17:33 | 16/07/2015 Trade
(VEN) - Although the textile and garment sector’s export growth in the early months of this year was much lower than the same period in 2014, the sector is confident of its ability to realize the US$27.5 billion annual export target.
Vietnam exported US$12.8 billion worth of textiles and garments in the first half of this year
In the first half of this year, Vietnam exported US$12.8 billion worth of textiles and garments, a rise of 10.26 percent compared with the same period in 2014 (in the first half of 2014 compared with the same period in 2013, the growth was 19 percent). The free trade agreement (FTA) signed between Vietnam and the Eurasian Economic Union (EEU) in late May created new export opportunities for the textile and garment sector.
Vietnam National Textile and Garment Group (Vinatex) General Director Le Tien Truong said Vietnam currently exported over US$300 million worth of textiles and garments to the EEU each year. The EEU has great potential but to penetrate this market, domestic businesses have to cope with big challenges. If Vietnam takes advantage of the FTA, it could export over US$1 billion worth of textiles and garments to the EEU each year.
To achieve the US$27.5 billion export value target set for this year, the textile and garment sector needs to make further efforts to seek new markets and export opportunities towards the year’s end.
Domestic distribution strategy
In April, the Vietnam Textile Fashion Trading Company Ltd. (Vinatexmart) was sold to Vingroup. Le Tien Truong said that over the last 13 years operating in the retail market, Vinatexmart had expanded its network but lacked a suitable distribution strategy. Considering Vingroup as a strategic partner with a strong retail sales network, Vinatex decided to sell Vinatexmart to Vingroup.
Truong added that the textile and garment sector was building a strategy for developing the domestic distribution network in the direction of building brands for Vietnamese textiles and garments. Vinatex Deputy Director General Hoang Ve Dung said that to meet growing consumer demand, since 2014, the sector had paid greater attention to design. Vinatex is concentrating on manufacturing uniforms for people working in restaurants, hotels, supermarkets, offices, banks, factories and enterprises. “This July, Vietnam Airlines crew members will wear new uniforms designed and manufactured by Vinatex,” Hoang Ve Dung added.
Vietnam National Textile and Garment Group General Director Le Tien Truong:
The textile and garment sector has requested the Ministry of Industry and Trade to disseminate newly signed trade agreements and create favorable conditions for textile and garment experts to deeply understand these agreements so that they can help businesses make the most of opportunities from the agreements.