A production line of Hue Textile and Garment JSC in the central province of Thua Thien-Hue. (Photo: VNA)Hanoi (VNS/VNA) - Enterprises in the garment and fishery sectors have setdevelopment plans to take full advantage of free trade agreements such as theCPTPP and EVFTA.
Thetextile and garment industry aims to achieve export value growth at 8-10 percentto a total of over 40 billion VND and an industrial production value growth at5 percent, according to the Vietnam Textile and Garment Corporation (Vinatex).
Firmswill target markets under the Comprehensiveand Progressive Agreement for Trans-Pacific Partnership (CPTPP) withexport turnover of over 5.3 billion USD. Of which, export value to Japan ismore than 4 billion USD while the export value to Canada and Australia marketsis expected to double to 1 billion USD each, said Le Tien Truong, Vinatexgeneral director.
Forthe EU market, if the European Union-Vietnam Free Trade Agreement (EVFTA) comesinto effect this year, it will help increase total export revenue by 4 billionUSD, contributing to raising total export value to over 40 billion USD, Truongsaid.
Vinatexexpects growth of 5-7 percent year-on-year in its export value this year and 12percent in profit, according to Truong. Those results will help realise itstarget of being one of the top 10 biggest listed companies on Vietnam’s stockmarket.
Besidesadvantages from those FTAs, Cao Huu Hieu, Vinatex managing director, said thisyear will see more challenges than in 2018, including forecasted reduction inglobal economic growth, unexpected developments from the US-China trade war andBrexit in Europe. Those will lead to risks in exchange rates and imports of rawmaterials for the textile and garment sector.
Domesticfactors are also expected to have an impact on the production activities oftextile enterprises, such as the possibility of increasing minimum wages orelectricity prices, thereby increasing input costs, according to Hieu.
Asone of Vinatex’s members, in 2019, Viet Tien Garment Corporation aims tocontinue expanding markets and customer base as well as improving quality andexport value. Its target is 1 billion USD in export value in 2020 with anannual average growth rate of 10 percent, said Bui Van Tien, Viet TienGarment’s general director.
Forthe Garment 10 Corporation, Deputy General Director Than Duc Viet said thecompany has set a target of 3.2 trillion VND in total revenue this year and 70billion VND in profit. It expects to pay dividends to its shareholders at aratio of 15 percent.
Othertextile and garment manufacturing enterprises such as Century Synthetic Fiber Corporation (STK),Thanh Cong Textile Garment Investment Trading Joint Stock Company (TCM) and PhongPhu Group (PPH), have also planned to increase investment in production thisyear, reported tinnhanhchungkhoan.vn.
STKsaid they will promote the issuance of 10.8 million shares in early 2019 tomobilise more than 66 billion VND of investment capital for the Trang Bang 5project to increase capacity of DTY (DrawnTexturised Yarn) and polyester chip for production of recycledyarn.
Asplanned, the recycled fiber segment will contribute 20 percent to this year’srevenue, higher than 14 percent in 2018. This figure will surge to 30 percentin 2020.
Companiesin the domestic fishery industry have also sped up investment and applied manytechnological solutions to ensure the quantity and quality of raw materialsunder commitments of those FTAs.
TôThi Tuong Lan, deputy general secretary of the Vietnam Seafood Exporters andProducers (VASEP), said the fishery industry strives to reach 10 billion USD inexport value this year, an increase of 11 percent year on year. Of which, theexport value will be 4 billion USD for shrimp, 2.4 billion USD for tra fish and 3.3billion USD for other kinds of seafood.
LeVan Quang, chairman of Minh Phu Seafood Corporation (MPC)’s board of directors,said in 2019, MPC plans to gain growth of 15 percent to reach an output 77,400tonnes of shrimp and an export value to 850 million USD.
Thisyear’s pre-tax profit is more than 2.3 trillion VND, higher than 1.2 trillionVND in 2018. The company plans to carry out merger and acquisition (M&A) offactories to increase capacity to meet growing demand.
TranVan Linh, chairman of the Da Nang-based Thuan Phuoc Seafood and Trading JointStock Company’s board of directors, said his company is planning to expandinvestment in processing plants to expand production and exports this year.-VNS/VNA
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