Apparel exporters to pass benchmark

The textile and garment sector’s export value is expected to earn 7.5 billion USD during the first nine months, a 17 percent increase against the same period last year, reports the Vietnam Textile and Apparel Association.

The industry is likely to surpass its scheduled 10.5 billion USD benchmark for the year.

The sector’s solid performance is attributed to an increase in orders from foreign clients and the products’ prices increased by 15-20 percent.

Export growth to the European market keep stagnant, while other markets remain accelerating during the period.

The country’s export to the US market increases around 20 percent and to Japan raises by 15 percent and to ASEAN nations goes up by 17 percent.

Especially, the trade agreement between ASEAN with the Republic of Korea has helped boost Vietnamese garments’ export to the market with the sharp increase of 80 percent.

The association reported that many garment makers had so far received enough orders for export this year, and signed contracts for export next year.

However, the association claimed that the early orders may shrink profit of the enterprises amid on-rising prices of input materials, accessories and higher salaries.

To satisfy increasing demand of international contracts, ten companies under the Vietnam National Textile and Garment Group (Vinatex) have recently made production expansion investments to meet increasing orders from foreign partners as well as higher demand at the local market.

The Nha Be Garment Joint stock Co has approved a plan to inject thousands of billions of dong to implement tens of projects on textile, garment, washing and dyeing.

The Dap Cau Garment Joint Stock Co invested nearly 100 billion VND (5.13 million USD) in a new factory in the northern province of Bac Ninh. It was put into operation in February and has the capacity to produce 9 million products annually.

Nguyen Dang Luan, chairman of Dap Cau Co, said the new facility would help the firm meet the rising number of export contracts.

“When the factory was prepared to begin operating the first 16 production lines the firm had already signed export deals for the whole year with three partners, generating 1,800 jobs,” Luan said.

Tags: Vietnam Apparel, Vietnam Apparel Exports