Illustrative image (Photo: VNA)Hanoi (VNA) - The domestic textile and garment industry is expectedto reach its export revenue target of 40 billion USD this year despite facingmany difficulties, said Vu Duc Giang, Chairman of the Vietnam Textile andApparel Association (VITAS).
To achieve this target,the industry needs export value growth of at least 11-12 percent for the restof the year, he said.
According to theassociation, growth reached only 9.1 percent in the third quarter, much lowerthan the same period in 2018. However, it was higher than other textileproducers including China, India and Bangladesh.
The association hopes textileenterprises will be able to deliver big orders to push export value up inDecember.
The most important thingis for textile and garment enterprises to search for markets, orders andalternative partners. Currently, the businesses can take advantage of the EU-VietnamFree Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreementfor Trans-Pacific Partnership (CPTPP) to promote export expansion to somemarkets in the EU as well as Canada and Australia.
Canada holds a lot ofpotential for Vietnam with import value of textiles and garments reaching morethan 13 billion USD each year, while Vietnam’s textile and apparel exports tothis market reach only about 550 million USD per year.
Vietnam does not have a free trade agreement (FTA) with Canada so the CPTPPopens the door for the Southeast Asian country’s textile and apparel products.Businesses need to seize this opportunity and seek partners in Canada.
Than Duc Viet, General Director of Garment 10 Corporation, said to achieveexport success, enterprises need to be aware of requirements on price, quality,quantity and production time. Moreover, they must also ensure productionstability.
At the same time, enterprises should cooperate with each other throughaffiliate programmes and support from the association to meet the rules oforigin stated in FTAs.
Enterprises, especially small businesses, should build a production chain tomeet the demand of large contracts in terms of quantity, quality and time ofdelivery, as well as to create a name for themselves.
In recent years, the textile and garment industry has developed strongly andexports have grown year by year, according to VITAS. However, it still facesmany challenges in production and business, such as low labour productivity,lack of high quality human resources and mainly processing products rather thanmanufacturing them.
In addition, challenges from export markets have also put pressure on them,including increasing protectionism, higher quality demands, and environment andtechnical tests.
According to association, local apparel producers are facing falling exportorders. Since mid-2019, some businesses have been able to sign export contractsfor small quantities each month. Meanwhile, in the same period last year, manylarge enterprises had export orders stacked up till the end of the year.
Cao Huu Hieu, CEO of the Vietnam Textile and Garment Group (Vinatex), said mosttextile and garment businesses did not have enough orders to keep themoperating until the end of the year.
Large businesses such as Garment 10 Corporation, Duc Giang Garment Joint StockCompany, Hoa Tho Textile Garment Joint Stock Corporation, Hanoi Textile andGarment Joint Stock Corporation (Hanosimex) had export contracts to maintainproduction until November, but only Viet Tien Garment Joint Stock Company wasgoing to be busy until the year-end.
Hieu said given the current situation, the industry would find it difficult toreach the export target of 40 billion USD this year./.
To achieve this target,the industry needs export value growth of at least 11-12 percent for the restof the year, he said.
According to theassociation, growth reached only 9.1 percent in the third quarter, much lowerthan the same period in 2018. However, it was higher than other textileproducers including China, India and Bangladesh.
The association hopes textileenterprises will be able to deliver big orders to push export value up inDecember.
The most important thingis for textile and garment enterprises to search for markets, orders andalternative partners. Currently, the businesses can take advantage of the EU-VietnamFree Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreementfor Trans-Pacific Partnership (CPTPP) to promote export expansion to somemarkets in the EU as well as Canada and Australia.
Canada holds a lot ofpotential for Vietnam with import value of textiles and garments reaching morethan 13 billion USD each year, while Vietnam’s textile and apparel exports tothis market reach only about 550 million USD per year.
Vietnam does not have a free trade agreement (FTA) with Canada so the CPTPPopens the door for the Southeast Asian country’s textile and apparel products.Businesses need to seize this opportunity and seek partners in Canada.
Than Duc Viet, General Director of Garment 10 Corporation, said to achieveexport success, enterprises need to be aware of requirements on price, quality,quantity and production time. Moreover, they must also ensure productionstability.
At the same time, enterprises should cooperate with each other throughaffiliate programmes and support from the association to meet the rules oforigin stated in FTAs.
Enterprises, especially small businesses, should build a production chain tomeet the demand of large contracts in terms of quantity, quality and time ofdelivery, as well as to create a name for themselves.
In recent years, the textile and garment industry has developed strongly andexports have grown year by year, according to VITAS. However, it still facesmany challenges in production and business, such as low labour productivity,lack of high quality human resources and mainly processing products rather thanmanufacturing them.
In addition, challenges from export markets have also put pressure on them,including increasing protectionism, higher quality demands, and environment andtechnical tests.
According to association, local apparel producers are facing falling exportorders. Since mid-2019, some businesses have been able to sign export contractsfor small quantities each month. Meanwhile, in the same period last year, manylarge enterprises had export orders stacked up till the end of the year.
Cao Huu Hieu, CEO of the Vietnam Textile and Garment Group (Vinatex), said mosttextile and garment businesses did not have enough orders to keep themoperating until the end of the year.
Large businesses such as Garment 10 Corporation, Duc Giang Garment Joint StockCompany, Hoa Tho Textile Garment Joint Stock Corporation, Hanoi Textile andGarment Joint Stock Corporation (Hanosimex) had export contracts to maintainproduction until November, but only Viet Tien Garment Joint Stock Company wasgoing to be busy until the year-end.
Hieu said given the current situation, the industry would find it difficult toreach the export target of 40 billion USD this year./.
VNA
