09:29 | 17/07/2017 Companies
(VEN) - Minister Mai Tien Dung, head of the Government Office, recently led a working group on behalf of the prime minister to check how the Vietnam National Textile and Garment Group (Vinatex) was carrying out its assigned tasks. He asked Vinatex to strive for US$3 billion in export value this year, nine percent higher than the initial projection for 2017.
|Vietnam exported US$14.2 billion worth of textiles and garments in the first half of this year - Photo: Can Dung|
In the first half of 2017, the entire textile and garment export value reached US$14.2 billion, 10 percent higher compared with the same period last year. This result was encouraging in the context of declining imports by major markets, such as the US, down one percent, the EU, down two percent, and Japan, down more than two percent. Nonetheless, Vietnamese exports to these markets kept growing. For example, exports to the US reached US$6 billion, up nine percent; to the EU, US$2.3 billion, up eight percent; to Japan, US$1.5 billion, up 12 percent; and to South Korea, US$1.2 billion, up 18 percent.
Vinatex contributed more than US$1.22 billion to the export value of Vietnamese textiles and garments in the first half of this year, up 10.7 percent compared with the same period in 2016. Minister Dung said Vinatex had affirmed its role as a leading economic group and the core of the textile and garment sector.
Earlier this year, Vinatex expected to achieve annual export value of US$2.78 billion, a rise of 11.4 percent compared with 2016. However, to realize the 6.7 percent gross domestic product (GDP) growth target set for this year, Minister Dung conveyed Prime Minister Nguyen Xuan Phuc’s request for Vinatex to strive to achieve annual export value of US$3 billion, up 20.4 percent compared with 2016 and nine percent compared with the initial projection.
To achieve the new target and promote its sustainable development, Vinatex was assigned six tasks:
- Promote production and exports.
- Accelerate effective implementation of projects with total investment of more than VND5 trillion. Vinatex is investing in 19 yarn projects, 17 textile projects, and six repair projects.
- Accelerate the equitization (partial privatization) of textile and garment companies.
- Domestic garment companies need to create their own products rather than provide outsourcing for foreign firms, in order to increase actual export earnings.
- Access and apply modern technologies in management, manufacturing and business administration.
- Promote internal administrative reforms to streamline the sector’s organizational structure and increase workers’ income.
According to Minister Dung, the prime minister wants domestic garment companies to operate as original design manufacturers (ODMs) and original brand manufacturers (OBMs) to create higher added value.
Vinatex, for its part, has asked the government to create a master plan for labor-intensive sectors until 2035, with a vision towards 2050, and provide guidance to develop support industries, encourage domestic and foreign investment in the manufacture of major materials for the textile, garment, leather and footwear sectors. The group also expects appropriate state policies to facilitate business access to loans, especially for small and medium enterprises, and prevent illegal imports.