Viet Nam to boost textile and garment exports

Workers pack the textile products. - Photo gov.vn

This is because production costs, including oil and fibre prices, have dropped recently, said Le Tien Truong, General Director of Vietnam National Textile and Garment Group (Vinatex).

Viet Nam also intends to step up its textile and garment exports by 13 per cent to $11 billion in the United States, by 17.6 per cent to $4 billion this year in the European Union (EU) and by 9 per cent to $2.9 billion in Japan this year, he said.

According to the General Customs Department, Viet Nam's export-import turnover touched US$27.17 billion, an increase of 1 per cent from December, and 25.5 per cent from January 2014.

Of that, textile and garment exports rose by 2.1 per cent to $1.9 billion, ranked behind cell phone and spare part exports, which drove up the country's exports by $2.4 billion, an increase of 41 per cent over last January.

The General Customs Department also reported that the United States is still the largest market for Viet Nam's textile and garment products, with an export value of $926.6 million last month, a decrease of 3 per cent over the same period last year.

However, Vietnamese producers saw an increase of 6 per cent to $242 million in textile and garment exports to Japan, compared with the same period last year.

The General Director of Vinatex cautioned that Vietnamese producers will encounter some problems this year.

He said Viet Nam had gained considerable market share in major markets, including the United States, EU and Japan last year, due to which its competitors will also ramp up competition to regain market share this year.

Viet Nam achieved a growth rate of 12.6 per cent in the United States last year, while other major competitors, including China and India, could only achieve a growth rate of below 1 per cent and 6 per cent, respectively.

In Japan, Viet Nam boost its market share to 6.6 per cent in 2014, up 0.6 per cent from 2013, while the biggest exporter to this market, China, cut its share from 70 per cent to 67.2 per cent, Truong stated.

He pointed out that Vietnamese producers also improved their production facilities. However, it will take a long time for these facilities to start functioning properly.

Viet Nam has signed several free trade agreements with some countries and regions, Truong said. But it will take a year and a half for them to be approved.

Truong added that these agreements will help Vietnamese producers create partnerships with their potential customers, till the Trans-Pacific Partnership becomes effective.