ASEAN KEY DESTINATIONS
Vietnam: Garment exports seen rising on price competitiveness
To maintain global competitiveness, 65 percent of garment suppliers would keep export price hikes below 5 percent until the end of this year, and 48 per cent expect to maintain export quotas, according to the survey.
Industry experts who were interviewed for the survey said there was a general sense of optimism, especially as demand from key markets like the US is expected to increase in the near future.
Vietnam is one of the world’s most important supply centres of garments, with a large number of well-established international apparel and retail brands sourced from its factories.
Vietnam also boasts an expansive pool of skilled workers and automated manufacturing facilities that use equipment imported from Japan, Taiwan and South Korea, according to the Kearny Alliance report.
The country ranks as the fifth-largest exporter of clothing in the world, according to figures from the World Trade Organisation. Of all outbound shipments from the country, garments account for about 15 percent.
Brisk domestic and foreign demand has helped the garment industry become the second-largest export earner for Vietnam, after crude oil.
According to the government’s figures, the country shipped more than $9 billion worth of garments and textiles to overseas destinations in 2010, showing an 18 percent growth compared to the previous year.
Of many overseas destinations, the US remains the largest export market for Vietnam, accounting for more than 56 percent of sales this year.