Garments top nation’s export list

The textile and garment industry’s export revenue reached US$9.1 billion last year, making it the largest foreign currency earner in the country, said Le Quoc An, chairman of the Viet Nam Textile and Apparel Association (Vitas).

The textile and garment industry is the country’s only sector whose export revenue has not declined compared to 2008 in the context of global economic recession.

The textile and garment industry is the country’s only sector whose export revenue has not declined compared to 2008 in the context of global economic recession, An said.

He said despite export declines in some traditional markets in 2009, exports to new markets have increased significantly as companies had diversified markets.

Exports to traditional markets such as the US and EU reduced by 5 per cent and 3.5 per cent, respectively.

However, exports to Japan increased by 15 per cent; South Korea up by 67 per cent; India up by 60 per cent and ASEAN up by 29 per cent.

An said garment and textile companies had increased the use of local materials in their products with local content rising to 44 per cent last year compared to 38 per cent in 2008.

Cloth imports last year reduced by 6.9 per cent against 2008. Textile fibre and cotton imports also reduced by 0.3 per cent and 15.3 per cent, respectively.

The garment and textile sector imported about $5 billion of materials last year.

$10.5 billion target

The Government has targeted export revenue of $10.5 billion this year.

“We believe the industry will meet the target as many garment and textile companies now have export orders until the end of the second quarter,” An said.

He said to meet the target, the industry would focus on investing in reorganising production, applying advanced technology, retaining traditional customers and finding new ones.

The industry will develop strategies to cooperate with large retail and import customers to stabilise export orders and learn managing and trade skills from them, he said.

Under the industry’s production restructure, garment and textile plants would be moved to rural areas to address the shortage of human sources and reduce production cost, with urban-based factories only manufacturing high-value products, he said.

He said the industry would develop industrial parks which specialise in increased local content in garment products, ensuring supplies for garment companies.

The industry would also strengthen designer training, fashion marketing and brand name development, he said.

There would be a gradual transition away from producing garments under contract, to selling products designed and produced by garment and textile companies to add value and improve industry sustainability, he said.

He added the industry would also focus on improving the lives of workers to ensure human resources and limit illegal strikes.

VietNamNet/Viet Nam News

Tags: Vietnam garment export, Vietnam Garment industry