Tuesday, 19 Dec 2017

Garment and textile industry projected 2-digit growth in 2018

Updated at Wednesday, 06 Dec 2017, 17:21
The Hanoitimes - The garment and textile industry will continue to prosper next year, fetching roughly US$34 billion from exports, the Vietnam Textile and Apparel Association (Vitas) forecast.
At a meeting on December 4, Truong Van Cam, Vitas deputy president, said that the industry was on right track to meet this year’s export target of US$31 billion, up 10.23 percent over the previous year.
Cam said that early 2017 was challenging for the sector with orders from Vietnam’s partner countries fell sharply, given the uncertainty of the Trans-Pacific Partnership.
In response, domestic garment and textile enterprises have increased their investment in improved production systems, designed more competitive products, and sought new markets.
As a result, by the end of the third quarter the sector had earned nearly US$23 billion from exports. Fourth quarter revenue is projected to reach US$8 billion, of which $5.25 billion will come from the last two months of this year, raising the total export turnover to US$31 billion, up 10 percent over last year.
Vietnam will rank 26th in the world for textile and garment export turnover if gaining US$31 billion this year.
Vietnam will rank 26th in the world for textile and garment export turnover if gaining
US$31 billion this year.
If this target is reached, Vietnam will rank 26th in the world for textile and garment export turnover.
This achievement is attributed to businesses’ careful preparations and the government’s policy to support the development of auxiliary industries.
Next year is also expected to be a thriving year for the industry with 2-digit growth.
To boost exports, Cam said that the industry has been striving to apply modern technologies, especially industry 4.0 technologies in production to improve efficiency, productivity, diversify products and enhance product quality for higher added value.
Vitas has also proposed that the Government review its policies of wages, insurances, administrative procedures and checks for import/export for amendments to remove the bottlenecks for garment and textile companies.
However, it has also urged domestic firms to improve the competitiveness as there will be some challenges faced the industry in 2018.
Nguyen Xuan Duong, President of the Hưng Yen Garment Corporation, said: “In 2018, there might be many orders and a great volume of products but prices will drop. It’s a common trend in all markets and is causing headaches for Vietnamese garment and textile enterprises because all types of input costs including workers’ salaries are on the rise. Increasing labor productivity through improving technology, equipment, and business management is considered the only solution.”
Pham Tat Thang, a senior researcher with the Ministry of Industry and Trade, said Vietnam's textile and garment import markets are experiencing unforeseen fluctuations caused by trade protectionism.                      
“Major markets are closing and this affects Vietnam. With competitors like Pakistan and China thriving, Vietnam must improve its competitiveness. Domestic companies should invest more in technology to catch up with the tendency,” Thang noted.
The industry’s competition is forecast to become fiercer as breakthroughs in science, technology, and IT create rapid changes in production and supply models.
Vu Duc Giang, Vitas Chairman, called for combining production, development of technology, branding, promotion, and mastering of advanced technologies, especially made-in-Vietnam technologies.
“We have asked the government to prevent the penetration of imitation brands into Vietnam,” Giang said, adding that Vitas has been developing many support policies to help the industry and companies in the field gain sustainable development.
​Thu Ha
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