Garment-textile sector earns US$ 8 billion from exports in Q1

Friday, 2018-04-06 10:30:16
 Font Size:     |        Print
 

Illustrative image.
 Font Size:     |  

NDO/VNA – The export turnover of the garment-textile sector reached nearly US$ 8 billion in the first quarter of 2018, an annual increase of 13.3 percent.

The earnings are considered as a good start for the industry in realising its export target of US$ 35 billion by the end of this year.

President of the Ho Chi Minh City Association of Garment and Textile (AGTEK) Pham Xuan Hong said the sector has bright prospects this year.

Garment-textile exports in 2018 are anticipated to be better than in 2017, maintaining two-digit growth.

Chairman of the Directors Board of Hung Yen Garment Corporate Nguyen Xuan Duong said the number of orders is likely to increase this year, especially for large-scale businesses.

Most domestic enterprises have orders until the second of quarter of 2018. Some have even received orders for the third quarter, he said.

According to Chairman of the Vietnam Textile and Apparel Association Vu Duc Giang, Vietnamese garment-textile businesses can compete in the region thanks to the sharpened skills of workers, improved productivity and better quality products.

Domestic enterprises have also invested in new technology to increase productivity and competitiveness, he said.

Free trade agreements not only help the garment-textile sector to diversify its export markets but also reduces the import of material, he said, adding that currently Vietnam exports more than US$ 3 billion worth of yarn, nearly US$ 1 billion worth of fabric and US$ 400 million worth of garment accessories each year.

Industry 4.0 has changed the mindset of businesses in regards to technology investment, Chairman Giang said, noting that businesses are looking to high value production segments such as Original Design Manufacturing and Own Brand Manufacturing.

Garment-textile companies are also focusing on the development of human resources and cutting edge technology, he said.

Several large enterprises such as Phong Phu Joint Stock Company and Garment-10 Joint Stock Company are seeking to export through online sales, he added.

However, the Vietnam Textile & Apparel Association has warned businesses of numerous challenges, including fiercer competition from other countries such as China, Myanmar and Cambodia.

The association advised enterprises to improve the skills of workers and reform management methods to increase productivity.

Apart from maintaining and developing exports to key markets such as the US, the EU, Japan and the Republic of Korea, businesses should expand to other markets such as the Association of Southeast Asian Nations, Eurasian Economic Union, India and Latin American countries.