VN textile, garment sector finds new way increase export turnover

The state-run Vietnam National Textile And Garment Group (Vinatex) General director Le Tien Tuong said that the group strives to push up production by 14 percent compared to last year. The group will make the effort to increase export turnover by 11 percent and import turnover by 9 percent. To complete the goal, Vinatex will focus on expanding its markets more especially key markets such as the US, EU, and Japan.

When it comes to 2017, VITAS said that the sector will still face difficulties because of fierce competition and strong competitors will continue attract more order than Vietnam thanks to its government’s tariff and foreign exchange preferential policies and political unrest in some countries.
Vinatex added that in 2017, Vietnamese textile and garment sector will not yet take full advantages of EVFTA and TPP which take effect in 2018.

With such prediction, the sector set target of 6.5-7 percent in 2017 or US$30 billion.

As per the Ministry of Industry and Trade, in 2017, in addition to opportunities, the integration will produce challenges for the sector especially for small and medium companies. Local small and medium enterprises can even lose its traditional commodity order which bigger companies especially FDI companies will grasp it. Subsequently, small and medium companies should have long broad and long-term strategies besides the government’s support to overcome the rough time.

He petitioned that the government should have policies to encourage local enterprises in implementing of higher export processing methods, namely FOB, ODM and OBM. Moreover, the government should have preferential credit policies to purchase Vietnamese materials and for investment of special equipment as well as organizing promotion fair to attract more customers.

The Vietnam’s textile and garment sector’s export turnover reached around US$28.5 billion in 2016, completing 92 percent of the goal. The Vietnam Textile and Apparel Association (VITAS) said that there had been downturn in the world; therefore, all nations faced difficulties in expanding market even big countries like India, China whose export turnover reduced compared to 2015.

Minister of Industry and Trade Tran Tuan Anh highly lauded the sector because despite difficulties faced, its current market share in giant markets showed a growth; for instance, its market share in the US increased by 11 percent and also in Japan.

Vietnamese textile was in stiff competition with its strong Chinese, Indian, Pakistani and Bangladesh competitors which enjoy their governments’ preferential policies.