Textile and garment exports: Will reach the target of 19.5 billion USD
In the first 6 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% over 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 proactiveness of enterprises, in 2013, textile and garment export turnover is likely to reach 19.5 billion USD.
Major export markets grew strongly
The above positive growth signals have affirmed the competitive position of Vietnamese textile and garment products in the world market, especially in four key markets: the US, EU, Japan, and South Korea.
Currently, the US is the largest textile and garment export market of Vietnam. In the first 6 months, the export turnover reached 3.94 billion USD, accounting for 44.8% of the total export turnover of the whole industry, up 12% over the same period last year. Mr. Le Tien Truong said that among the exports to the US market, the new good news is that Vietnam's export of synthetic fibers has increased by 14.5% over the same period last year.
With the EU bloc, Vietnam's textile and garment exports reached 1.29 billion USD, up 18% due to economic growth. Thanks to proactive market expansion, Vietnam's textile and garment exports, which were previously only exported to developed EU countries, have now expanded to developing countries and new members of the EU bloc.
The Japanese market also achieved textile and garment export turnover of 1.1 billion USD, accounting for 12.5% of export turnover, up 24.5%. It is expected that with the Japanese market, Vietnam's textile and garment exports will develop a growth scale approximately equal to that of the EU market.
South Korea will be Vietnam's fourth largest textile and garment export market, with export turnover expected to reach over 1 billion USD in 2013. In the first 6 months of the year, export turnover to this market reached 660 million USD.
In the first 6 months of the year, the production and business activities of the Textile and Garment Group achieved positive results with revenue of 20,227 billion VND, up 11%; domestic revenue of 10,079 billion VND, up 11%; export turnover of 8.9 billion USD, up 14.5% compared to the same period in 2012. The target for the whole year of 2013 is that the total revenue of the group will reach 23,565 billion VND, up 13%, and profit of 919 billion VND, up 11% compared to 2012. |
Forming a complete supply chain
Currently, the textile and garment industry has not yet implemented the supply chain, and is still heavily dependent on imported raw materials. Specifically, of the nearly 9 billion USD of exports in the first half of the year, 5.1 billion USD was imported, the surplus on the total export turnover was only about 3.8 billion USD. This situation leads to weaknesses such as the low accumulation ratio of the domestic textile and garment industry, mainly strong in the sewing stage (low investment stage, easy to shift, so there will be risks for sustainable development).
The Trans-Pacific Partnership Agreement (TPP) is being negotiated by the parties and is expected to be completed in 2013. Mr. Le Tien Truong commented that if signed, the Trans-Pacific Agreement will be a new “boost” for Vietnam’s textile and garment industry in terms of both production and export scale as well as improving the added value of textile and garment products.
According to Mr. Le Tien Truong, in order to make the most of the TPP Agreement, textile and garment enterprises must form an internal supply chain, with organic links between stages, in which a complete supply chain from design - raw materials - sewing - distribution must be formed within the community of members participating in the TPP Agreement. However, enterprises should not take advantage of the TPP as a short-term development savior, but more importantly, they need to take advantage of this opportunity to increase competitiveness and build a sustainable development strategy.
According to baocongthuong - PH
