Vietnam’s textile and garment sector saw its exports increase over 17% in the first nine months of the year, according to new figures.
Textile and garment exports were valued at US$22.56bn in the period, according to data from Vietnam’s Ministry of Industry and Trade, representing growth of 17.1% on last year. The main export markets of the Vietnamese textile industry are the US, the EU, Korea, China and the Comprehensive and Progressive Agreement for TPP (CPTPP) – or TPP-11 – countries.
The figures, published by Vietnam’s National Textile and Garment Group (Vinatex) following a Ministry press conference, show the country’s industrial production index is estimated to increase by 10.6% in the nine-month period; the highest growth since 2012.
Manufacturing continued to be the bright spot of the industrial sector and the main engine of economic growth with an increase of about 12.65%.
Deputy Minister for Industry and Trade, Do Thang Hai, said trade and industry during the first nine months of the year achieved “remarkable results”, making a positive contribution to the national economy.
Total export turnover was estimated at $178.91bn, up 15.4% over the same period of 2017. Major contributors were telephones, computers and components, and textiles.
Vietnam is the world’s third largest clothing exporter, and has benefited as producers and buyers diversify their supply chains, helped by its low labour costs and industry focus on specialisation, modernisation, and increasing value added.
According to an overview of Vietnam on re:source by just-style, a new online strategic planning tool, it stands to gain from duty-free access to the EU market once the EU-Vietnam free trade agreement comes into force, and is widely expected to be one of the biggest beneficiaries of the Comprehensive and Progressive Pacific Partnership (CPTPP) free trade deal. Increased foreign direct investment – particularly in spinning and weaving – has pushed the country into the world’s top ten textile exporters.