Vietnam Textile And Garment Targeted
9.5 Billion USD For 2008
November 19, 2008
According to Mr. Le Quoc An, President of Vietnam Textile and Apparel Association, the garment and textile industry is hopefully on target for exporting 9.5 billion USD in 2008 and expected to reach 25 billion USD in 2020. Vietnam Textile and Garment industry has achieved plan the first 6 months of the year 2008, however, enterprises are experiencing difficulties.
"This goal is very ambitious but also very feasible. At present, textile and garment industry of Vietnam is still evaluating the potential for strong development in the next 10-20 years. The speed of development will depend on large and capable enterprises and the country infrastructure. But we believe this could be a reality "- Mr. An said.
At present, the trend of transferring investment and commercial textiles from Central American region, South America, South Africa, Eastern, Western and Southern Europe to the Asian countries is quite remarkable. Vietnam is a country with advantages in attracting investment textiles. However, the competition among Asian countries is also very intense. In addition, the technical barriers on trade are as much a major challenge for Vietnamese textile and apparel.
The Association of Vietnamese Textile and Apparel held a meeting on September 30 of this year and gave out 2008 industry awards to successful enterprises. This was the 5th time the conference was held with the participation of 315 domestic enterprises.
Of the 51 enterprises being awarded in Vietnam textile and garment industry, there were 10 major players in the overall achievement category: General Corporation, Viet Tien Garment, Viet Thang Garment, Coats Phong Phu Garment, Tien Tien Garment, Garment number 10 Co., Nha Be Garment, Scavi, Tho Hoa Garment, Sai Gon 3 Garment, and Thai Tuan Textiles.
According to Mr. An, the first 6 months of 2008, export turnover of garment and textile industry reached 4.2 billion USD, with 44.21% of the plan set out the whole year 2008 is 9.5 billion, and achieved growth of 20%.
However, enterprises are facing many difficulties, such as requesting loans from banks and finding skilled worker. The country has experienced some labor shortage and companies have to deal with strikes as a reality, more often than not.
Vietnam banks are now tightened credit to enterprises making it more difficult to borrow, at the same time interest rates are too high. In addition, prices of raw material have increased, but garment products cannot be increased.
Textile and garment export volume has contributed the largest share of export turnover for the country, about 15% of Vietnam total export value. The sector absorbed 5% of Vietnam labor force, about 1.2 million workers, and has the potential to create 100,000 jobs annually.
To achieve the planned of 2008, the enterprises continue to search and expand into new markets outside the U.S. and Europe. There have been some significant successes. Companies such as Thai Tuan, Thai Thinh has found the Middle East new markets in the Middle East, Eastern Europe, South America, and Africa.
