Garment exports soar in first quarter

Garment exports are expected to reach the target of US$10.5 billion this year, as growth of 12.3 percent in the first three months of this year suggests that the industry is on the path to recovery from the global recession.

Exports totalled US$2.16 billion in the first quarter, according to the General Statistics Office.

Signs are positive for a growing number of orders in the second quarter, said Vietnam National Textile and Garment Group (Vinatex) general director Le Tien Truong.

With the IMF forecasting a global growth of over 2 percent this year, purchasing power has returned in such major markets as the US, Japan and EU, creating favourable conditions for the garment sector.

Exports of jackets and shirts have increased both in terms of quantity and value to all three markets, especially to the US, with average prices rising by 2-3 percent compared to last year, according to Vinatex.

Many garment makers have rushed to step up production, many having already received orders through the end of the third quarter and some even for the end of the year, confirmed the Vietnam Textile and Apparel Association (Vitas).

The number of orders this year will certainly be higher than last year, said Vitas chairman Le Quoc An, and many exporters have found buyers willing to pay 10-15 percent more than before the economic downturn.

More favourable foreign exchange policies this year will help the association’s member companies expand production even more effectively, An added.

Garment makers have also been proactive in securing sources of imported materials, helping stabilise costs, said Truong, and Vinatex has been promoting the use of domestic materials.

Vinatex deputy general director Le Trung Hai said the industry was already able to meet 25-35 percent of domestic fibre demand, and this could rise to 70 percent by 2011, once the Dinh Vu fibre factory in Hai Phong’s Dinh Vu Industrial Zone begins operations, with a capacity of 600 tonnes of polyester fibre per day.

The area under cotton cultivation nationwide last year reached 9,000ha, three times the figure in 2007, and would increase to 16,500ha this year, Hai said.

The garment industry is targeting exports of USS16-18 billion per year by 2015, with more fashionable and higher value-added products, according to Vitas.

VOVNews

Tags: Vietnam Garment, Vietnam garment exports