Textile and garment industry: Optimistic 2019 outlook

12:10 | 23/12/2018 Industry

(VEN) - Many textile and garment companies have signed production and export contacts for the first half of 2019 and are completing their 2018 orders.

textile and garment industry optimistic 2019 outlook
Many textile and garment businesses have signed orders for 2019

2018 targets exceeded

Pham Xuan Hong, Chairman of the Association of Garments, Textiles, Embroidery and Knitwear of Ho Chi Minh City (Agteck) said textile and garment exporters have experienced good business in 2018 and are working hard to accomplish 2018 orders for on-time delivery.

Dang Trieu Hoa, Chairman of the Board and General Director of the Century Synthetic Fiber Corporation (STK) said that in the first nine months of this year, his corporation’s domestic sales increased about 13 percent over the same period last year and exports grew to represent 58-60 percent of the corporation’s total revenue (compared to 56 percent in 2017). STK is expected to reach sales of more than VND2.35 trillion this year, Hoa said. Positive market changes and the increasing use of recycled yarn by world leading fashion brands have brought in a large number of orders in the third and the fourth quarter of this year, Hoa added.

A 28 Corporation representative said his corporation’s 2018 revenue is expected to top the year’s target by 10 percent and 120 percent more than that of 2017.

Tariff preferences lure

Agteck Chairman Pham Xuan Hong said many enterprises in the industry have signed contracts for the first months of 2019.

STK General Director Dang Trieu Hoa said he believes Vietnam’s textile and garment exports in general and STK’s in particular will continue to grow strongly in 2019 with Vietnam becoming a global textile and garment export center. World leading brands are pouring their orders into Vietnam to enjoy tariff preferences under trade agreements signed by Vietnam.

In addition, Vietnamese producers have become more attractive in terms of quality, price and services, which have improved considerably compared to those in China. They are also drawn by the potential to improve the textile and garment supply chain in the country due to growing capital inflows to textile, dyeing and raw material industries.

Nguyen Van Can from the 28 Corporation said many subsidiaries of the corporation have signed orders for the first half of 2019 or for the whole year.

Businesses have adopted various strategies to increase exports and domestic sales in 2019. Pham Van Trinh, General Director of the Phong Phu Corporation said his company has invested billions of dong in opening two showrooms over more than 1,200 square meters to display high-grade cotton towels and jeans. STK General Director Dang Trieu Hoa said his company expects to sell more in the domestic market to contribute to developing the textile and garment supply chain in Vietnam.

World leading brands are pouring their orders into Vietnam to enjoy tariff preferences under trade agreements signed

by Vietnam.

Long Duong