Select language:

Textile growth highest in 5 years

Saturday - 21/07/2018 22:58
According to the latest statistics of the General Department of Customs, exports of textiles and garments in June reached USD 2.75 billion, up 16.6% against the previous month, raising the export value of this group in 6 months from in the beginning of 2018 reached USD 13.64 billion, up 15.7%, compared with the same period last year.
In the first two quarters of 2018, the United States remained the largest importer of textiles and apparel from Vietnam with a value of $ 6.4 billion, up 11.5% against the same period a year earlier and accounting for 46% 9% of total value of textile and garment export of the whole country; followed by the EU market worth $ 1.89 billion, up 12.2%, Japan's market value reached $ 1.7 billion, up 23.9% against a year earlier; Korean market reached $ 1.3 billion, up 25.4% ...

That shows that the key export markets such as USA, CPTPP countries, EU, South Korea, China, ASEAN ... are growing strongly with the growth rate against the same period of 2017.

At the Conference on CPTPP and EVFTA: Impacts on Vietnam Textile and Apparel Industry, Truong Van Cam, Vice President of Vietnam Textile and Apparel Association (Vitas), said that in the first six months of this year, The textile and apparel exports are estimated at $ 16.5 billion, up 16.49% over the same period last year, higher than the 10.43% growth rate of the same period of 2017.

In terms of commodities, there are 3 items that reach the export turnover of more than $ 1 billion, namely t-shirts, pants and jackets. The items of high export value, from $ 700 million up include: Skirts, children's clothing, fabrics, shorts ...

Remarkably, the situation of orders of export enterprises is quite satisfactory. Many enterprises have received orders until the end of the year. Some typical enterprises are: Tinh Loi Company Limited, Viet Tien Garment Corporation, Worldon Company Limited (Vietnam).

The Ministry of Industry and Trade said that in 2018, the textile and garment industry is forecasted to face some difficulties such as: rising input costs such as minimum wage, social insurance, electricity and water charges The The situation of raw materials and auxiliary materials fluctuates as cotton prices tend to increase slightly due to increased cotton demand in Pakistan, Bangladesh and Vietnam.

However, the textile industry has some advantages. Specifically, the Comprehensive Partnership and Trans-Pacific Partnership (CPTPP) was signed on March 8, 2018 and is expected to come into force in 2019, setting the expectation of boosting exports to six countries. Import textile and garment in CPTPP (in 2017, export textile of Vietnam to the group of over $ 950 million).

Mr. Tran Thanh Hai, Deputy Director of Import-Export Department (Ministry of Industry and Trade) said that garment in particular is in a special context. The closest opportunity is the signed CPTPP. The Vietnam - EU FTA (EVFTA) could be signed later this year.

All open more favorable market opportunities for textile export. However, if the requirements of the rules of origin can not be met, the enterprises do not take advantage of the opportunity, the FTA will become meaningless.

"The government is trying to negotiate FTAs, but the benefits are from businesses. If enterprises fail to make full use of the benefits, the FTA will become meaningless, "Hai said.

In order to export textile and garment to sustainable growth, according to Hai, the problem to solve is the logistics story. Textile and garment have large volume and value. In large volumes, the impact of logistics costs is greater.

Enterprises should also pay more attention to this issue to cut costs. For example, now shipments to the EU go 100% by sea, with only a few shipments by air. However, there are railroads going to Russia, Belarus ..., then go to the EU at a lower cost.

Source: Trân Trân- CAND

Total notes of this article: 0 in 0 rating

Click on stars to rate this article

  Reader Comments

Newer articles

Older articles

About us

We provide the leading securities investment consulting services in Vietnam. We provide a great deal of professional advice, governance and professional securities trading services to our clients in Vietnam. We combine the spirit of accountability, the insight of each featured enterprise,...

You did not use the site, Click here to remain logged. Timeout: 60 second