10:21 | 02/02/2018 Trade
(VEN) - In 2017, despite numerous difficulties and challenges, the textile and garment sector achieved an annual export growth of 10.23 percent, with value reaching more than US$31 billion.
|Vietnam exported more than US$31 billion worth of textiles and garments in 2017 - Photo: Can Dung|
Exceeding annual target
According to Le Tien Truong, General Director of the Vietnam National Textile and Garment Group (Vinatex), the global aggregate demand for textiles and garments decreased by 0.85 percent in 2017 compared with 2016, with imports by the US down 0.2 percent, and imports by the EU down 0.3 percent. Due to an interruption in negotiations on the Trans-Pacific Partnership (TPP), textile and garment exports faced many difficulties in the early months of the year.
Despite these challenges, the textile and garment sector exceeded its annual export target (US$30 billion), achieving US$31 billion in value, 10.23 percent higher compared with 2016.
This was a significant result in the context of declines or relatively small increases in textile and garment exports by major manufacturers, such as China (down 1.2 percent), Turkey and Indonesia (down four percent), Bangladesh (down 1.32 percent), India (up four percent), Pakistan and Cambodia (up three to four percent). Notably, the Republic of Korea (RoK) moved up to the fourth position with import value reaching US$2.7 billion. This was a good signal as the RoK is a major fashion hub through which Vietnamese textiles and garments can enter other markets. Meanwhile, exports to China reached US$3.2 billion, equal to exports to Japan. Not only traditional products, but those with high added value, such as fabrics, fibers, geotechnical fabrics and textile, garment materials, also grew in export value.
Ambitious 2018 goal
“The textile and garment sector is striving to achieve export value of US$34 billion in 2018, a growth of more than 10 percent compared with 2017. This is an ambitious target,” Le Tien Truong said.
Truong predicted that the textile and garment sector would face fierce competition in 2018. Although the global gross domestic product is forecast to grow steadily in 2018, the global aggregate demand for textiles and garments is expected to increase by a mere 1-2 percent or even remain unchanged compared with 2017. Meanwhile, other textile and garment exporting countries are taking action to maintain and increase their market shares. Therefore, the entire textile and garment sector should make great efforts to achieve its export growth target.
Vietnam currently ranks high among textile and garment manufacturers and exporters worldwide. Major importers consider Vietnam a large supply hub, Truong added.
Vietnamese textile and garment companies have concentrated on manufacturing complicated products. For example, Vietnam has become the world’s largest suit manufacturer. Domestic companies have shifted from providing outsourcing services for foreign firms to operating as original design manufacturers (ODMs) to sell their products free-on-board (FOB).
Currently, 30-35 percent of domestic textile and garment companies provide only outsourcing services for foreign firms; FOB sales account for 55-60 percent of the total; and the ODM rate has reached nearly 10 percent.
KIM LIEN & VIET NGA