Multidimensional impact on textile industry

(Baonghean) - In the first 6 months of 2017, 12/15 textile and garment enterprises in Nghe An reported a growth of 113.2% compared to the same period in 2016. Export turnover is estimated at over 74 million USD, with an output of 11,406,442 tons of various types of fibers and yarns. This is a sector that has a positive impact on production and job creation in the province, because according to statistics, textile and garment units create jobs for over 15,000 workers.

According to statistics from the Department of Industry and Trade, in the first 6 months of 2017, export turnover in Nghe An province is estimated to reach nearly 453 million USD, an increase of nearly 26% over the same period in 2016; of which exported goods reached 307.9 million USD, an increase of 11.5%, accounting for 65.5% of total export turnover.

Specifically, the agriculture - forestry - fishery group reached 69 million USD, up 241.6% over the same period and accounted for 22.6% of total export turnover of goods; the fuel and mineral group reached 33 million USD, up nearly 35% over the same period and accounted for 10.7% of total export turnover of goods...

The textile and garment sector alone reached 74 million USD, accounting for over 24% of the province's total export turnover. Leading the textile and garment enterprises with high export volume and value in the first 6 months of 2017 are Prex Vinh Company Limited (over 26.2 million USD); Minh Anh - Kim Lien Garment Joint Stock Company (over 13.3 million USD); Hoang Thi Loan Textile and Garment Joint Stock Company (over 12.3 million USD); Nam Sung VINA Company Limited (over 10.6 million USD)...

To obtain the above valuable export orders, textile and garment enterprises have made efforts to innovate technology and equipment, improve design capacity, meet order requirements from partners and actively expand the market.

Activities at Vinatex Hoang Mai Textile Factory. Photo: Nguyen Son

The good news is that in the process of applying mechanisms to reduce and eventually eliminate tariffs according to the roadmap within the framework of AFTA (ASEAN Free Trade Area), textile and garment enterprises in the province have shown initiative.

Representatives of some enterprises in this field said that ASEAN countries basically have many textile and garment enterprises from Asian and European countries investing in modern production lines to process for domestic consumption and take advantage of cheap labor to “re-export” products. Therefore, there is no other way, textile and garment enterprises in Vietnam in general and in Nghe An province in particular must increase their search for markets outside ASEAN.

Mr. Nguyen To Canh - General Director of Hoang Thi Loan Textile Joint Stock Company shared: “Joining AFTA, textile and garment enterprises have to compete fiercely with many partners. Even within the Vietnam Textile and Garment Group (Vinatex), member units have to face competitive pressure with each other, not to mention competing fiercely with some FDI enterprises or large potential units.

Therefore, in addition to traditional markets such as China, Taiwan, Egypt, Malaysia, Thailand, Korea... we must focus on developing new markets, seeking to expand markets to other countries such as Peru, Sudan, the United States, Turkey...

Yarn production line at Hoang Thi Loan Textile Joint Stock Company. Photo: An Vinh

Data for the first 6 months of 2017 shows that most textile and garment enterprises have a fairly high export value, compared to the same period in 2016 by 113.2%. Not to mention some units reporting export results by quantity of goods without converting to value, or like Vinatex Hoang Mai Garment Factory exporting goods to Japan and some countries through the corporation's partners without including them in the reported items in Nghe An.

To ensure growth, in addition to taking care of the domestic market and maintaining traditional customers, textile and garment enterprises are stepping up their search and expanding their markets to the Middle East, America, and Africa. That is how many enterprises have shifted their focus away from the Chinese market, because this is a potential market but the import regulation policies of the host country are always changing in a way that is unfavorable to Vietnamese enterprises.

Textile and garment is a field with many enterprises participating, nationwide there are more than 5,000 enterprises, employing more than 2.5 million workers. This is also an industry with a large export proportion of Vietnam.

In Nghe An, according to Ms. Vo Thi An - Deputy Director of the Department of Industry and Trade, there are 15 textile and garment enterprises regularly participating in production and export. In addition, there are also a number of private establishments participating in the production of processed goods for domestic enterprises.

In recent years, the textile and garment industry has always been at the top in both output and value among Nghe An's export products. This result reflects the efforts of enterprises when investing in the province, contributing to creating jobs for tens of thousands of workers in rural areas. Although the income of textile and garment workers is not high, this sector has a multi-dimensional impact on socio-economic development.

Nguyen Nguyen