08:40 | 18/06/2018 Trade
(VEN) - Yarns and fibers significantly contribute to the export value of the Vietnamese textile and garment sector. Yarn and fiber exports are forecast to reach about US$3.9 billion in 2018, compared with US$3.59 billion in 2017.
Volume and value growth
According to the Vietnam Textile and Apparel Association (VITAS), in the first quarter of 2018, Vietnam exported 337,000 tonnes of yarns and fibers worth US$914 million, up 14.2 percent in volume and 17.3 percent in value compared with the same period last year. VITAS forecast yarn and fiber exports would reach about US$3.9 billion by year’s end.
VITAS Deputy Secretary General Nguyen Thi Tuyet Mai said yarn and fiber exports performed well in the early months of 2018, especially to the US, the Republic of Korea (RoK) and India. Two thirds of yarn produced in Vietnam is for export now.
As a leading yarn and fiber exporter, the Century Synthetic Fiber Corporation (STK) has recorded high export growth in the past two years. In the first four months of this year, the corporation exported nearly 19.28 tonnes of fibers, a rise of 15.7 percent compared with the same period in 2017. Dang Trieu Hoa, Chairman of the Board and General Director of the corporation, said major STK export markets include Japan, accounting for 17 percent of total export value; Thailand, 15.6 percent; the RoK, six percent; Chinese Taipei, five percent; and Pakistan, three percent. On-site exports, or domestic sales with payment in foreign currency, contribute 9.1 percent to the export value.
STK is also promoting the export of fibers made from recycled materials to new markets, such as Indonesia, the Czech Republic and Mexico. The corporation is building a new factory to raise the polyester drawn textured yarn (DTY) manufacturing capacity by 3,300 tonnes, in an effort to increase its total manufacturing capacity to 63,300 tonnes in the first quarter of next year. The new factory will consist of a waste yarn recycling line to create resins for internal use, which is expected to contribute to enhancing STK’s efficiency.
Taking advantage of FTAs
Vietnam Cotton and Spinning Association Secretary General Nguyen Binh An said that prior to 2000, the domestic fiber sector had only one million spindles, but since then, fiber production has been expanded to 3.7 million spindles in 2007 and seven million spindles at present.
Nguyen Thi Tuyet Mai believes the fiber sector can take advantage of new-generation free trade agreements (FTAs) to develop further. Under the Republic of Korea-Vietnam Free Trade Agreement (KVFTA) and the Japan-Vietnam Economic Partnership Agreement (JVEPA), import taxes applied to Vietnamese fiber have been reduced to zero percent. Vietnam is seen as an ideal destination for foreign-invested spinning projects. The Republic of Korea, China and Hong Kong (China) are leading investors of spinning factories in Vietnam. Japan also outsources yarn products to Vietnam.
In 2017, Vietnam exported 700,000 tonnes of fiber and yarn to China.
Experts say many foreign enterprises have invested in Vietnam’s garment and textile industry to exploit opportunities
presented by the recently signed Comprehensive and Progressive Agreement for Trans-Pacific Partnership
Minh Long & Mai Ca