IMF: Global Cost Pressures Remain High, Textile Consumption Recovers Unevenly
According to the IMF’s July 2026 World Economic Outlook Report, global economic growth for 2026 is projected at 3.0%, lower than previous forecasts, while inflation is set to rise to 4.7%, reflecting mounting pressures from energy, raw material, and logistics costs. The IMF projects prices for oil, natural gas, fertilizer, and food to increase across the board, driving up enterprise input costs.
Although global trade is expected to grow by 3.5%, this surge is largely driven by front-loading shipments, supply chain realignments, and the tech sector, rather than reflecting an even recovery in textile demand. The US continues to maintain growth, but high inflation could weigh on consumer spending, while Europe’s growth remains sluggish with weak purchasing power.
Given this backdrop, textile enterprises must proactively develop multiple contingency scenarios, incorporate changes in energy, logistics, interest rate, and foreign exchange fluctuations into their production planning, pricing, and order negotiations, while closely monitoring purchasing power dynamics in key export markets to mitigate risks in the final months of the year.
Source: IMF World Economic Outlook Update, 07/2026
EU Significantly Reduces Sustainability Reporting Requirements
On July 3, 2026, the European Commission (EC) adopted the revised European Sustainability Reporting Standards (ESRS) along with a voluntary reporting framework for small and medium-sized enterprises, aimed at easing compliance burdens and reducing ESG reporting costs. Under the revised rules, the number of mandatory reporting indicators has been cut by more than 60%, total disclosure requirements reduced by over 70%, and reporting costs for businesses expected to drop by over 30%. The new standards are awaiting review by the European Parliament and the Council of the EU before taking effect.
Despite the simplified reporting requirements, the EU is not easing its ESG standards across supply chains. Vietnamese textile exporters to the EU must still prepare comprehensive data on emissions, energy, water, labor, traceability, and chemical usage to meet client demands and comply with green trade regulations. The new voluntary reporting standard is also expected to help harmonize ESG reporting requirements, ending the issue of suppliers outside the EU facing fragmented, client-specific criteria.
Source: European Commission
Container Freight Rates Keep Rising as Logistics Pressures Persist
International container freight rates continue to surge as the peak shipping season arrives early and transport capacity has yet to fully recover. In the first week of July 2026, the Drewry World Container Index rose 9% to $4,530 per 40-foot container, reaching its highest level since September 2024. Rates on major routes from Shanghai to the US and Europe jumped by 7% to 11%, while shipping lines continue to impose peak-season surcharges, and ongoing security risks in the Middle East cloud the outlook for any short-term rate reductions.
Given these developments, textile and garment enterprises must proactively incorporate freight costs and surcharges into their quotations, production planning, and delivery schedules. At the same time, companies should engage with clients regarding shipping terms, cost-sharing arrangements for unexpected surcharges, and contingency plans in the event of continued vessel schedule volatility.
Source: Drewry World Container Index
Circular 33/2026/TT-BCT Requires Textile Companies to Review Product Compliance Documentation
On June 30, 2026, the Ministry of Industry and Trade issued Circular 33/2026/TT-BCT (effective July 1, 2026), replacing Circular 41/2023/TT-BCT. The new circular regulates the list of medium- and high-risk products and goods under the Ministry’s management scope. For the textile and garment industry, textile products remain on the managed quality list and must comply with QCVN 01:2017/BCT regarding limits on formaldehyde and aromatic amines derived from azo colorants. Enterprises must carry out declarations of conformity as mandated, while certificates and declarations of conformity issued prior to the circular’s effective date will remain valid until their expiration.
Textile enterprises need to review HS codes, testing dossiers, conformity certificates, and coverage scopes for both domestically produced and imported goods distributed in the Vietnamese market. In particular, export-focused businesses that also sell locally, liquidate inventory, or market product samples must comply with these regulations while closely monitoring updates to QCVN 01:2017/BCT to ensure full compliance with quality management requirements.
Source: Ministry of Industry and Trade, Circular No. 33/2026/TT-BCT dated June 30, 2026
