Thu , Aug 08, 2022
Garment – Textile Export: Lofty Expectations for 2013

Although purchasing power weakened and key import markets like the US, EU and South Korea shrank, Vietnam’s apparel exports still rose 12 per cent to US$15.8 billion in 2012. If fibre export are added, the value reaches US$17.2 billion, representing an increase of 8.5 per cent against 2011. 2013 will be a year of lofty expectations for Vietnam’s textiles and garments.

In particular, Vietnam was estimated to spend US$7,045 million on fabric import in 2012. Major fabric suppliers for Vietnam were China, South Korea, Taiwan and Japan. The country’s imported cotton was forecast to weigh 416,000 tonnes valued at US$875 million, up 27.3 per cent in volume and 16.9 per cent in value over 2011. The Vietnamese textile and garment industry is strengthening its prestige and utilising domestic competitive supplies to enlarge the global market share.

Vietnam was estimated to export 628,000 tonnes of fibres and yarns valued at US$1,842 million in 2012, up 22.6 per cent in volume and 2.9 per cent in value against 2011. The Vietnamese fibre and yarn industry still maintained fairly good competition on the world market. Export output soared but price was much lower in 2011.

In 2013, the world demand for garments and textiles is forecast will increase slightly. Vietnam expects to maintain the export growth at 12 per cent – 15 per cent to reach US$18.8 – 19.3 billion. Thus, the garment – textile industry will complete the targets of localisation rate of over 50 per cent and export turnover of US$20 billion set for 2015 ahead of time. It expects to earn US$8.5 billion from shipments to US (up 11 per centyear on year), US$2.4 billion to Japan (up 18 per cent), US$1.5 billion to South Korea (up 15 per cent), US$2.4 billion to the EU, and US$4.2 billion to other markets.

Reportedly, more than 50 per cent of garment and textile companies have received export orders for the first quarter of 2013 and about 10 per cent, mainly large enterprises, have got orders for operations through the second and the third quarter of 2013.

In addition, foreign capital flow is searching for opportunities in the dyeing industry. A series of world-acclaimed fibre, yarn and textile companies have arrived in Vietnam to seek investment opportunities in the dyeing and material industries. In November 2012 alone, nearly 10 foreign companies proposed setting up material production joint ventures with Vietnam National Textile and Garment Group (Vinatex) and its affiliates in Vietnam. They are large fibre, yarn and textile production corporations like Texhong (China) and Toray International and Mitsui (Japan), Lenzing (Austria), and Sunrise Textile Co., Ltd. (China).According to many experts, with benefits from the Generalised System of Preferences (GSP) in the market Europe (effective on January 1, 2014), the Vietnam – Japan Economic Partnership Agreement (VJEPA) and the Trans-Pacific Partnership (TPP) negotiations, the textile – garment industry is holding a great opportunity to expand the market. This opportunity will be further promoted when we hold the initiative of domestic supplies.

Le Tien Truong, Deputy General Director of Vinatex, said, the industry has been empowered mainly by expansion investment or investment-driven growth over the past 10 years, its focus was shifted to output growth, starting from productivity improvement. “If we enhance the labour productivity by 20 per cent annually, we do not need to make extensive investments to achieve out purpose as we did previously.” With the motto “Garment – textile: Productivity-driven growth,” the garment – textile industry expects to boost up exports in 2013.

However, Vietnamese apparel – textile exporters are seeing difficulties because major importers are shifting their orders from Vietnam to Cambodia, Laos and Bangladesh in order to avoid 10 per cent import duty to save costs since these countries are entitled to the Most Favoured Nation (MFN) status with zero import duty. For this reason, the exporters must directly find new customers and restructure export markets, with greater priority given to customers in Japan, the US and South Korea while boosting fibre export to China, Turkey, the Middle East and Africa. In addition, we should provide support measures for exporters with high-valued items like high-grade suits, shirts and trousers, actively make investments for enhanced competitiveness on export markets.

To facilitate the purchase of the company's products Danatex. Our company can offer online ordering method ...
Today 8 visitors
Visitor: 000053590
Hotline: 05113.738.768
My status