Garment and textile exports reach $5.87b

The garment and textile industry is estimated to have achieved revenue of US$5.87 billion in the first seven months of this year, up 17.3 per cent over the same period last year, according to the Ministry of Industry and Trade.

The ministry added that in July alone, the industry earned $1.05 billion from exports, a month-on-month increase of 23.5 per cent.

“In the first seven months, the industry has seen rapid growth in almost every market,” said Le Quoc An, chairman of the Viet Nam Textiles and Apparel Association (VITAS).

An said South Korea had become a lucrative new market, with exports estimated to have increased by 80 per cent in the first seven months.

“Trade agreement between Southeast Asia and South Korea has come into effect so tariffs have dropped to nearly zero. Thanks to that, Vietnamese textile and garment products in this market have become more competitive,” An said.

South Koreans, he added, had started to use Vietnamese products. “In the past, South Koreans often imported Vietnamese products to export. Now, they are selling and using our products,” An said.

Following South Korea are ASEAN countries, the US and Japan with growth of 30 per cent, 23 per cent and 15 per cent, respectively.

“In the US, we remain the second after China, but we’re trying to widen the market in ASEAN along with developing traditional markets such as the US and the EU,” he said.

While achieving high growth rates in almost all countries, exports to the EU have slowed due to the region still being affected by the world recession.

“In seven months, exports to this market increased only 1.5 per cent. This market has not really recovered, so demand remains modest,” An explained.

With these numbers, the association is positive that the country will fulfil the year’s target which was set at the beginning of this year.

“We believe that the country is capable of obtaining revenue of $10.5 billion for the whole year, a year-on-year growth of about 15 per cent,” said An.

In June, the country earned nearly $850 million from exports, earning $4.8 billion in the first six months of the year alone, an annual increase of 17.2 per cent.

Besides the export market, garment companies have recently focused on the domestic market. They have co-operated with each other to open more distribution systems and organising promotion programmes. The companies recently achieved an average growth rate of 15-18 per cent, the association said. — VNS

Tags: Vietnam garment exports, Vietnam Garment industry, Vietnam textile industry