Textile and garment exports are set for a boom this year, accordingto the Vietnam Industrial and Trade Information Centre (VITIC), aMinistry of Industry and Trade agency.
In January exports wereworth over 1.9 billion USD, marginally up from last year, but manycompanies in the textile and garment industry have received orders to beexecuted in the first and second quarters.
The US topped thelist of importers, buying textiles and apparel worth nearly 926.7million USD, or nearly half of Vietnam's total exports. Japan and theRepublic of Korea also bought more than 100 million USD worth ofproducts.
The full year's exports to the US are expected to top 11 billion USD, a year-on-year increase of 13 percent.
Japanesefirms' increasing investment in supporting industries in Vietnam hascreated favourable conditions for the textile and garment industry,VITIC said.
Exports to Japan are expected to rise by 9 percent this year to 2.9 billion USD.
VITICsaid once a free trade agreement with the EU is wrapped up, exports oftextiles and garments to that market would begin to rise, reaching 4billion USD this year.
The Vietnam National Textile and GarmentGroup (Vinatex) plans to invest 9.4 trillion VND (441.3 million USD) by2017 in 59 textile, dyeing, garment and infrastructure projects,according to the corporation.
They include 15 fibre production projects, 18 textile and dyeing projects,18 garment projects and eight infrastructure projects.
Underthe plan, Vinatex will disburse 2.425 trillion VND (113.85 million USD)to develop these projects this year, with 805 billion VND (37.8 millionUSD) going to fibre projects, 713 billion VND (33.5 million USD) totextile anddyeing projects, 726 billion VND (34.1 million USD) togarment projects, and 181 billion VND (8.5 million USD) toinfrastructure in industrial zones for the textile and garment industry,reported the Dau tu (Vietnam Investment Review) newspaper.
Withthe investment, Vinatex expects to increase this year its productioncapacity to 6,000 tonnes of fibre, six million metres of dyed cloth, twomillion vests and blazers and four million trousers, as well as onemillion shirts and two million knitwear products.
Vinatex is currently considered to have the largest scale in productionin the textile and garment industry, with 100 member companies, andholds 15 percent of the total national textile and garment export value.
However,the member companies of Vinatex still face difficulties in investmentin sub-material production, textile and dyeing projects.
VinatexGeneral Director Le Tien Truong said that the member companies don'thave large investment capital, presenting a major challenge for localtextile and garment firms in increasing the localisation rate.
ThePhong Phu Joint Stock Corporation is a member of Vinatex that has thelargest capital amount of 700 billion VND (32.86 million USD), whileother large member companies have lesser capital, such as Viet Tien with200 billion VND (9.4 million USD), Garment 10 with 100 billion VND (4.7million USD), and Nha Be with 150 billion VND (7.05 million USD).
Thelarge garment companies could not invest in full supply chains,especially regarding the production of materials and sub-materials fortextile and garments, to receive export orders as original designmanufacturers (ODM), Truong said.
Vinatex has equitised itsoperations from January 1 this year, he added, so the group will promotemanagement, investment and market and staff development.
Theparent company will also take on the role of a direct investor toincrease production capacity, especially self-reliance in materialproduction, in a move to reduce dependence on imports, rather thanmanage State-owned capital at its member companies, as it did beforeequitisation.
The group has set a target for its parent companyto earn 900 billion VND (42.25 million USD) in revenue and 288.4 billionVND (13.54 million USD) in after-tax profit in 2015; 2.3 trillion VND(107.98 million USD) and 342.3 billion VND (16 million USD) in 2016; and3.26 trillion VND (152.8 million USD) and 405.9 billion VND (19 millionUSD) in 2017 respectively.-VNA
In January exports wereworth over 1.9 billion USD, marginally up from last year, but manycompanies in the textile and garment industry have received orders to beexecuted in the first and second quarters.
The US topped thelist of importers, buying textiles and apparel worth nearly 926.7million USD, or nearly half of Vietnam's total exports. Japan and theRepublic of Korea also bought more than 100 million USD worth ofproducts.
The full year's exports to the US are expected to top 11 billion USD, a year-on-year increase of 13 percent.
Japanesefirms' increasing investment in supporting industries in Vietnam hascreated favourable conditions for the textile and garment industry,VITIC said.
Exports to Japan are expected to rise by 9 percent this year to 2.9 billion USD.
VITICsaid once a free trade agreement with the EU is wrapped up, exports oftextiles and garments to that market would begin to rise, reaching 4billion USD this year.
The Vietnam National Textile and GarmentGroup (Vinatex) plans to invest 9.4 trillion VND (441.3 million USD) by2017 in 59 textile, dyeing, garment and infrastructure projects,according to the corporation.
They include 15 fibre production projects, 18 textile and dyeing projects,18 garment projects and eight infrastructure projects.
Underthe plan, Vinatex will disburse 2.425 trillion VND (113.85 million USD)to develop these projects this year, with 805 billion VND (37.8 millionUSD) going to fibre projects, 713 billion VND (33.5 million USD) totextile anddyeing projects, 726 billion VND (34.1 million USD) togarment projects, and 181 billion VND (8.5 million USD) toinfrastructure in industrial zones for the textile and garment industry,reported the Dau tu (Vietnam Investment Review) newspaper.
Withthe investment, Vinatex expects to increase this year its productioncapacity to 6,000 tonnes of fibre, six million metres of dyed cloth, twomillion vests and blazers and four million trousers, as well as onemillion shirts and two million knitwear products.
Vinatex is currently considered to have the largest scale in productionin the textile and garment industry, with 100 member companies, andholds 15 percent of the total national textile and garment export value.
However,the member companies of Vinatex still face difficulties in investmentin sub-material production, textile and dyeing projects.
VinatexGeneral Director Le Tien Truong said that the member companies don'thave large investment capital, presenting a major challenge for localtextile and garment firms in increasing the localisation rate.
ThePhong Phu Joint Stock Corporation is a member of Vinatex that has thelargest capital amount of 700 billion VND (32.86 million USD), whileother large member companies have lesser capital, such as Viet Tien with200 billion VND (9.4 million USD), Garment 10 with 100 billion VND (4.7million USD), and Nha Be with 150 billion VND (7.05 million USD).
Thelarge garment companies could not invest in full supply chains,especially regarding the production of materials and sub-materials fortextile and garments, to receive export orders as original designmanufacturers (ODM), Truong said.
Vinatex has equitised itsoperations from January 1 this year, he added, so the group will promotemanagement, investment and market and staff development.
Theparent company will also take on the role of a direct investor toincrease production capacity, especially self-reliance in materialproduction, in a move to reduce dependence on imports, rather thanmanage State-owned capital at its member companies, as it did beforeequitisation.
The group has set a target for its parent companyto earn 900 billion VND (42.25 million USD) in revenue and 288.4 billionVND (13.54 million USD) in after-tax profit in 2015; 2.3 trillion VND(107.98 million USD) and 342.3 billion VND (16 million USD) in 2016; and3.26 trillion VND (152.8 million USD) and 405.9 billion VND (19 millionUSD) in 2017 respectively.-VNA
