11:33 | 29/05/2015 Trade
(VEN) - The Vietnamese garment and textile sector with the participation of more than 4,000 businesses and revenues of about US$20 billion per year has experienced rapid growth in recent years, becoming one of the major economic sectors. The sector’s products have been available in 180 countries and territories in the world.
According to the Vietnam Textile and Apparel Association (VITAS), together with China, India, Turkey and Bangladesh, Vietnam has become one of the leading garment and textile exporters with total export turnover of more than US$22 billion in 2013 and US$24.5 billion in 2014. The sector is also making greater efforts to reach export turnover of US$28.5 billion this year.
The US is the biggest market for Vietnamese garment and textile products, while the EU ranks second. According to the VITAS, the EU-Vietnam Free Trade Agreement (EVFTA) due to be signed would create great development opportunities for this sector.
The garment and textile sector will also benefit by the ASEAN-China Free Trade Agreement (ACFTA) and other free trade agreements between Vietnam and Australia, New Zealand, India, Japan and the Republic of Korea, especially the Trans-Pacific Partnership (TPP) Agreement. Garment and textile exports have recorded a significant growth in major markets in recent years and these figures will be higher in the coming years thanks to such free trade agreements.
The sector is also focusing on specialization and modernization to increase added value for export products and actively overcoming difficulties for businesses in seeking raw materials.
Towards sustainable development
Huntsman Corporation’s Textile Effects Division President Paul G. Hulme said that the Vietnamese garment and textile sector has currently contributed about 20 percent to the gross domestic product (GDP) and is expected to reach around US$40 billion in revenues by 2020. Therefore, demands on chemical dyes are on a rise.
However garment and textile businesses have to face challenges in terms of competitiveness and environment. According to the VITAS, Vietnam needed 8.2 billion meters of fabrics to produce garment and textile products in 2014, while domestic production only provided 1.7 billion meters. Therefore, many fabric production projects have been deployed and its development has posed challenges in terms of water and air pollution.
The Huntsman Corporation has actively supported Vietnam via the productivity improvement program (PIP). The program has helped the Panko Vina save water and energy, optimize and standardize operational methods in order to reach maximum benefits from the advanced systems and improve productivity and product quality.
Chuck Hirsch, Vice President, Sales and Technical Resources of Huntsman Textile Effects said that the corporation will make greater efforts to provide overall solutions for the Vietnamese garment and textile sector in order to ensure sustainable development./.
By Thanh Thanh