Vietnam’s textile-garment industry hopes for breakthroughs in 2019
Updated : Monday, February 11, 2019 11:22 AM (GMT+0700)

Vietnam’s textile andgarment sector is hoped to make breakthroughs in 2019 based on successes andmomentum last year.

 
Illustrative image - Source: VNA

According to the Vietnam Textile and Apparel Association(VITAS), 2018 was a successful year for the textile and garment industry with atotal export turnover of over 36 billion USD, up over 16 percent year-on-year,making Vietnam one of the three biggest exporters of textiles and garments inthe world. 

VITAS Chairman Vu Duc Giang said last year, the world sawcomplicated developments, rising trade disputes and scientific-technologicaladvances. In that context, the association proposed many measures to theGovernment, and relevant ministries and sectors to remove policies that causedifficulties for businesses operating in this field, he said.

With the results achieved in 2018, Vietnamese textile firmshave witnessed positive signals for orders in 2019. 

Many businesses have already received orders for the firstsix months of 2019 and even the whole year. Vietnam’s products are highlycompetitive and the country gradually completed the textile supply chainbecause flows of capital investment in the textile and dyeing industry, andmaterial has been on the rise. 

The upcoming enforcement of new generation free tradeagreements is a positive factor supporting for production and businessactivities of the sector in 2019. 

On that basis, VITAS has set a target of 40 billion USD inexport turnover, up 10.8 percent compared to 2018. The sector is expected toenjoy a trade surplus of 20 billion USD, and create employment and increaseincome for 2.85 million workers.

Experts said in 2019, the Comprehensive and ProgressiveAgreement for Trans-Pacific Partnership (CPTPP) is hoped to create a boost formany industries of Vietnam, including the textile and garment sector. Inaddition, the textile and garment sector is also waiting for more ordersshifted from China to Vietnam due to the US-China trade war. 

According to Pham Xuan Hong, Chairman of the Board ofDirectors of Saigon 3 Garment Joint Stock Company, domesticenterprises will be enabled to choose orders with highs price and easierrequirements when a lot of orders are moved from China to Vietnam.  

In order to catch up with these opportunities, local businessesneed to gradually improve technologies and invest more in new technologies, hesaid. 

However, opportunities will always go with challenges,experts said.

According to the Ministry of Industry and Trade, 2019 willcontinue to be a challenging year for the sector to integrate into the globaltextile supply chain.

Especially, the fourth Industrial Revolution will have greatimpacts on the textile and garment industry in the coming time, forcing it tochange and strongly increase investment in equipment and personnel.

Many consumers now require origin certifications andenvironmentally-friendly products, so textile and garment enterprises need toensure global standards of materials to ensure health of customers. 

Bui Kim Thuy, Chief Representative of the US-ASEAN BusinessCouncil (USABC), said Vietnam is participating in 16 free trade agreements(FTAs). Ten out of 12 signed agreements have been enforced, such as the ASEANTrade in Goods Agreement (ATIGA), the ASEAN-China FTA, the ASEAN-Korea FTA, whilethe two remainders, the CPTPP and the ASEAN-Hong Kong (China) FTA, have not yetcome into force.

The participation in various FTAs helps Vietnameseenterprises to have more choices in exporting goods abroad. However, those arealso bringing challenges to the sector, she said.

Thuy stressed that if businesses do not meet regulations onorigin of goods, it will be difficult for them to take full advantage ofincentives from FTAs.

Source: VNA

Write your comment here
Name:
Email:
Title:
Comment:
© PhuYen Newspaper- Editorial Board: 62 Le Duan, Tuy Hoa City, Phu Yen Province
Tel: (84-057).2211110 - (84-057).3842488, Fax: (84-057).3841275
Email: tsbpy@dng.vnn.vn
Designed by nTek