ASEAN KEY DESTINATIONS
Vietnamese textiles thrive
The volume of apparel orders and prices has increased, catapulting Vietnam to among the five largest countries in apparel export revenue. This means that the Vietnamese garment and textile sector will be able to realize the target of exporting US$12.5-13 billion of apparel products.
In the first two months of this year, the export revenue of the garment and textile sector reached a record high of US$2.2 billion, an increase of 54.2 percent from the same months of last year. Apart from an increase of export volume, the apparel price rose 20 percent. Domestic garment and textile companies such as the Viet Tien Garment Joint Stock Corporation, Garment 10 Joint Stock Company and Nha Be Corporation have obtained orders until the end of the third quarter of this year.
Pham Xuan Hong, the Deputy Chairman of Vietnam Textile & Apparel Association (VITAS) and the chairman of the Ho Chi Minh City Association of Garment, Textile, Embroidery and Knitting, said that from January 2011, most of the businesses in the association have booked orders through the second and third quarters of 2011. At present, the price of materials, electricity, labor and transport costs have considerably increased. This requires businesses to be more cautious when calculating prices and making efforts to reduce other production costs to guarantee increased business efficiency. Material importers have negotiated reduced prices, helping domestic producers overcome difficulties.
Furthermore, garment and textile businesses have seen successes in major export markets of the US, the EU and Japan. In 2010, the sector reached an export value of nearly US$11.2 billion with export value to the US accounting for US$6 billion, an increase of 22 percent compared to 2009. VITAS estimated that in 2011, Vietnamese apparel market share in the US will increase by 4.6-5.1 percent.
Vietnamese businesses faced a lot of challenges in the EU, however they still experienced a growth of 18 percent in export value from last year to US$1.8 billion. It is estimated that Vietnamese garment and textile sector will have many development opportunities in this market in the few next years.
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