According to the Statistics Bureau of Vietnam, Vietnam's garment exports in January-May 2023 amounted to $12.3 billion, down 17.8% year-on-year. Some textile and garment enterprises said that since the first quarter of this year, the export orders of the textile and garment industry have continued to decline, the proportion of production reduction has increased, and it is not uncommon for the sales of various enterprises to fall 40-50%, of which the income of large and brand enterprises has also fallen 20-30%. The head of Successful Textile Investment and Trading company said that revenue in the first five months of this year was down 20-25% compared to the same period last year, and Pingsheng Import and Export Company (Gilimex) also lowered its revenue target for 2023 by more than 50% compared to last year, and the after-tax profit reduction reached 71%.

Vietnam textile and clothing enterprises believe that in the first half of 2023, the global demand for textile and clothing has decreased, and the prices of raw materials such as American cotton/Brazilian cotton/Australian cotton have continued to rise sharply since July (ICE main December contract rose from 76.81 cents/pound to 85.80 cents/pound). The increase reached 11.70%, the domestic electricity price rose by 3%, and the rise in the wages of Vietnamese workers (the average monthly wage cost of Vietnamese workers rose to $300 / person, significantly higher than competitors in Indonesia, Bangladesh, Thailand, etc.), and the weakening of the demographic dividend advantage have exerted great pressure on textile clothing.

Some weaving enterprises in Guangdong, Jiangsu and Zhejiang provinces, textile import and export companies said that since July, the number of Vietnamese cotton yarn to Hong Kong and storage has slowed down significantly compared with May/June, due to the Vietnamese large and medium-sized cotton mills and traders, the price sentiment is relatively strong, and the activity has gradually been replaced by Indian cotton yarn and Pakistani cotton yarn. On the one hand, due to cotton and other raw materials, high labor costs and currency fluctuations, most enterprises in Vietnam are in a state of loss in spinning, coupled with serious cotton inventory backlog, so textile enterprises generally face greater financial pressure; On the other hand, the production and marketing capacity of textile and garment enterprises in India, Pakistan, Bangladesh and other countries continues to recover (the foreign exchange reserve crisis has been greatly alleviated), and the export advantages of gauze and clothing have gradually reflected, and it is not uncommon to grab orders and market share from Vietnamese enterprises. It is understood that some cotton mills are "under the enemy", pessimism is strong, so the enthusiasm of receiving orders and ordering is not high, in order to reduce losses and reduce inventory, some small and medium-sized textile enterprises to reduce production and stop production has become the norm.

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