Vietnam textile and garment exports cross $11.2b in 2010

With export turnover of more than $11.2 billion in 2010, textile and garment sector has let the footwear sector behind and become the key economic sector of Vietnam.

However, deputy general director of the Vietnam Garment & Textile Group Le Tien Truong said that there are many shortcomings in textile and garment sector, particularly productivity issue. Though having leading export turnover, imports of raw and auxiliary materials have also risen; though many labour have been employed, added value remains low; though industrial product is key, but Vietnam only does processing.
Vietnam’s textile and garment sector contains many paradoxes between realised figures and actual effectiveness.

Thus, assessing the direction of textile and garment industry of Vietnam, Truong said the essential solution is to improve productivity, including developing the industry clusters to more effectively connect production string towards competition.

Being one of the key export sectors of Vietnam, in recent years, textile and garment sector has always achieved growth rate of above 17 percent per year. In 2009, thanks to the efforts of businesses and supports from the stimulus package of the government, exports of the sector were still over $9 billion, just down by 0.4 percent compared to 2008, in the context when the commodity prices plummeted globally.

In 2010, the sector still maintained high export growth, obtaining turnover of nearly $9.2 billion, up by 23 percent compared to the same period of 2009. Therefore, the sector has achieved the export turnover target of $11.2 billion, bringing textile and garment to become the industry with highest turnover, significantly contributing to the exports of the country, maintaining to be in top 10 leading countries in exporting textile and garment products.

According to statistics of the Vietnam Textile and Apparel Association (Vitas), in 2010, the US remains the main market of Vietnam. Of the total export turnover in 2010, exports to the US market accounted for over $6 billion, up by 22 percent compared to 2009. Market share of the sector in the US market thus also increased from 4.6 percent to 5.1 percent.

Notably, when textile and garment exports of a number of countries to the US decreased, Vietnam has still achieved high growth (of about 20 percent), accounting for 55 percent export market share into this market, while EU holds 20 percent and Japan holds nearly 10 percent.

With the advantages from the signed trade agreements, Vietnam is expanding textile and garment export to many other potential markets. The efforts of the entire industry have led Vietnam to become big supplier of textile and garment, and be in top five world’s largest textile and garment manufacturers.

In major markets such as the US, Japan, Vietnam’s textile and garment industry ranks second in export and accounts for about 2.5 percent of the textile and garment market share globally.
Vitas confirmed that target of $13 billion in 2011 might become realistic for the industry.

However, there are weaknesses, such as less developed supporting industries, high ratio of processing, lack of high quality human resources, unable to provide complete package, limited fashion design capability.

According to Truong, along with the opportunities when consumption market is gradually recovering and its advantages, Vietnam’s textile and garment industry is still able to maintain its competitiveness. The objective of the industry by 2015 is to become one of the key export industries, striving to achieve export turnover of $20 billion, with localisation rate of 60 percent and attracting 2.5 million workers. – Vietnam+

Tags: Vietnam textile and garment exports