Textile & garment exports maintain growth momentum

The domestic textile and apparel industry has maintained its growth momentum with four-month export turnover increasing by 13.33% to US$11.747 billion compared to the same period from last year, according to data released by the Vietnam Textile and Apparel Association (VITAS).

Of the overall figure, garments accounted for the largest proportion with US$8,766 billion, followed by fiber with US$1,638 billion, and fabric with US$740 million.

The United States, Europe, and Japan continue to be the major consumption markets for Vietnamese garments and textiles, and several local firms have secured orders until the end of the year.

By sustaining steady growth, Vu Duc Giang, chairman of the VITAS, expresses his optimism that the set export target of US$39 billion can be achieved this year.

According to industry experts, the country’s garments and textiles enjoy a competitive advantage in several major markets, including the EU and the US, whilst the export prices of cotton T-shirts remain higher than the same types of items made in other regional countries such as Bangladesh.

However, several businesses point out that although production has bounced back following a hit caused by the novel coronavirus (COVID-19), their export revenues have yet to reach previous highs.

The decline in export turnover can largely be attributed to the fact that some companies like Garment 10 have received a number of orders at lower prices of outsourcing compared to 2019.

Meanwhile, a representative of Hue Textile and Garment Joint Stock Company expresses his worry that the second quarter of this year would be a difficult period for the garment sector as it coincides with the transition period between seasons. This period often sees sharp price fluctuations, changes in the structure of orders, product types, and declining percentage of free-on-board (FOB) orders.

Amid the complex nature of the COVID-19 pandemic, the garment sector is anticipated to be impacted by global trends, including market volatility and fluctuations.

The VITAS has therefore advised local businesses to closely monitor market changes, adjust production strategies, and seek new orders, while simultaneously making efforts to utilise green solutions in production towards sustainable development.

Meanwhile, the Ministry of Industry and Trade will continue promoting exports by optimising opportunities brought by free trade agreements (FTAs), diversifying export and import markets, along with improving the competitiveness of export products and developing trademarks.

Source: VOV