Garment export target raised after good year

The country’s textile and garments sector has had its annual export forecast upped by US$500,000, based on performance this year.

The Ministry of Industry and Trade changed the sector’s forecast for 2011 from the previously announced $13 billion to $13.5 billion.

The new figure was announced after textile and garment exports rose to $7.56 billion in the first seven months of the year, up 29.4 per cent over the same period last year.

The US remains the largest buyer, accounting for over 50 per cent of the sector’s exports, followed by the EU with 17 per cent and Japan with 12 per cent.

The ministry estimates that exports will rise to $774 million to South Korea in 2011, a year-on-year increase of 80 per cent, making the country the fourth largest buyer of Vietnamese textiles and garments.

However, in addition to ongoing challenges, including high material prices and production costs, the sector would face tougher times when major markets cut orders due to lower demand, said Dang Phuong Dung, deputy chairwoman of the Viet Nam Textile and Apparel Association.

The increase in minimum wage beginning in October would also affect the operations of many enterprises in the sector, industry insiders have said.

While the move aims to help workers hit hard by inflation, it will also increase production costs in labour-intensive industries, including the textiles and garment industry.

Many members of the association have cut electricity consumption, management and operational costs, and have reduced stocks of materials in order to cope with the situation.

Than Duc Viet, managing director of the Garment Company No10, said his company had cut input costs by economising on water and power consumption, and re-organising its production lines to improve quality and enhance the company’s competitiveness.

Lotsa golf courses

The former Minister of Planning and Investment, Vo Hong Phuc, has affirmed that the country would have 118 golf courses under a new master plan for golf-course development toward 2020, submitted by the MPI and approved by Prime Minister Nguyen Tan Dung.

One day before stepping down from his post, Phuc said that among 118 projects, 20 were new ones, and 98 others were based on the former golf-course development plan.

He said the number of 118 golf courses was equivalent to the number of golf courses in neighbouring countries that have the same development level as Viet Nam.

The Philippines has 100 golf courses; Malaysia, 230; Thailand, 256; and Indonesia, 152, according to MPI figures.

Early this year, the People’s Committee of northern Bac Ninh Province asked the Government to add the 36-hole Hap Linh golf course project to the national golf-course development plan approved by the Government in 2009.

Central Quang Ngai Province recently set up a plan to establish Van Tuong Golf Course.

Thanh Hoa, Thai Nguyen, Thai Binh, Dak Lak and Quang Ninh provinces as well as Hai Phong City also have plans to open more golf courses.

Phuc said the new plan was co-prepared by the ministries of Planning and Investment, Natural Resources and Environment, Construction and the Government Office after these agencies had sent officials to localities for study tours.

He added that golf courses would help Viet Nam in the competition with neighbouring countries in attracting foreign investors and tourists from the developed world.

Of the 90 licensed golf courses in the country, only 28 are under operation. — VNS

Tags: Vietnam garment exports, Vietnam Garment industry