VGP – Vietnam’s garment and textile sector has seen fast and sustainable growth over the past years, playing an important role in national socio-economic development.
Vietnam is one of the top 10 countries that have highest export turnover of garment and textile in the world. The sector aims to earn an export turnover of US$15 billion by the end of 2012, US$22.5 billion ny 2015 and US$31 billion by 2020, maintaining its leading position in exports.
Despite the global economic downturn in recent years, the sector has seen impressive export performance. Export turnover reached more than US$11 billion in 2010, up 24% against 2009, US$13.8 billion in 2011, accounting for 16.5% of the country’ total export turnover and up 38% against 2010. The sector’s import surplus fetched US $6.5 billion with localization rate reaching 50%. The sector targets to ship US$15 billion in 2012, an increase of 10%-12% against 2011.
Such achievements are attributable to enterprises’ efforts to build up and consolidate partnership with major importers in the world, while taking advantage of low-cost skillful and abundant labor force. There are promising signs for the garment and textile industry as the global economy is bouncing back.
The further signing of bilateral and multilateral agreements with countries and regions have opened export opportunities for Vietnamese goods. The garment and textile sector is hopeful about the Trans-Pacific Partnership Agreement, which enable it to further access the US, EU and Japanese markets.
Items available in the US market account for 50% of Vietnam’s total garment exports. The EU is Vietnam’s second largest importer with 18% of the country’s total export volumes. Japan comes third, importing US$124.42 million worth of garment and textile items.
However, experts suggest that Vietnamese businesses need to thoroughly study each market to make full use of benefits. Besides market trends and traditional competitiveness factors such as capacity, quality and prices, the world’s textile and garment industry is facing the issues of social responsibilities and environmental protection, which related enterprises need to address.
To cope with the situation, Prime Minister Nguyen Tan Dung has approved the Strategy for the Development of Vietnam’s Garment and Textile Industry by 2015 and Orientations by 2020. Accordingly, the industry will become a spearhead sector for exports, meet the increasing domestic demands, create more jobs and enhance national competitive edge to integrate deeply in the regional and world economies.
The Strategy aims to enhance competitiveness of businesses and products instead of increasing outsourced quantity and values.
The Prime Minister has passed a Program to develop Vietnam’s cotton cultivation by 2015. Accordingly, the cotton cultivation areas will be expanded to 30,000 ha by 2015 and to 76,000 ha by 2020. The active implementation of this program will help enterprises secure input materials.
Deputy Prime Minister Hoang Trung Hai has urged the garments and textile sector to enhance corporate and product competitive edge by improving product quality, increasing localization rate and securing input materials.
The Deputy Prime Minister also stressed on the importance of product designs and cotton supply, which is essential for enhancing values of Vietnamese these items in the world markets.
Vietnam is implementing a program to produce one billion meters of fabrics, develop cotton cultivation and human resources.
By Ngoc Van
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