18:21 | 09/06/2015 Economy- Society
(VEN)- Nghe An Province’s textile and garment export revenue was only US$3.1 million in 2010, but this dramatically grew to US$73 million in 2014. In the first quarter of this year, the province’s textile and garment export revenue reached US$13.96 million, a year on year increase of 36.8 percent, which was seen as a breakthrough in investment in and production of textiles and garments for export in the province. Textiles and garments were the province’s biggest exports. They were exported by the provincial businesses to 18 markets, mainly China, Germany, Egypt, the US, the Republic of Korea (RoK) and Japan.
The three main garment export businesses of Nghe An back in 2010 were Hoang Thi Loan Textile Garment Joint Stock Company, HALOTEXCO Garment JSC and Phu Vinh Company Limited. The garments and textiles were mainly exported to the RoK, the Philippines, Japan, the US, the Netherlands, Poland and Germany.
After Vietnam’s admission to the World Trade Organization (WTO), Vietnam’s textile and garment export quotas have been lifted along with preferential import tax rates for the US market. Massive foreign direct investment (FDI) flows have also been poured into the industry. Textile and garment enterprises in Nghe An Province in this new period had outdated machinery, low labor capacity and had not established a network of regular partners. The province’s textile and garment products had not developed brands, and their competitiveness both domestically and internationally was also poor.
Before the opportunities and challenges in trading textile and garment products and import, export activities in general, the local textile and garment industry under the support of Nghe An Province drafted a project on developing textile and garment exports for the 2011-2015 period, which was approved by the provincial people’s committee on August 19, 2011. Under this project, one of key issues was to promote garment and textile export based on exploitation of comparative and competitive advantages, contributing to promoting the local gross domestic product (GDP) growth and economic restructuring. As such, textile and garment industry still holds an important position in Nghe An’s industrial sector in a bid to capitalize on the local labor resources, generate jobs and increase export revenues.
In the coming time, Vietnam’s membership of the Trans-Pacific Partnership (TPP) is expected to bring new opportunities for Nghe An province’s textile and garment industry.
Investment waves into the local textile and garment industry by RoK and Japanese investors forced domestic and Nghe An garment enterprises to re-organize production, innovate technology and adopt advanced managerial measures to compete with foreign-invested enterprises. They also had to improve worker skills and train human resources in designing, marketing, and trading activities to shift from processing products to executing contracts themselves to increase export revenues and profits.
At present, Nghe An Province has 13 textile and garment projects owned by RoK and Japanese investors, creating jobs for nearly 10,000 laborers. Seven enterprises are directly involved in import and export activities while the remaining enterprises process garment products for export businesses or implement trading contracts of their parent companies.
In 2014, Nghe An’s textile and garment export revenue reached US$73 million, increasing by two-fold compared with the previous year. In the first quarter of 2015, the export revenue stood at US$13.96 million, a year on year increase of 36.8 percent./.
By Thanh Tu