Production of garment merchandise at Duc Giang Garment Co, Ltd, Long Bien, Hanoi. Viet Nam needs to hit $40 billion in textile export turnover in 2019. VNA/VNS Photo Trần Việt

HÀ NỘI – The home textile and garment trade was nonetheless striving to succeed in its export income target of US$40 billion this yr regardless of dealing with many difficulties, mentioned Vũ Đức Giang, chairman of the Việt Nam Textile and Apparel Association (VITAS).

To obtain this target, the trade wants export worth development of no less than 11-12 per cent for the remaining of the yr, he mentioned.

According to the affiliation, development reached solely 9.1 per cent within the third quarter, a lot decrease than the identical interval in 2018. However, it was greater than different textile producers together with China, India and Bangladesh.

The affiliation is hoping textile enterprises will be capable of ship huge orders to push export worth up in December.

The most essential factor is for textile and garment enterprises to seek for markets and different companions. Currently, the companies can take benefit of the Vietnam-EU Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to advertise export growth to some markets within the EU in addition to Canada and Australia.

Canada holds a lot of potential for Việt Nam with import worth of textiles and clothes reaching greater than $13 billion every year, whereas Việt Nam’s textile and attire exports to this market attain solely about $550 million per yr.

Việt Nam doesn’t have a free commerce settlement (FTA) with Canada so the CPTPP opens the door for Việt Nam’s textile and attire merchandise. Businesses must seize this chance and search companions in Canada.

Thân Đức Việt, normal director of Garment 10 Corporation, mentioned to realize export success, enterprises wanted to remember of necessities on value, high quality, amount and manufacturing time. Moreover, they have to additionally guarantee manufacturing stability.

At the identical time, enterprises additionally wanted to cooperate with one another by means of affiliate programmes and assist from the affiliation to satisfy the principles of origin acknowledged in FTAs.

Enterprises, particularly small companies, ought to construct a manufacturing chain to satisfy the demand of giant contracts in phrases of amount, high quality and time of supply, in addition to to create a title for themselves.

In current years, the textile and garment trade had developed strongly and exports had grown yr by yr, in response to the affiliation. However, it nonetheless confronted many challenges in manufacturing and enterprise, reminiscent of low labour productiveness, lack of prime quality human assets and primarily processing merchandise slightly than manufacturing them.

In addition, challenges from export markets had additionally put strain on them, together with rising protectionism, greater high quality calls for, and atmosphere and technical checks.

According to VITAS, native attire producers have been dealing with falling export orders. Since mid 2019, some companies had been capable of signal export contracts for small portions every month. Meanwhile, in the identical interval final yr, many giant enterprises had export orders stacked up until the top of the yr.

Cao Hữu Hiếu, CEO of Việt Nam Textile and Garment Group (Vinatex), mentioned most textile and garment companies didn’t have sufficient orders to maintain them working till the top of the yr.

Large companies reminiscent of Garment 10 Corporation, Đức Giang Garment Joint Stock Company, Hòa Thọ Textile Garment Joint Stock Corporation, Hà Nội Textile and Garment Joint Stock Corporation (Hanosimex) had export contract to keep up manufacturing till November, however solely Việt Tiến Garment Joint Stock Company was going to be busy till the yr-finish.

Hiếu mentioned given the present scenario, the trade would discover it tough to succeed in the export target of $40 billion this yr. – VNS