During the 2017-2020 period, Vinatex will focus on investing in technology, Truong said, noting that the world economy is likely to grow by 2-3% this year, while the world demand for garment and textiles may recover slightly, at about 0.5%.
The US may adjust up import taxes on commodities from China, including garment and textiles, which can be a positive sign for Vietnam’s garment and textile export by expanding its market share in the US.
However, the Vietnamese garment sector is facing tough competition in attracting orders as domestic businesses are unable to provide package services and face difficulties in meeting importers’ shipping requirements.
The country’s major competitors such as China, India, Bangladesh, and Indonesia continue attracting a bulk of orders thanks to their preferential policies on tax and exchange rate, while the European Union-Vietnam free trade agreement (EVFTA) and Trans-Pacific Partnership (TPP), which are hoped to help with Vietnam’s exports, have yet to become effective in 2017.
Other problems for the sector include rising input costs and falling selling prices, plus the lack of high-quality human resources who can operate modern machines, especially in weaving and dyeing phases.
Therefore, the Vinatex will spare no effort to improve management capacity and administration in a modern and professional manner, while continuing to expand markets in East Europe, and optimise advantages offered by valid FTAs.
In 2017, Vietnam’s textile-garment sector aims for a growth rate of 7-8%, raking in US$30 billion in export turnover.