Vietnam’s key industries target XL goals

06:00 | 05/10/2020 EVFTA

(VEN) - According to their development strategies until 2030, with a vision to 2035, Vietnam’s garment and textile and leather and footwear sectors seek to diversify export markets, promote exports by utilizing the advantages and opportunities provided by free trade agreements, and develop the domestic market.

vietnams key industries target xl goals

The garment and textile, leather and footwear sectors play an important role in the Vietnamese economy. Export turnover of the garment and textile sector reached US$39 billion in 2019 and about US$19.25 billion in the first eight months of the year, while footwear and handbag exports reached US$21.5 billion and US$10.9 billion during the reviewed periods, respectively.

However, these sectors face many difficulties and challenges, especially as Vietnam integrates more deeply into the world economy, requiring adjusted development strategies.

Truong Van Cam, deputy chairman and secretary-general of the Vietnam Textile and Apparel Association, said new-generation free trade agreements have opened up promising opportunities for garment and textile enterprises. However, profits remain negligible because manufacturers only cut, sew and finish products but lack added value.

According to the Ministry of Industry and Trade, Vietnam is still heavily dependent on raw materials from China. For example, the garment and textile sector must import 70-80 percent of materials from China. As the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Vietnam Free Trade Agreement (EVFTA) have strict regulations for goods eligible for tax incentives, Vietnam needs to provide raw material sources to ensure sustainable development.

To overcome difficulties and challenges, the Ministry of Industry and Trade is developing strategies for Vietnam’s garment and textile, leather and footwear sectors with specific targets for each period. Accordingly, during the 2020-2025 period, garment and textile, leather and footwear sectors will strive to increase their added value by about 6-7 percent per year and reach export turnover of US$95-100 billion with export growth of 8-10 percent per year.

In the 2026-2030 period, the sectors will strive to increase the added value by about 5-8 percent per year and reach export turnover of US$120-130 billion with export growth of 4-5 percent per year. In the 2030-2035 period, Vietnam will make efforts to maintain its position as one of the world’s largest garment and textile, leather and footwear exporters.

In addition to trade and investment promotion activities, the Ministry of Industry and Trade will focus on developing new markets and encourage enterprises to diversify export products in order to develop the garment and textile, leather and footwear sectors further.

Hoang Lan