Garment, textile expected to outdistance last year export turnover

SGGP
The garment and textile industry is expected to obtain the export turnover of US$35 billion this year, $4 billion higher than last year number, as a result of abundant orders from free trade agreements.

Workers at Phuong Dong garment firm (Photo: SGGP)

Workers at Phuong Dong garment firm (Photo: SGGP)

At present, many enterprises are rushing to complete orders signed last year to deliver goods on schedule and negotiate new orders for 2018. This is a good signal showing that businesses have well adapted to fluctuations in the market economy as well as headed towards sustainable development, said chairman of HCMC Association of Garments, Textiles, Embroidery and Knitting (Agtek) Pham Xuan Hong.
According to Mr. Vu Duc Giang, chairman of Vietnam Textile and Apparel Association (Vitas), with currently positive market signals, US$35 billion export turnover is likely obtainable for the garment and textile industry.
Experts believed that garment and textile production and export by domestic firms this year continue growing strongly. Big brand names have been sending orders to Vietnam to enjoy tax incentives from free trade agreements.
However, they still warn of challenges in global supply chain.
Economic expert Le Dang Doanh said that Vietnam’s garment and textile products have faced severe competition from Bangladesh, Cambodia, Laos, Sri Lanka and Myanmar. So he prompted businesses to improve competitive ability to grasp opportunities and stand firm in the volatile market.
In addition, the US will track the origin of materials used for making garment products imported to the country to impose additional taxes on products made from Chinese materials.
Vietnamese products will be most put on the sight as Vietnam is the neighboring country of China. Therefore businesses should shift into using other material sources rather than Chinese materials to avoid risks, advised experts.

By LAC PHONG – Translated by Hai Mien

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