Garment and textile exports to hit $13b this year: Vitas

Viet Nam should be able to export US$13 billion of garments and textiles this year, according to the Viet Nam Textile and Apparel Association (Vitas).

Vitas said the goal was achievable given that established partners had recently agreed to a price increase of between 15 and 20 percent.

In the first quarter of this year, the industry earned $2.8 billion from exports, a year-on-year increase of 28 percent.

According to Vitas, the price of many imported raw materials had surged.

For example, the price of cotton imported from the US had increased by 74.1 percent in comparison with the same period last year, while the cost of labour, transportation and power had also gone up.

To solve the problem, the association has worked with provinces to construct industrial zones in which they can plant cotton and produce other raw materials.

As part of a garment and textile development plan in 2010-15, the industry will meet about 45 percent of the domestic fibre demand in 2011, and this figure will increase to 70 percent in 2012.

In 2015, the localisation rate is expected to be 70-80 percent. – VNS

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