A worker operates a yarn processing line at Hoa Xa Yarn Factory in the northern province of Nam Dinh (Photo: VNA)Hanoi (VNS/VNA) – Vietnam’s textile and garment industry was likely to reach itstarget of 40 billion USD in export turnover this year despite facingdifficulties in some markets.
The statement was made by Cao Huu Hieu, managingdirector of the Vietnam National Garment and Textile Group (Vinatex) after theindustry reported export earnings of 29.3 billion USD in the first ninemonths of the year.
Hieu said the result was due to the industry's efforts toovercome difficult global economic conditions. To achievethis figure, solutions had been implemented synchronously to removedifficulties, especially input prices which had dropped sharply due to theimpacts of the trade war.
“After a quiet period, the fibre sector has started to prosper. Customersare showing more interest in it while the price has also recovered.We hope the market will correct itself over the next year and returnto the highs seen in 2016-17,” he said.
With new-generation free trade agreements (FTAs) such as the Comprehensive andProgressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnamfree trade agreement (EVFTA) which took effect this year, Vietnamesebusinesses will need to make efforts to take advantage of the preferences theyoffer.
Technology application is seen as a key factor to help Vietnam’s textile andgarment industry to promote its business and expand its markets.
According to Hieu, many Vinatex firms had invested in automatic cuttingand spreading machines to replace workers, and in 3D design. Meanwhile, yarnand dyeing were also under pressure from the fast development oftechnology.
He said in the fashion industry, creativity was very important, sothere are stages that machinery cannot replace humans. “A Vinatex survey ofabout 150 enterprises showed that employment opportunities within theindustry over the next 10 years would still be high.”
“The domestic market is expected to earn 9 billion USD this year, soit's a massive sector. Besides, top global brands havealready invested here, and Japan's Uniqlo will be arriving in2020,” Hieu said.
Under such pressure, he said the industry needed to find its own path forVietnamese fashion to reach the domestic market.
“Vinatex is focusing on Vietnamese designs with materials suitablefor Vietnamese people and the industry, ensuring quality and reasonable pricesand increasing competitiveness,” he added.
Many businesses have set up e-commerce systems deals or invested in their own onlinesales services to increase domestic market share.
Viet Tien Company has invested in a fashion design centre, while Duc GiangCorporation has focused on building and developing its own brands such as PaulDowner, HeraDG and Forever Young.
Other enterprises such as Nha Be and May 10 are also offering fashionableproducts in various styles and categories to meet diverse consumptionneeds, ensuring quality and design to follow internationaltrends.
According to economic experts, Vietnam’s accession to a series of FTAshad increased the openness of the domestic market by 200 percent.Along with efforts to improve domestic market share, authorities neededto create favourable conditions for enterprises to restructure,especially when it came to raising capital, expanding production, andimproving technology and management to compete with foreign brands./.
VNA
