2013 a ripe year for garment sector

The sector raked in more than $20 billion, rising 18 per cent on-year..

Of this, textile, garment, fibre and yarn exports brought in $19.7 billion, up 18 per cent; materials and accessories reached $700 million.

These buoyant figures have put the textile and garment sector among the country’s highest export earners.

The sector also saw sharp rises in key export markets including the US, EU, Japan, Korea, and ASEAN member countries.

An example of Vietnam’s rising competitiveness is that while US garment imports only rose by 3 per cent, Vietnam’s exports to the country jumped 13 per cent.

Last year, textile and garment exports to the US surpassed $8 billion, 45 per cent of the sector’s total export value.

Deputy chairman of the Vietnam Textile and Apparel Association Le Tien Truong said the achievements showed the sector had weathered the storm of economic difficulties by taking proper steps to boost competitiveness, diversify markets and deepen its reach into key markets.

“Solid forecasting on purchasing capacity and consumer trends this year will play a crucial role in organising production, satisfying customers, and supplying products in a timely manner to increase the appeal of made-in-Vietnam textiles and garments to global customers,” said Truong.

Truong said the sector’s exceptional growth in 2013 was greatly supported by firms’ expansion plans to boost production amid difficult market conditions.

In one example, last year Hue Textile Garment Joint Stock Company (Huegatex) posted 20 per cent revenue growth against 2012, reaching VND1.4 trillion ($66.6 million) and export values of $66 million, up 10 per cent on-year. It achieved profits of VND35 billion ($1.6 million)

According to deputy general director Ho Van Dien, despite the unstable market and rising input costs, Huegatex invested VND50 billion ($2.3 million) into procuring new equipment to diversify their product lines and increase production to tap opportunities of the Trans-Pacific Partnership, due to be signed this year.

Another firm, Hanoi Textile Garment Joint Stock Company inaugurated its Dong Van Fibre Plant, based in northern Ha Nam, with a total investment of VND420 billion ($20 million). The plant boasts 30,000 spindles.

Launched in April, by the end of last year the plant had exported 100 tonnes of fibre, making a remarkable contribution to the corporation’s total revenue of VND1.9 trillion ($90.4 million).