Want to be in the loop?
subscribe to
our notification
Business News
TEXTILE AND GARMENTS LIKELY TO HIT $40B IN EXPORTS THIS YEAR
Việt Nam’s textile and garment industry was likely to reach its target of US$40 billion in export turnover this year despite facing difficulties in some markets.
The statement was made by Cao Hữu Hiếu, managing director of the Việt Nam National Garment and Textile Group (Vinatex) after the industry reported export earnings of $29.3 billion in the first nine months of the year.
Hiếu said the result was due to the industry's efforts to overcome difficult global economic conditions. To achieve this figure, solutions had been implemented synchronously to remove difficulties, especially input prices which had dropped sharply due to the impacts of the trade war.
“After a quiet period, the fibre sector has started to prosper. Customers are showing more interest in it while the price has also recovered. We hope the market will correct itself over the next year and return to the highs seen in 2016-17,” Hiếu said.
With new-generation free trade agreements (FTAs) such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the EU-Việt Nam free trade agreement (EVFTA) which took effect this year, Vietnamese businesses will need to make efforts to take advantage of the preferences they offer.
Technology application is seen as a key factor to helping Việt Nam’s textile and garment industry to promote its business and expand its markets.
According to Hiếu, many Vinatex firms had invested in automatic cutting and spreading machines to replace workers, and in 3D design. Meanwhile, yarn and dyeing were also under pressure from the fast development of technology.
He said in the fashion industry, creativity was very important, so there are stages that machinery cannot replace humans. “A Vinatex survey of about 150 enterprises showed that employment opportunities within the industry over the next 10 years would still be high.”
“The domestic market is expected to earn $9 billion this year, so it's a massive sector. Besides, top global brands have already invested here, and Japan's Uniqlo will be arriving in 2020,” Hiếu said.
Under such pressure, he said the industry needed to find its own path for Vietnamese fashion to reach the domestic market
“Vinatex is focusing on Vietnamese designs with materials suitable for Vietnamese people and the industry, ensuring quality and reasonable prices and increasing competitiveness,” he added.
Many businesses have set up e-commerce systems deals or invested in their own online sales services to increase domestic market share.
Việt Tiến Company has invested in a fashion design centre, while Đức Giang Corporation has focused on building and developing its own brands such as Paul Downer, HeraDG and Forever Young.
Other enterprises such as Nhà Bè and May 10 are also offering fashionable products in various styles and categories to meet diverse consumption needs, ensuring quality and design to follow international trends.
According to economic experts, Việt Nam’s accession to a series of FTAs had increased the openness of the domestic market by 200 per cent. Along with efforts to improve domestic market share, authorities needed to create favourable conditions for enterprises to restructure, especially when it came to raising capital, expanding production, and improving technology and management to compete with foreign brands.
Source: VNS
Related News
CUSTOMS BUDGET REVENUE EXPERIENCES 3% DECLINE IN Q1
Vietnam’s import and export value reached a total of US$145.59 billion in the first quarter (Q1) of 2024, marking a year-on-year growth of 18.2%. However, the customs budget revenue saw a 3% year-on-year decline, amounting to VND71,520 billion in the quarter, thereby achieving 19.1% of the full-year target.
RAPID LAW IMPLEMENTATION MAY PROPEL MARKET FORTUNES
“Investors and developers are looking forward to the implementation of the new law, which will remove obstacles for a range of projects that are struggling due to stalled procedures and lack of legality. For them, the earlier the better,” he said.
NATION URGED TO BUILD ON ECO-IP MODEL
Industrial parks (IPs) involved in an initiative that aims to help push them into the realm of being classed as eco-parks have seen improvements across a string of indicators, according to a review event in Ho Chi Minh City last week.
YEN LU INDUSTRIAL PARK: NEW DESTINATION FOR INVESTORS
Bac Giang is a destination chosen by many domestic and foreign investors thanks to its locational advantages and its most opening and favorable investment policies. Assisted by local authorities, Capella Land Joint Stock Company has effectively invested in industrial zones, especially Yen Lu Industrial Park - a new destination for investors, to contribute to the province’s success in investment attraction.
DEMAND SOARS, POWER ECONOMY URGED
The serious electricity shortage in the northern region in May-June 2023 is a valuable lesson on the importance and pivotal role of ensuring electricity security for socioeconomic development.
OPTIMIZING LEGAL AND REGULATORY FRAMEWORKS FOR EFFICIENT PUBLIC INVESTMENT DISBURSEMENT
According to the Ministry of Planning and Investment, a 1% increase in public investment raises GDP by 0.058%, and each VND1 disbursed stimulates an extra VND1.61 from the non-state sector. However, plan implementation often falls short at around 80% annually, despite government efforts.