Vietnam textile export reach $12 mn till now, lowest growth recorded

Vietnam’s textile exports has reached $12 million, growth of 9 percent compared to the same period last year, this is the lowest growth recorded for the last three years, well down on 19 percent recorded for the same period of last year, according to Vietnam Textile & Apparel Association (VITAS).

Textiles are a major export of Vietnam which is targeted at $27 million to $27.5 million for this year. In 2014 textile exports had reached $24 million.

Out of the $12 million export achieved so far, only 27.5 percent came from domestic firms, with foreign-invested firms accounting for the vast majority.

Although the US market is showing some positive signs it cannot compensate for declining orders from Japan and the EU. The textile industry has faced many difficulties this year, with smaller orders coming from regular markets such as Japan and the EU. Orders are still being placed but most are still small, meaning the situation is likely to continue.

The reasons behind the smaller orders include an increase in the VND-USD exchange rate as well the economic crisis in Greece, which is affecting the EU economy, according to Mr. Le Quang Hung, Chairman of Garmex Saigon.

Another reason is Vietnam textile exported to the EU and Japan when reached to consumers their prices are much higher and so fail to sell.