08:05 | 04/05/2015 Trade
(VEN) - The textile and garment sector had recorded an export surplus of more than US$2.6 billion in the first quarter of this year providing a good basis for the sector to realize its production and export targets in the subsequent months.
Export surplus of US$2.663 billion
According to the Vietnam Textile and Apparel Association (Vitas), the textile and garment sector exported US$5.625 billion worth of goods in the first quarter of this year, an 8.01 percent increase from a year ago. Fabric and garments still accounted for a majority of total exports contributing US$4.759 billion. Other material exports such as fiber, non-woven fabric and textile and garment materials reached US$575 million, US$119 million and US$172 million, respectively.
The US, the EU, Japan and the Republic of Korea remained Vietnam’s major importers with values of US$2.47 billion, US$1.085 billion, US$858 million and US$750 million, respectively.
Textile and garment material imports were also favorable during this period as a result of the decreased prices of several kinds of materials in the global market. Domestic businesses had imported 271,000 tonnes of cotton worth US$345 million in the first quarter of this year, a 17.5 percent increase in volume and a 4.6 percent decrease in value from a year ago. The price of imported cotton also dropped by 18.7 percent to US$1.59 million per tonne during this period. The price of imported cotton currently remains low providing favorable conditions for businesses to prepare materials for production and export.
Similarly, the average price of imported fiber reduced slightly by 5.5 percent to US$1.978 million per tonne. The price of several kinds of fabric continued to fall to a low level in the beginning of March.
Also according to Vitas, total textile and garment material imports reached US$3.263 billion in the first quarter of this year leading to an export surplus of US$2.663 billion.
Along with favorable production and exports, the textile and garment sector had welcomed a large number of new investment projects while at the same time launching an array of major projects.
On March 31 the Song Hong Garment Joint Stock Company began work on construction of its 60,000sq.m Song Hong-Nghia Hung production facility in Nam Dinh Province including four factories valued at VND350 billion. The project is slated for operation this coming October creating 2,000 jobs.
Prior to that, the Vietnam National Textile and Garment Group (Vinatex) broke ground for construction of a fiber-textile-dyeing-garment complex on 10.4ha of the Huong An 1 Industrial Zone in Que Son District, Quang Nam Province, at a total cost of VND1.2 trillion. After the complex becomes operational by 2017, it would generate VND2 trillion in revenue and US$40 million in exports annually in the first years while creating more than 2,000 jobs.
Also in the first quarter, several large-scale textile and garment investment projects received licenses such as British Virgin Islands’ Worldon Vietnam Co., Ltd’s US$300-million project to make high-grade garments in Ho Chi Minh City, and Hong Kong-China’s Regina Miracle International Vietnam Co., Ltd.’s Hai Phong-based project to increase its investment capital by US$90 million in order to produce women’s underwear.
The textile and garment sector saw a good start in the first quarter of this year, with production, exports and investment posting encouraging results. The Ministry of Industry and Trade said that deals were stable and that the demand in import markets was on the rise, making it possible for the sector to further expand production, increase exports and realize its targets./.