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Vietnam set exports target

Vietnam: Vietnamese textile and garment industry set exports target to US$30 billion this year. The target was announced by Le…

By gta_admin , in International News , at January 18, 2017 Tags:

Vietnam: Vietnamese textile and garment industry set exports target to US$30 billion this year. The target was announced by Le Tien Truong, general director of Viet Nam National Textile and Garment Group (Vinatex). To reach this target, the industry needs strong performance by enterprises in production and business, and of the state in management by supporting the industry’s development, as well as development of infrastructure in the nation.

Further, the enterprises should improve productivity, reduce time needed to deliver cargo and strengthen distribution systems to international markets. The development of the textile and garment market at home and abroad would continue improving due to growth in the US economy and in consumption in the market. Such conditions would support the domestic textile and garment industry in reaching their target in export values this year.

However, Garment and textile enterprises have received enough orders to keep them busy through the first quarter of this year. According to Truong, this year Vietnam’s garment and textile sector will face numerous challenges, including a lack of support in taxation policies, as several important trade deals, such as the EU-Vietnam free trade agreement and the Trans-Pacific Partnership, will not become effective in 2017.

Also, competition will become more fierce, as other countries continue attracting orders thanks to their advantages in tax and exchange rates, he said, adding that the instability in the EU economy will also affect the industry. However, this year, the textile and garment industry will prepare to take advantage of business from the Vietnam-EU FTA, which comes into effect in 2018.

After the FTA is in place, Vietnam could compete with other countries exporting garments to the EU through the Generalised Scheme of Preferences (GSP), which allows developing countries to pay less or no duties on some exports to the EU. Those countries included Cambodia, Bangladesh and Myanmar.

Meanwhile, other bilateral and multilateral trade agreements will bring more opportunities in exporting textile and garment products to small and medium-size enterprises, Truong said. The industry gained strong results because enterprises focused on increasing productivity and ensuring deadlines on delivering goods. Last year was gloomy for the world apparel sector. Major importers, including the US, the EU and Japan experienced low or decreased demand for garment and textile products.

In 2016, Viet Nam’s apparel also saw lower than expected results, with $28.3 billion in exports, up 5.7 percent year on year.

 

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