Textile, garment sector finds way to restore

With fierce competition with international rivals, textile and garment sector is seen to face difficulties. It is predicted that many small and medium enterprises will lose its order; accordingly it is likely that the sector will get failure in local and export market.

Workers of Sai Gon 3 Textile and Garment Company are working (Photo: SGGP)

The Vietnam Textile and Apparel Association (VITAS) said, the sector’s export turnover reached around US$28.5 billion in 2016, much lower than expectation of US$1.5 billion and completing 92 percent of the goal.

VITAS managers explained that there had been downturn in the world; therefore, all nations faced difficulties in expanding market even big countries like India, China whose export turnover reduced compared to 2015.

In addition, Vietnamese textile was in stiff competition with its strong Chinese, Indian, Pakistani and Bangladesh competitors which enjoy their governments’ preferential policies.

Despite these difficulties, Minister of Industry and Trade Tran Tuan Anh highly lauded the sector because its current market share in giant markets showed a growth; for instance, its market share in the US increased by 11 percent and also in Japan.

When it comes to 2017, VITAS said that the sector will still face difficulties because of fierce competition and strong competitors will continue attract more order than Vietnam thanks to its government’s tariff and foreign exchange preferential policies and political unrest in some countries.

Vinatex added that in 2017, Vietnamese textile and garment sector will not yet take full advantages of EVFTA and TPP which take effect in 2018.

With such prediction, the sector set target of 6.5-7 percent in 2017 or US$30 billion.

As per the Ministry of Industry and Trade, in 2017, in addition to opportunities, the integration will produce challenges for the sector especially for small and medium companies. Local small and medium enterprises can even lose its traditional commodity order which bigger companies especially FDI companies will grasp it. Subsequently, small and medium companies should have long broad and long-term strategies besides the government’s support to overcome the rough time.

The state-run Vietnam National Textile And Garment Group (Vinatex) General  director Le Tien Tuong said that his group strives to push up production by 14 percent compared to last year. The group will make the effort to increase export turnover by 11 percent and import turnover by 9 percent. To complete the goal, Vinatex will focus on expanding its markets more especially key markets such as the US, EU, and Japan.

He petitioned that the government should have policies to encourage local enterprises in implementing of higher export processing methods, namely FOB, ODM and OBM. Moreover, the government should have preferential credit policies to purchase Vietnamese materials and for investment of special equipment as well as organizing promotion fair to attract more customers.

By Lac Phong – translated by Uyen Phuong

Other news

Most view

Banking-finance

VNPT & SeABank cooperate to enhance connections

The Vietnam Posts and Telecommunications Group (VNPT) and SeABank just co-signed cooperation agreement, aiming to develop the two sides’ economic, business and investment potential.


Economy

HCMC focuses on safe pig breeding chain

The HCM City department of agriculture & rural development has just held conference about the sustainable pig breeding and safe pork production market in HCMC.

Self - introduction

VNPT targets to be leading digital service provider in Vietnam

The grand opening ceremony of the VNPT-Information Technology Company (VNPT-IT), a new member of the Vietnam Posts and Telecommunications Group (VNPT), was held yesterday in Hanoi. With thousands of IT engineers and the focus on developing state-of-the-art technological products related to Artificial Intelligence (AI), Bigdata, and Blockchain, the new company is considered the main force to help VNPT fulfill the goal of becoming a leading digital service provider in Vietnam and an important Digital Hub of the neighborhood as well as the world.

Stock market

STK to issue 10.8million shares

The shareholders of Century Synthetic Fiber Corp (code: STK) have approved plan to issue 10.8 million shares.