smaller orders because of the conflict, said a ministry of investment and planning report. Export of raw materials to China plummeted as China cut back on imports.

China has been traditionally a major market for Vietnamese products and accounts up to 60 per cent of the country’s total export volume.

A performance review of the Vietnam National Textile and Garment Group (VINATEX), one of the largest in the country also indicated the same trend. Among the most affected was yarn export with the price continuing to fall.

“As the global yarn industry faces worsening prospects due to the on-going trade war, competition among rival countries such as India, Indonesia, Pakistan, Thailand and Vi?t Nam has intensified,” said the review.

In stark contrast to last year when there were more than enough orders to work on until the end of the year by September, companies are scrambling to secure orders to maintain production, according to a report in a top Vietnamese newspaper.

A vast majority of orders, if they were signed at all, were of small volume and short-term as customers were constantly on the look-out for new developments of the trade war. In addition, more and more Chinese orders have been shipped to countries with better tax incentives like Cambodia and Bangladesh.

The possibility of Vi?t Nam’s textile industry hitting its target of $40 billion in exports this year is getting slimmer, said VINATEX vice president Truong Van Cam.

Along with the trade war’s adverse effects, expectations for trade deals such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA) were set unrealistically high, Cam said, adding such deals will take a while to make a real impact.

Fibre2Fashion News Desk (DS)

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

The budget will give major impetus to textile and apparel consumption

Top executives, Textile industry

Top executives
Textile industry

Denimsandjeans India 2018

Shiladitya K Joshi, Truetzschler India Private Limited

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Sugandha Bhardwaj,

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Vasudevan LK,

Vasudevan LK

Epson is a world leader in digital imaging and printing solutions....

Farheen B Rahman & Priti Jain,

Farheen B Rahman & Priti Jain

Founded by business-designer duo <b>Priti Jain and Farheen Rahman</b>,...

Suresh Patel, Sidwin Fabric

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Johan Berlin, InvestKonsult Sweden AB

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Giorgio Mantovani, Corman S.p.A

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Adriano Goldschmied, AG Jeans

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Anisha Chaudhari, Threads & Shirts

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Sonam & Paras Modi, SVA

Sonam & Paras Modi

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

November 2019

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

Follow us on instagram


Follow Fibre2Fashion On

Advanced Search