Garmex Saigon, which once had 3,700 workers on its payroll, had just 35 staff at the end of 2023, has started selling assets to cover losses, Tuoi Tre is reporting. This is after failing to secure any new orders for the firm in the fourth quarter of last year. Other garment firms featured in this article have also reported sharp drops in revenue and profits.
Vietnam’s garment manufacturing sector has been hit hard by high inflation in key export markets namely the European Union and the United States. As consumers in these markets have tightened their belts, local garment producers have seen orders drop considerably over the last two years.
According to Vietnam General Department of Customs data, exports of garment and textiles last year reached US$33.33 billion, down from US$36.97 billion in 2022, a drop of 11.4 percent. This has had a significant impact on the local economy with garment and textile firms typically locally owned working under contracts with foreign brands.