Textile exports to hit US$28.5b
Vietnam’s textile and garment exports this year are estimated to reach US$28.5 billion, meeting roughly 92% of the set plan due to market difficulties, the Vietnam Textile and Apparel Association (Vitas) reports.
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Exports to the US this year are also estimated at $11.4 billion, up 4% against last year.
The EU, Japan, India, Brazil, Russia and Canada were also large importers of Vietnam’s textile and garments in 2016, the association reported.
The association attributed the low export turnover to a lack of export orders in 2016 due to fierce competition from foreign textile and garment producers, while global demands declined.
Hoang Ve Dung, chairman of the Duc Giang Garment and Textile Corporation, said obtaining orders had become more complicated, demanding higher quality and moving forward delivery deadlines.
Nguyen Xuan Duong, chairman of the Hung Yen Garment Joint Stock Corporation, said that importers asked his company to lower selling prices by 18-20%, and even 30%. However, several still found partners who were less expensive in other countries.
Increasing production costs, limited orders and pressure by exporters to reduce selling prices have placed a burden on the corporation, Duong said.
Experts said that the textile and garment sector would continue facing challenges in 2017 due to fierce competition by other major exporters – including China, India, Bangladesh and Pakistan –while global demand is forecast to slow down.
Le Tien Truong, General Director of the National Garment and Textile Group (Vinatex), said textile and garment exports to the US and the EU will also see negative impacts, as consequences of Brexit and US President-elect Donald Trump, who opposes the TPP trade pact.
Therefore, the sector anticipates an export growth rate of just 5-7% next year, if no appropriate policies are enacted, Truong said.
Vitas chairman Vu Duc Giang said that it made several proposals to the Ministry of Industry and Trade (MoIT) to support local industry, including strengthening management of both domestic and foreign investment projects in the industry, reviewing policies on minimum wage increases and working hours.
The association also asked for adjustments to the sector’s development and assistance in human resources training.
In addition, Vitas proposed that the MoIT review and revise legal documents causing difficulties for garment and textile businesses.
