Viet Nam News, Vietnam
(24-09-2014)
HCM CITY — Viet Nam’s textile and garment sector is expected to rank even higher among the world’s top garment exporters if targets are met by the yearend.
Last year, Vietnamese garment and textile exports were ranked 10th worldwide, after China, the EU, Turkey, India, Mexico, Hong Kong, Bangladesh, Indonesia and the US.
If export value this year reaches the targeted $9.5 billion, the ranking is expected to rise, according to Nguyen Son, deputy general secretary of the Viet Nam Garment and Textile Association.
By 2015 or 2020, the Vietnamese industry is expected to be in the world’s top five, he said.
To reach this year’s target, the industry must earn an average US$850 million per month for the rest of the year, he added.
In the first eight months of the year, garment and textile export value reached $6.04 billion, up 20 per cent compared to the same period last year.
Export value in August was $950 million higher than the average export monthly revenue of $700-$800 million during the first half of the year.
Despite significant growth, the textile and garment sector, like other sectors, is facing difficulty because of unfavourable economic changes in domestic and global markets.
With the current 21 per cent annual interest rate on bank loans in Viet Nam, profits have been only high enough to cover interest on loans taken out by many companies.
Several small and medium – sized enterprises are at risk of bankruptcy, said Son, adding that dependence on foreign supplies of materials was also a weakness for domestic garment-makers.
In addition, the industry still faces protectionism from several countries, as well as technical obstacles and anti-dumping actions from the US, said Son.
The US is the top importer of Vietnamese garments and textiles, buying between 55 per cent and 57 per cent of exports, followed by the EU, Japan, Russia, South Korea and Canada.
The Ministry of Trade and Industry and Vitas have urged companies to curb the number of cheap exports to established markets. — VNS
