Textile and garment exports: Target of $19.5 billion to be achieved.

In the first six months of the year, despite facing many difficulties, the textile and garment industry still achieved positive results, with export turnover reaching 8.9 billion USD, an increase of 14.5% compared to the same period last year.

According to Mr. Le Tien Truong, Permanent Deputy General Director of Vietnam Textile and Garment Group (Vinatex), along with signs of recovery in the export market and the proactive approach of businesses, the export turnover of textiles and garments in 2013 is likely to reach 19.5 billion USD.

Major export markets experienced high growth.

These positive growth signals have affirmed the competitive position of Vietnamese textile and garment products in the world market, especially in the four key markets: the US, the EU, Japan, and South Korea.

Currently, the US is Vietnam's largest export market for textiles and garments. In the first six months, exports reached US$3.94 billion, accounting for 44.8% of the total export turnover of the entire industry, an increase of 12% compared to the same period last year. Mr. Le Tien Truong said that among the goods exported to the US market, a new positive sign is that Vietnam's exports of artificial fibers have increased by 14.5% compared to the same period last year.

With regard to the EU, Vietnam's textile and garment exports reached US$1.29 billion, an increase of 18% due to the economic recovery. Thanks to proactive market expansion, Vietnamese textiles and garments, which previously only exported to developed EU countries, have now expanded to developing countries and new EU members.

The Japanese market also achieved textile and garment exports worth $1.1 billion, accounting for 12.5% ​​of total export turnover, an increase of 24.5%. It is expected that, with the Japanese market, Vietnam's textile and garment exports will achieve a growth scale approximately equal to that of the EU market.

South Korea will be Vietnam's fourth largest export market for textiles and garments, with export turnover in 2013 expected to exceed US$1 billion. In the first six months of the year, export turnover to this market reached US$660 million.

Forming a complete supply chain

Currently, the textile and garment industry has not yet established a complete supply chain and remains heavily dependent on imported raw materials. Specifically, out of nearly $9 billion in exports in the first half of the year, $5.1 billion came from imports, resulting in a surplus of only about $3.8 billion. This situation leads to weaknesses such as a low proportion of domestic capital accumulation in the textile and garment industry, with its strength primarily concentrated in the garment manufacturing stage (low investment, easily reclassified, thus posing risks to sustainable development).

The Trans-Pacific Partnership (TPP) agreement is currently being negotiated and is expected to be finalized in 2013. Mr. Le Tien Truong believes that, if signed, the Trans-Pacific Partnership will be a new "boost" for Vietnam's textile and garment industry, both in terms of production scale and exports, as well as improving the added value of textile and garment products.

According to Mr. Le Tien Truong, to maximize the benefits of the TPP Agreement, textile and garment businesses must form an internal supply chain with organic linkages between stages. A complete supply chain from design - raw materials - sewing - distribution must be established within the community of TPP signatory members. However, businesses should not use the TPP as a quick fix for short-term development, but more importantly, they need to make good use of this opportunity to increase competitiveness and build a sustainable development strategy.

According to baocongthuong - PH