Although the sector witnessed positive export prospects in the first and second quarters last year, it started facing difficulties in the last two quarters as global demand declined. The export value peaked in August last year.

A sharp decline in orders since September last year was attributed to a reversal of the trend, causing the sector’s export value to fall to the year’s lowest level in the last quarter.

Statistics from 15 leading enterprises in the textile and garment industry compiled by cafef.vn showed that the total consolidated profit after tax in the fourth quarter of 2022 was only 440 billion VND ($18.7 million), down by 63 per cent from the fourth quarter of 2021, amid high inflation and recession risks in the main export markets.

Vinatex incurred a loss of $5 billion during Q4 2022. Its profit after tax had reached $450 billion in the same period in 2021. It was also the first quarter that Vinatex has recorded a loss, according to a news agency.

In the first months of the fourth quarter last year, Vietnamese businesses faced a difficult situation when the yarn market's liquidity was almost zero, the garment market's orders dropped sharply and its subsidiaries, especially fibre units, reported losses.

However, for the whole of 2022, Vinatex still made a profit of more than 1 trillion VND, down by 20 per cent YoY.

Fibre2Fashion News Desk (DS)