The garment industry of Vietnam aims to reach the export target of 30 billion dollars by the end the current fiscal year. The target was announced by Le Tien Truong, the general director of Vietnam National Textile and Garment Group (Vinatex).Truong further said that the up gradation of garment and textile market at the local, as well as international market, will keep on improving, which is because of the growth in the economy of the United States of America. Expected is that this favourable situation will support the domestic textile and garment industry in meeting the export targets, this year.
While sharing his views with a Vietnamese News Agency, Truong Said that; “To reach this target, the industry needs a strong performance by enterprises and the expertise of management to support the industry’s development,” the improvement and the infrastructure will support the goal, added Truong.
Officials further added that the enterprises should improve productivity, reduce cargo delivery times and strengthen distribution systems to international markets. While talking about the Vietnamese industry in particular it was said that the garment and textile enterprises have received enough orders to keep them busy for the first quarter of this year.
On the other hand, the instability in the EU economy may also affect the garment industry in Vietnam. Notwithstanding that, the industry was optimistic about the benefits of the EU pact and Vietnamese companies were preparing to make the most of the opportunities, the official said. The trade deal with Europe comes into effect in 2018. After the FTA is in place, Vietnam could compete with other countries exporting garments to the EU through the Generalised Scheme of Preferences (GSP), which allows developing countries to pay less or no duties on some exports to the EU. Countries that enjoy these benefits include Cambodia, Bangladesh and Myanmar.
At the same time, other bilateral and multilateral trade agreements will bring more opportunities in exporting textile and garment products to small and medium-size enterprises, Truong said. Back in 2016, Vietnam’s garment industry saw a lower than expected output, with $28.3 billion in exports, up 5.7 percent year on year, Truong added.
Vinatex earned more than $2.5 billion, an increase of 5% over 2015, with a pre-tax profit of over 41 trillion dong (Bt64.3 billion) on a 5% year on year increase. Also, its employees’ average income rose 8% over the previous year, to reach 6.7 million dong a month. Last year was a challenging one for the industry worldwide. Major importers, including the US, the EU and Japan, experienced low or decreased demand for garment and textile products, Truong said.
