Textile and garment exports expected to exceed target

11:32 | 20/12/2017 Trade

(VEN) - Textile and garment exports are expected to reach US$8 billion in the fourth quarter of this year, 11 percent higher than the same period last year, taking the total to US$31 billion in 2017, exceeding the US$29.5-billion yearly target.

textile and garment exports expected to exceed target
Textile and garment enterprises should invest in advanced technology to improve productivity and quality

Pham Minh Huong, Managing Director of the Vietnam National Textile and Garment Group (VINATEX), said the US decision to pull out of the Trans-Pacific Partnership Agreement (TPP) and the UK’s divorce from the European Union have had a negative impact on the textile and garment industry. In 2016 and the first half of 2017, a number of sector enterprises received less orders and the prospects for textile and garment exports were therefore gloomy.

As soon as the second half of 2017 began, sector enterprises quickly adjusted and improved their production, focusing on developing strong products and meeting market demand, which helped exports improve significantly. Sector businesses exported products worth almost US$23 billion in the first nine months of this year, up 9.8 percent from the same time last year, and are expected to earn export revenues of US$8 billion in the last quarter of this year, taking the total to US$31 billion in 2017, up 10 percent from 2016. Sales to the main markets of the US, Japan, and the Republic of Korea (RoK) have grown.

Pham Xuan Hong, Chairman of the Ho Chi Minh City Association of Garment, Textile, Embroidery and Knitting (AGTEK), predicted that the textile and garment sector would exceed its 2017 US$29.5-billion export target.

The consumption trend in foreign textile and garment markets keeps changing. This requires domestic textile and garment enterprises to accelerate production, shorten delivery time, and diversify material supply sources and products. Strong textile and garment producing countries, including Cambodia, Myanmar, and Bangladesh, have adopted many preferential policies to attract orders, placing heavy pressure on the Vietnamese textile and garment industry.

To maintain and improve the Vietnamese textile and garment industry’s position in the global supply chain, sector enterprises need to invest in advanced technologies to increase productivity, improve quality and create environmentally friendly products, while at the same time finding appropriate sources of materials. They also need to study and apply efficient production methods to add value to their products and services instead of outsourcing maintenance.

The textile and garment industry is expected to reach export revenues of about US$31 billion in 2017, US$1.5 billion higher than the target. This potential achievement is attributed to enterprises’ efforts and timely government assistance.

Viet Nga