Wed. Feb 28th, 2024

Rosy outlook for garment trade

Workers at the Nam Ha Garment Company make clothes for export. The target of 12-14 per cent export growth for the garment and textile sector is achievable, according to the industry association. — VNA/VNS Photo Vu Sinh

Ha NOI  (VNS)— The goal of 12-15 per cent export growth rate for the garment and textile industry this year is achievable, fetching between US$18.8-19.3 billion.

According to the Viet Nam Textile and Apparel Association (Vitas), the garment export value hit $4.2 billion in the first quarter of this year, a rise of 16 per cent over the same period last year.

Vitas vice-president Dang Phuong Dung said garment and textile enterprises had the advantage of nearly 100 per cent of workers returning to work after Tet (Lunar New Year) holiday.

Exports into traditional markets, such as Russia, Eastern Europe, the US, Japan and Europe saw stable growth while many enterprises penetrated new markets, such as South Korea, Turkey, Africa and Middle East countries. Some enterprises scored production orders until June.

Meanwhile, according to the deputy general director of the Viet Nam National Textile and Garment Group, Le Tien Truong, increasing input costs, especially petrol prices, may force up the price of goods and lower competitiveness.

This meant trying to save on the cost of raw materials and energy while increasing labour productivity, he said.

The association urged enterprises to penetrate niche markets by being flexible in meeting all demands.

Meanwhile, according to some economic experts, the garment and textile sector must increase the use of domestic raw materials in production rather than imported ones to improve growth.

Currently, the localisation rate of Viet Nam was at 48-50 per cent, low in comparison with 90 per cent in China and India.

It earned a turnover of $17.2 billion in 2012, an increase of 8.5 per cent over 2011.

In terms of turnover, the industry has led the field of export industries for five consecutive years.

Last year, the sector provided jobs for more than 2 million people. It expects to create job for an additional 200,000 people this year. — VNS

By vivian