Vietnam’s textile industry is eyeing export growth to US$40m in 2019, a rise of 10.8% on the year before – thanks to the highly competitive nature of the Vietnamese products and higher investments in the textile and dyeing industry.
Vietnam Textile and Apparel Association (Vitas) chairman, Vu Duc Giang, said despite global economic turbulence, Vietnamese textile firms have witnessed positive signals for orders in 2019, according to Vietnam Net.
Many businesses have received higher orders for the first half of the year, prompting Vitas to set a target of US$40bn in export turnover. The sector is expected to enjoy a trade surplus of US$20bn and create employment and increase income for 2.85m workers.
Vinatex, one of Vietnam’s largest textile and clothing groups, recently said its own full-year exports were up 10.9% on the year-ago period to US$3.05m.
Vinatex managing director, Cao Huu Hieu, said the company, like the wider apparel industry, had benefitted from a production shift from China to neighbouring countries as a result of the ongoing US-China trade spat; and because local vendors are becoming more responsive to buyer demands for more sustainable production methods.
Vietnam is one country widely expected to be one of the biggest beneficiaries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) – or TPP-11 – which came into effect earlier this month. Many of the original TPP provisions remain intact in CPTPP, with customs duties on 95% of trade in goods due to be removed, including all textiles and apparel. Some products will see immediate duty-free treatment, while tariffs on other goods will be lowered gradually over a number of years until being eliminated entirely. The full schedule can be accessed in the re:source by just-style strategic planning tool.