With the achievement, Vietnam ranks 26th in the world for textile and garment export turnover.
Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (Vitas), said that the result was impressive as the industry last year earned only $28.3 billion, failing to meet the yearly export target of $30 billion.
In 2017, the United States remained the industry’s top export market with $12.53 billion, accounting for 48.3 per cent of the industry’s total export turnover.
According to Giang, contrary to pessimistic forecasts about a reduction in the United States following the withdrawal of the country from the Trans-Pacific Partnership, Vietnam’s textile and garment firms signed many export contracts with the United States’ importers.
Besides ASEAN and East Europe markets, domestic exporters also fully capitalized on the three remaining large markets of the EU, Japan and South Korea.
According to Truong Van Cam, Vitas deputy president, early 2017 was challenging for the sector with orders from Vietnam’s partner countries fell sharply, given the uncertainty of the Trans-Pacific Partnership.In response, domestic garment and textile enterprises have increased their investment in improved production systems, designed more competitive products, and sought new markets.
As a result, by the end of the third quarter the sector had earned nearly $23 billion from exports. Fourth quarter revenue is projected to reach $8 billion, of which $5.25 billion will come from the last two months of this year, raising the total export turnover to $31 billion, up 10 percent over last year.
This achievement is attributed to businesses’ careful preparations and the government’s policy to support the development of auxiliary industries.
After many years depending on imports, Vietnam gained $3.5 billion from exports of fibre and yarn as well as $1.5 billion from textile accessories.
As the fiber sector is encountering anti-dumping tariffs in some major export markets like Turkey, India, and Brazil, this outcome proves encouraging.
According to Giang, after Turkey imposed anti-dumping tariffs on several types of export fiber, such as draw textured yarn (DTY) and synthetic fiber in 2016, local export firms have been successful in finding alternative markets, which was the factor behind the more than 20 per cent jump in the fiber sector’s ten-month export value.
Soi The Ky JSC (STK), a major player in the local fiber industry, is one of the businesses whose export operations were affected by Turkey’s tax imposition, as the company had exported DTY there.
Completing this year’s $31 billion export plan will be an important precondition for the industry to meet the $34 billion target set for next year.
To boost exports, Cam said that the industry has been striving to apply modern technologies, especially industry 4.0 technologies in production to improve efficiency, productivity, diversify products and enhance product quality for higher added value.
Vitas has also proposed that the Government review its policies of wages, insurances, administrative procedures and checks for import/export for amendments to remove the bottlenecks for garment and textile companies.
However, it has also urged domestic firms to improve the competitiveness as there will be some challenges faced the industry in 2018.
