Want to be in the loop?
subscribe to
our notification
Business News
FTAS FOSTER APPAREL AND FOOTWEAR EXPORTS
Vietnam's textile and garment industry have made great progress and managed to take advantage of free trade agreements (FTAs) such as Vietnam - Korea FTA, Vietnam-Eurasian Economic Union FTA (Vietnam - EAEU FTA), Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and European-Vietnam FTA (EVFTA), according to a report released by the Ministry of Industry and Trade.
Vietnam's textile and garment export turnover reached US$28.1 billion in 2016 and soared to US$38.9 billion in 2019, an average growth of 9.55%.
In particular, the trade surplus increased rapidly, from US$11.1 billion in 2016 to US$16.9 billion in 2019. Vietnam's textile and garment export value ranked fourth in the world in 2016 after China, Bangladesh and India and ranked third in 2019 after surpassing India.
In 2020, due negative impacts of the Covid-19 pandemic from both supply and demand sides, the textile and garment industry was one of the most affected industries along with the tourism, aviation, and footwear industries. Given weakening consumer demand in the United States and Europe amid restriction measures to curb the pandemic, Vietnam’s textile and garment export was hard hit. The U.S. and European markets accounted for about 45% and 18% of Vietnam’s textile and garment export value, respectively.
The export value of the textile and garment industry declined 9.29% year on year to an estimated US$35.27 billion in 2020. This was indeed a good performance level given that the total world textile and apparel demand shrank by 25%.
In 2020, the leather and footwear industry also faced numerous difficulties because of Covid-19 pandemic impacts, especially when the pandemic developed complicatedly in major importers of Vietnamese footwear like the U.S. and the EU (accounting or 36% and 27% of Vietnam's footwear export value, respectively).
Vietnam's footwear and handbag exports valued US$22 billion in 2019 (up 12% over 2018) but declined to US$20 billion in 2020 due to the Covid-19 pandemic.
To restore and develop the textile and garment industry, in the coming time, the Ministry of Industry and Trade will carry out trade promotion and export support programs and diversify export markets, avoid risks and ensure rules of origin imposed by FTAs. It will support enterprises to find, connect and expand markets, give priority to tapping domestic consumption demand and avoid dependence on a single market.
The ministry will build and implement the garment and footwear industry development strategy to 2030, with a vision to 2035; work out the program on sustainable development of the garment and footwear industries in 2021-2030 in order to remove input supply bottlenecks, support human resource training, and apply Technology 4.0 to product design, and make the most effective use of new-generation FTAs such as EVFTA and CPTPP.
For the leather and footwear sector, the ministry will focus on solving internal difficulties, maintaining the export market in line with developing the domestic market and expanding sales channels to tap the domestic market. It will strengthen trade promotion programs for Vietnamese footwear products in the U.S. and EU markets and keep track of market developments to capture information in order to adjust production and business directions in a timely manner.
Source: VCCI
Related News
VN SHOULD FOCUS ON DEEPER INTEGRATION INTO THE GLOBAL SUPPLY CHAIN NETWORK
As international businesses look to create new links in the global supply chain, Việt Nam, as well as the rest of the Southeast Asia region, can emerge as a major destination for foreign direct investment (FDI), said economists and policymakers.
VIETNAM’S TEXTILE SECTOR AIMS FOR US$44 BILLION EXPORTS
Vietnam’s textile and garment industry is ramping up production in the final months of 2024 to reach its export target of US$44 billion, according to the Ministry of Industry and Trade. Textile production in September increased by a marginal 0.1% against the previous month but surged by 11.2% year-on-year.
DEX CONNEX VIETNAM 2024: UNLOCK BUSINESS OPPORTUNITIES WITH MALAYSIA'S LEADING TECH COMPANIES
On behalf of Sunwah Group Vietnam and Sunwah Innovations, in collaboration with the Malaysia Digital Economy Corporation (MDEC), we are delighted to cordially invite you to participate in DEX Connex Vietnam 2024 on Thursday, 14 November 2024 in Ho Chi Minh City.
VIETNAM MAY BE ONE OF THE FASTEST-GROWING EMERGING MARKETS BY 2035
The S&P Global Look Forward Journal, titled "Emerging Markets: A Decisive Decade", which considers the opportunities and challenges the next decade will bring for emerging markets' economic growth in terms of energy transition, supply chain integration, and labour productivity.
YEN BAI INDUSTRIAL ZONES AUTHORITY BOOSTING INVESTMENT PROMOTION AND ATTRACTION
The Yen Bai Industrial Zones Authority has actively diversified investment promotion and attraction forms for local industrial zones and achieved positive outcomes in recent years, helping improve the vibrant, high-quality and effective investment and business climate in local industrial zones.
NON-BANK CORPORATE BONDS FORECAST TO RECOVER IN YEAR-END MONTHS
Under an October 2024 corporate bond market report released recently, analysts of the rating agency FiinRatings said that the US Federal Reserve (Fed)'s first interest rate cut in four years was a positive sign for the Vietnamese exchange rate, after the State Bank of Vietnam (SBV) continuously sold the US dollar due to high capital withdrawal demand.