Domestic garment and textile industry sees positive signs

14-Apr-2021 Intellasia | VNS | 5:02 AM Print This Post

The country’s garment and textile exports have seen recovery with turnover of $7.2 billion in the first quarter of the year, slightly increasing 1.1 per cent from the same period last year, according to the Ministry of Industry and Trade (MoIT).

Although this was not a big increase, the result demonstrates positive signs for the sector. The local garment and textile businesses have found a suitable direction despite the impact of the COVID-19 pandemic. The global textile, garment and footwear market has gradually become active again as many countries have provided COVID-19 vaccines to people, contributing to promote consumption demand.

Vu Duc Giang, chair of the Vietnam Textile and Apparel Association (VITAS), said the recovery of Vietnam’s textile and apparel industry in 2021 has been forecasted by many experts and organisations. This recovery was firstly due to the efforts of the government and the MoIT in policies and moves to support the implementation of trade promotion, market research and commodity trading.

In addition, the impacts from Free Trade Agreements (FTAs) that Vietnam has signed, such as the EVFTA and RCEP have created favourable conditions for textile enterprises to easily exploit the benefits of the FTAs and promote regional production chains, especially in rules of origin and trade facilitation.

The initial export recovery of Vietnam’s textile and apparel sector has opened up positive signs for the second quarter of 2021. Currently, many textile and garment firms have signed orders until the end of the year, Giang said.

However, the ministry said the complicated developments of the COVID-19 pandemic around the world may cause problems in transporting goods, affecting Vietnam’s exports in general and textiles in particular.

The MoIT would help firms exploit and take advantage of opportunities from FTAs to find solutions to develop markets. It would continue to closely monitor developments of the COVID-19 pandemic in the world to take response measures.

It would prioritise export promotion activities to markets which recover soon after the pandemic while highlighting products with high import demand.

Le Tien Truong, chair of the Vietnam National Textile and Garment Group (Vinatex), said in the first half of the year, the market would have high demand for essential goods with relatively cheap prices.

Vinatex has big and reputable enterprises. When the market recovers, its subsidiaries will have orders.

Truong said some of its traditional importers faced difficulties in 2020, especially in the US market where more than 10 major brands had to close.

“However, in the first two months of the year, Vinatex caught up with the market demand, especially the yarn industry, with a growth rate of 41 per cent. In the rest of 2021, we have striven to improve efficiency, but may not be able to return to the same export turnover in 2019. We targeted a growth rate of 30 — 35 per cent higher than last year,” he added.

http://bizhub.vn/news/domestic-garment-and-textile-industry-sees-positive-signs_323589.html

 

Category: Business, Vietnam

Print This Post

Leave a Reply

You must be logged in to post a comment.