Garment and textile export turnover soar in first eight months
15:27, 2014/09/16
According to statistics from the Ministry of Industry and Trade (MoIT), Vietnamese textile and garment exports earned roughly US$2.2 billion in August, an increase of 0.2% from the previous month and up 20.9% compared to the same period in 2013.
The industry reclaimed its leading position on exports in the processing industry group with total turnover during the last eight months reaching approximately US$13.7 billion, a year-on-year increase of 19.7%.
In spite of high export turnover, the industry recorded a relatively modest added value, which was mainly sourced from its dependence on imported raw materials for production, General Secretary of Vietnam Textile and Apparel Association, Dang Phuong Dung said.
Domestic suppliers only satisfy 1% of demand for cotton and 20.2% for fabric needs. Particularly with fibrous materials, the sector has a capacity of producing 6 million spindles per year, but only 30% of them were used for production.
Besides, Vietnam's garment industry was mainly an outsourced manufacturing link with inactive involvement in the dynamic global textile supply chain. Outsourced domestic manufacturers themselves are also passive in finding customers and expanding markets.
It is important to realise that under pressure from trade agreements that soon will be signed, developing the supply of domestic raw materials and promoting production method change are the top solutions for improving the quality of textile products for export.
Proceeding to the higher production methods to enhance the added value in products is the inevitable trend of businesses, especially prior to a series of new trade agreements. Therefore, businesses should be aware of and thoroughly prepare, focusing on material market research and producing on demand from their partners.
Along with better implementation of measures to stabilise prices and domestic market, the ministry will focus on promoting the development of industrial production, reducing inventory, and effectively managing imports to promote the development of the domestic market.
In a bid to maintain the sector’s growth momentum in September and the remainder of the year, MoIT will strengthen solutions to further boost trade promotion and diversify markets for local products.
Domestic suppliers only satisfy 1% of demand for cotton and 20.2% for fabric needs. Particularly with fibrous materials, the sector has a capacity of producing 6 million spindles per year, but only 30% of them were used for production.
Besides, Vietnam's garment industry was mainly an outsourced manufacturing link with inactive involvement in the dynamic global textile supply chain. Outsourced domestic manufacturers themselves are also passive in finding customers and expanding markets.
It is important to realise that under pressure from trade agreements that soon will be signed, developing the supply of domestic raw materials and promoting production method change are the top solutions for improving the quality of textile products for export.
Proceeding to the higher production methods to enhance the added value in products is the inevitable trend of businesses, especially prior to a series of new trade agreements. Therefore, businesses should be aware of and thoroughly prepare, focusing on material market research and producing on demand from their partners.
Along with better implementation of measures to stabilise prices and domestic market, the ministry will focus on promoting the development of industrial production, reducing inventory, and effectively managing imports to promote the development of the domestic market.
In a bid to maintain the sector’s growth momentum in September and the remainder of the year, MoIT will strengthen solutions to further boost trade promotion and diversify markets for local products.
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