The world’s largest textile and garment-exporting countries are facing different situations
In the past three years, the changes in the global textile and apparel market have been affecting the hearts of thousands of enterprises and foreign traders. Since the beginning of this year, under the background of the slow recovery of global trade but the sluggish demand in European and American markets, the situation of these major textile and garment exporting countries has changed.
Multinational textile and garment exports continue to slump
India: Significant decline
According to the Global Textile website, affected by the slowdown of the global economy and the decline in global trade, the Indian textile and garment industry is facing a difficult situation. The industry relies heavily on developed economies such as the US and European Union (EU) markets, and exports to these regions have continued to decline since July 2022. According to data from the Ministry of Industry and Commerce of India, in the first half of 2022, India exported textile and clothing goods worth $22.33 billion, but in the second half of the year, exports fell to $16.21 billion, a drop of 27.40%. Moreover, the slump in India’s textile and apparel exports is expected to last until 2023, raising the possibility of layoffs in the industry, which employs more than 45 million people.
Pakistan: Prepare for production cuts and layoffs
According to the International News report, in the economic crisis, Pakistan’s industry is preparing for production cuts and layoffs, especially the textile industry. According to data released by the Pakistan Bureau of Statistics, Pakistan’s textile exports fell by at least 14.8%. Nasir Mansoor, secretary-general of Pakistan’s National Trade Union Federation, said as many as one million informal workers, mostly in the textile industry, would lose their jobs. In January 2023, Pakistan’s exports stood at $1.3 billion, down from $1.5 billion in January 2021.
Cambodia, Sri Lanka, and Tajikistan: Continued decline in exports
At the same time, the textile and garment exports of Cambodia, Sri Lanka, and Tajikistan also continued to decline. According to Global Textile Information, data from the General Administration of Customs of the Ministry of Economy and Finance of Cambodia showed that Cambodia’s garment exports fell by 28.01% to $556 million in January 2023. Statistics released by the Central Bank of Sri Lanka show that in January 2023, Sri Lanka’s clothing exports were $388.9 million, down 18.8% from $478.9 million in the same period last year. During the same period, the export value of Tajikistan’s textile raw materials and their products was 17.99 million US dollars, a year-on-year decrease of 35.4%.
Many countries maintain growth
However, although the textile and garment exports of India, Pakistan, Sri Lanka, and other countries are on a downward trend due to factors such as slowing global demand, Vietnam, Bangladesh, Egypt, and other countries have also achieved good results in substantial growth in exports.
Vietnam: Seizing Business Opportunities from Free Trade Agreements
The chairman of the Vietnam Textile and Garment Association said that in the first two months of 2021, Vietnam’s textile and garment exports reached $5.8 billion, a year-on-year increase of 4%. The same period in 2022 was only $3.5 billion, a year-on-year decrease of 9.8%. It can be seen from this that after the severe impact of Covid-19 in 2020, the textile and garment industry has obviously begun to recover. Vietnam’s textile and garment industry is facing huge opportunities brought about by a number of newly signed free trade agreements. According to Vietnamese newspapers, in 2022, the total export volume of Vietnam’s textile and clothing industry will reach $71 billion, the highest level in history. Among them, the export value of textiles and clothing reached $44 billion, an increase of 8.8% year-on-year. The export value of footwear and handbags reached $27 billion, a year-on-year increase of 30%. In 2023, Vietnam’s textile and garment industry has proposed a target of total exports of $46 billion to $47 billion, while the footwear industry is striving to achieve an export volume of $27 billion to $28 billion.
Bangladesh: 30% growth for two consecutive years
According to China Cotton Network, Bangladesh’s garment exports will surge by 27.6% year-on-year in 2022 after jumping 30.4% in 2021. Notably, in January 2023, the volume of US clothing imports from Bangladesh decreased by 5.6%. In dollar terms, however, Bangladesh’s exports surged 15.4% in volume and 22% in unit value from a year earlier. These latest U.S. figures confirm a shift in U.S. purchasing trends from China to Bangladesh.
Egypt: Garment exports broke the record
In addition, according to the report, Egypt’s garment exports in 2022 will set a new record. The Egyptian MASRAWY reported that the Egyptian Garment Export Council issued a report on January 26, announcing that the industry’s export value in 2022 will reach approximately $2.516 billion for the first time in history, an increase of 22% compared with 2021. Marie-Louis Bishara, chairman of the Egyptian Garment Export Council, confirmed that the industry has set an export target of $2.5 billion. It is reported that since 2019, Egypt has implemented modernization reforms in the textile industry. In February this year, the Egyptian Ministry of Trade and Industry also established the Textile Industry Committee, aiming to promote the development of the textile industry.
Each country has its own plan for the international market after Covid-19. Facing the changing market, foreign traders should adjust their strategy and direction in time, and should not follow the old ways all the time. The future is changing and full of challenges.
