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1H textile & garment exports up 10.6%

Released at: 12:53, 05/07/2017

1H textile & garment exports up 10.6%

Photo: VET (Viet Tuan)

First half figure at $14.2 billion, with annual target at $30 billion.

by Ngoc Chi

Textiles and garments continued to see positive export growth in the first half of this year, increasing 10.6 per cent year-on-year to $14.2 billion, according to figures from the Ministry of Industry and Trade (MoIT).

The first-half figure, however, is a touch below what’s needed for the annual target of $30 billion to be reached.

Significant contributors to growth included fiber, with export turnover of $1.69 billion, up 27.4 per cent year-on-year, and garments, up 9.1 per cent to $11.84 billion.

The figures are remarkable given the unstable global economic conditions and Vietnam’s main textile importers, the US, the EU and Japan, seeing a slowdown in such imports in the first half, Mr. Le Tien Truong, CEO of the Vietnam National Textile and Garment Group (Vinatex), was quoted as saying.

Total textile and garment imports by the US fell 1 per cent, by the EU 2 per cent, and by Japan 0.6 per cent.

Vietnam’s export to those markets, however, grew handsomely in the first half. Exports to the US totaled $6 billion, up nearly 9 per cent, to the EU $2.3 billion, up 8 per cent, and to Japan $1.5 billion, up 12 per cent.

Despite the positive growth in the first half, the burden of reaching the annual target will increase over the course of the second half, according to insiders.

Vietnam earned $6.84 billion from garment and textile exports in the first quarter of this year, an 11.2 per cent increase year-on-year, according to the Vietnam Textile and Apparel Association (Vitas).

Vietnamese garment and textile products are now available in 40 countries and territories around the world, with major markets being the US, Japan, South Korea, China, and the EU. Vitas has urged enterprises to optimize capacity to reduce production costs and seek orders for high-quality products.

Many enterprises invested in building textile and dying factories on an extensive and intensive scale to boost their access to the opportunities that were to be presented by the Trans Pacific Partnership (TPP), according to the association.

But now that the future of the TPP is uncertain, with the US withdrawing, experts say these facilities can help the industry complete production processes and actively source material, focusing on opportunities offered by other FTAs such as those with the EU and with South Korea.

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