Garment export turnover target of US$39 billion reachable: Official
The target of Vietnam earning US$39 billion from garment and textile exports in 2021 is perfectly feasible, Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (VITAS), has said.
Talking to the Newspaper of Industry and Trade, Giang attributed his optimism to the shifting of major orders from other countries to Vietnam, the recovery of the US market - one of Vietnam’s largest, and the activeness of Vietnamese businesses in applying technologies and taking advantage of opportunities brought about by new-generation free trade agreements (FTAs).
Vietnam’s garment and textile exports were valued at nearly US$9 billion in the first quarter of this year, up 6% year-on-year.
The figure, he said, shows that consumption is bouncing back, which positively affects export activities.
Garment and textile enterprises have been adaptive to market fluctuations through measures to diversify products and markets and invest in automated technologies and equipment.
New-generation FTAs have also added to their advantages. The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), for example, has made Vietnamese garment and textile products available in selective markets such as Canada, New Zealand, and Australia, Giang said.
However, he also pointed to several challenges facing the sector, including a shortage of materials and workers and high logistics costs, especially the cost of leasing empty containers rising more than five-fold compared to last year.
A lack of capital at small and medium-sized enterprises (SMEs) for investing in high technology and an imbalance in the production structure are also challenges to the sector, he added.
