Despite facing difficulties, the garment and textile sector in Vietnam is expected to export products worth $31 billion this year, a year-on-year increase of 10.2 per cent, and the outlook is bright for next year too, the Viet Nam Textile and Apparel Association (VITAS) has said.
Vu Duc Giang, Chairman of the Viet Nam Textile and Apparel Association, says that the export outlook for the garment and textile sector is bright for this year and next year too. Speaking at a press briefing in HCM City recently to review the sector’s performance this year and draw up strategies for next year, Vu Duc Giang, the association chairman, said exports fell in the fourth quarter of last year and the first quarter of this year due to the impact of the US’s withdrawal from TPP. Faced with the situation, textile firms have quickly overhauled their production systems, focused on advantageous products and developed others to meet market demand, and sought new markets, he said. They have also adopted the latest technologies to produce quality products more efficiently, he said.
The association has stepped up co-operation with foreign organisations to organise trade promotions and training and shared its experience in developing smart production models, he said. Thanks to all this exports have picked up sharply since the second quarter, he said. “This year we faced great competitive pressure from Bangladesh, Myanmar and Sri Lanka, with many buyers shifting their orders to these countries at the beginning of the year. “But from the end of the second quarter they shifted their orders back to Viet Nam because Viet Nam makes quality products and it is able to fulfil orders with short lead time.â€Â
Exports in the last two months of the year are expected to be worth $5.27 billion, and full year exports, $31 billion, with the US, the EU, Japan, and South Korea being the biggest buyers, he said. Shipments to other markets like China, Russia and Cambodia have also increased sharply, he said. Next year exports could reach $33.5-34 billion, he said. Many companies have export orders for until the end of the second quarter next year, he said. Nguyen Thi Tuyet Mai, VITAS deputy secretary general, said China currently buys only 3 per cent of Viet Nam’s exports, but is potentially a huge market due to its population. Viet Nam started to export textile and garments to China this year and the shipments are expected to increase significantly next year, she said.
Imports of raw materials are forecast to be worth $18.9 billion this year, an increase of 11.4 per cent over last year. Fabric imports are expected to cost around $11.2 billion (up 6.8 per cent); cotton, $2.4 billion (up 44.3 per cent); yarn, $1.76 billion (up 9.5 per cent); and other raw materials, $3.55 billion (up 10.4 per cent).