Garments, textiles nab top spot for exports
Viet Nam News, Vietnam
For the first time, textile and garment exports have exceeded that of oil. According to the General Statistics Office, garment exports reached US$5.8 billion in the nine month period ending September 30, up 31.6 per cent year-on-year. Crude exports on the other hand were $5.7 billion, down about 12.8 per cent.
Viet Nam News reporter Phuong Hoa talked with experts about the garment industry’s growth and future.
Le Quoc An, chairman of the Viet Nam Textile and Apparel Association (Vitas)
Did you foresee textiles and garments leading exports?
Of course, we predicted this would happen because the industry has a lot of potential for continued growth, not only for the next couple of decades but over the very long term.
Another bright spot has been the fact Viet Nam was recently listed among the top 10 garment exporters in the world by a delegation from the Italian Biella Commerce Chamber when they visited HCM City. Viet Nam was only ranked 13th in 2005.
Did you expect it would be these three quarters that garments would beat oil exports?
No. It was earlier than anticipated, and we hope to maintain the top spot until the end of the year.
We also believe the industry can keep the top spot in the coming years, considering annual growth should average about 18-20 per cent until 2014. After this period, growth should ease.
The US, the biggest single importer of Vietnamese textiles and garments, threatens to impose anti-dumping measures. What are your thoughts on the threat?
The anti-dumping measures can be regarded as an axe that may fall at any time. Anybody below it will of course feel fear.
However, we can confirm our average per unit price is double versus products from all over the world that are shipped to the lucrative US market.
There is no reason for the DoC (the US Department of Commerce) to conclude that Viet Nam dumps its garments into the US market.
The DoC has reported statistics for the first six months of the year. According to the department, the total volume of Vietnamese textile and garment exports increased only 18 per cent, while the value rose 20 per cent from a year earlier.
David Morton, deputy CEO of HSBC Viet Nam
Why did HSBC award medals to outstanding textile and garment companies earlier this month?
The textile industry is one of Viet Nam’s success stories, and your products have tapped into many corners of the world.
We think it is a good industry to support and are very proud of the 50 winners in this year’s event, 10 of which are our clients.
The industry may possibly hit over US$7 billion for all of 2014 with a growth rate of around 22 per cent year-on-year.
I would be very surprised if the textile and garment industry continues at a double-digit growth rate for long. It may reach $8-9 billion next year.
How do you feel about garment exports exceeding oil?
It shows a couple of things. It shows the Vietnamese Government has adopted the right policies in terms of opening up the industry and freeing up exports.
Next, it is only the first step. The way Viet Nam grows is not just in textiles, but also in other industries.
The Vietnamese textile industry will continue growing well and become more competitive in the world market because you have several competitive advantages.
You have good access to raw materials, as well good access to relatively less expensive labour. You are also very intelligent and hard working with a better educated and young population.
Can you comment on your loans to textile and garment enterprises?
It is a good industry, so the bank has been profitable because of them.
We have about 3,000 customers and 33,000 retail clients in this country, of which apparel firms account for 5 per cent of our total loans.
HSBC’s growth in revenue is some 30 per cent per annum in Viet Nam. — VNS
