Vietnam’s textile and garment sector enjoyed a rosy year in 2022 despite the formidable challenges, with export revenue hitting the target of $44 billion, according to the Vietnam Textile and Apparel Association.

The figure represents year-on-year growth of 8.8 per cent.

Many businesses, however, believe it will difficult to maintain this level of growth in 2023. Domestic consumption fell sharply in the fourth quarter of 2022 and is forecast to remain low in the first quarter of this year.

Enterprises faced a shortage of orders coupled with falling prices in the fourth quarter of 2022 and in early 2023. Expanding distribution networks is also a costly endeavor.

A representative from the Tinh Loi Garment Company said order numbers were down 20-30 per cent in the first quarter.

The Vietnam Textile and Apparel Association said many businesses have been forced to reduce production and let workers go in a bid to cope with the difficulties.