HANOI, May 18 (Xinhua) -- Vietnam's garment exports fell further in April as consumers in its major markets cut back on spending amid a likely looming recession, the Saigon Times reported on Thursday.
Textiles and garments reported a year-on-year decline of 19.3 percent in export earnings to 9.6 billion U.S. dollars during the January-April period after falling 17.4 percent in the first quarter, according to the General Statistics Office.
Vietnam's shipments to the U.S. and China in the first four months of the year slumped more than 30 percent while exports to Europe fell 12 percent, according to a report by the country's largest textile and garment maker Vinatex.
As Japan has emerged from a technical recession thanks to a recovery in household spending, Vietnam's garment exports to the market inched up 6.6 percent to 1.2 billion dollars over the period compared to a year ago, said the report.
Since the textile and garment industry are among the country's largest export earners, the hit to its export earnings has put more pressure on Vietnam's economy which grew 3.32 percent in the first quarter, slowing from a growth of 5.92 percent in late 2022 and 5.03 percent in the first quarter last year, said the General Statistics Office.
Local garment and textile makers are faced with a credit crunch that has limited their ability to secure funds from commercial banks for working capital, said the Ho Chi Minh City Union of Business Associations (HUBA).
A shortage of funds has also forced some companies into a debt repayment crisis, HUBA added.
Of businesses recently surveyed by HUBA, 41.2 percent reported a shrinking market demand, 17.6 percent were hit by rising input costs, 17.6 percent faced a shortage of funds, and 11.2 percent were in need of skilled staff among other challenges and difficulties.
