Another layoff of nearly 1,000 employees, Vietnams textile exports in difficulty

Vietnam's textile export orders are facing difficulties, not only small businesses, but many manufacturing "big players" that have contributed billions of dollars in export value, such as textiles, apparels, leather and footwear are expressing worries when the market was not optimistic in the first quarter.

In 2023, this situation may even continue until the second quarter. Orders will decline, which will have an adverse impact on the production and operation efficiency of enterprises and will not contribute much to the economy.

According to Mr. Vu Duc Giang, chairman of the Vietnam Textile and Garment Association, in the first three months of 2023, Vietnam’s textile and garment exports totaled an estimated US$8.701 billion, down 18.63% from the same period in 2022.

Meanwhile, Vietnam’s exports to most major markets have fallen sharply over the same period. For example, the EU market fell by 4.2%; ASEAN fell by 8%; Japan fell by 5.9% in the first two months of this year, and the United States fell by 21%.

On April 3, the Ministry of Labor, Invalids and Social Affairs of Dong Nai Province stated that starting from April 2023, TKG Taekwang MTC Vietnam Co., Ltd (shoe factory, headquartered in Loteco Industrial Park, Bien Hoa City) will lay off nearly 800 workers. The reason is that starting from the end of 2022, the company is facing a reduction in orders, so that it has taken the initiative to lay off employees according to the plan.