Garment sector eyes 34 billion USD in export turnover
Updated : Friday, January 05, 2018 9:27 AM (GMT+0700)

Vietnam’stextile and garment industry targets a year-on-year increase of 10 percent inexport value to 34 billion USD in 2018.

 
Illustrative image - Source: VNA

Le Tien Truong, GeneralDirector of the Vietnam National Garment and Textile Group (Vinatex), said thistarget was set despite difficulties in markets at home and abroad. He wasspeaking at a meeting on reporting Vinatex’s results of production and businessin Hanoi on January 2.

In 2018, Vietnam’s textileand garment industry will face more competition, while other textile exportingcountries in the world plan to maintain their market shares in the worldgarment market, as well as expand their market shares further, Truong said.

The local textile andgarment industry must be careful with the anti-dumping story, he said.

To achieve the target ofmore than 10 percent growth in 2018, Vinatex’s general director said that thetextile and garment industry must make great efforts to focus further onsolutions to increase labour productivity.

He said that Vietnam’s textileand garment industry stands at a good position in the world garment market. Themajor buyers of the world consider Vietnam as the supply centre and givepriority to Vietnam in supplying garment products to them.

Truong said that"Vietnam is the world’s largest producer of men’s and women’s suits.Moreover, Vietnam has had experience in converting from a productionmethod of processing to an FOB (free on board) and ODM (original designmanufacturer). Now, the processing has reached only 30-35 percent ofproduction, while FOB has accounted for 55-60 percent and ODM producing textileand garment products, from designing to finished-products, has occupied 10percent”.

In addition, the industryshould continue to invest in technology development to create stability,sustainability and efficiency in development of the textile and garmentindustry, he said.

Last year, the textile andgarment industry gained a year-on-year increase of 10.23 percent in the exportvalue of textile and garments to 31 billion USD, higher than its target set atthe beginning of the year at 30 billion USD.

Major markets such asthe United States, the European Union, Japan and the Republic ofKorea maintained good growth, while there were breakthroughs in exports toother markets such as China, Russia and Cambodia, accordingto Truong.

The Korean market jumped tothe fourth position, close to the Japanese market, reaching an export value of2.7 billion USD in 2017. Vietnam’s textile and garment exports to China in 2017reached 3.2 billion USD, the same as the export value to Japan.

Meanwhile, Truong said thedomestic textile and garment market also gained a year-on-year growth rate of10 percent in 2017.

The balance in developmentof the domestic market and the export market has been an important point forthe local textile and garment industry to ensure jobs for the employees and tomaintain development of the enterprises, he said.

During the meeting, Vinatexreported its total revenue in 2017 was estimated to have increased year-on-yearat 10.7 percent to 45.55 trillion VND (2.02 billion USD). Of this, domesticsales reached 10.39 trillion VND, accounting for 22.8 percent of the totalrevenue, 10.6 percent higher than the revenue in 2016.

The pre-tax profit in 2017reached 1.43 trillion VND, according to the group.

Vinatex set a revenue targetof 48.5 trillion VND, a year-on-year surge of 6.5 percent and a pre-tax profitof 1.45 trillion VND in 2018.

This year, the group willalso implement the divestment, according to the decision of the Prime Minister.The Ministry of Industry and Trade will withdraw its investment at 53.5 percentof Vinatex’s shares from the group this year.

Source:VNA

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