Vietnam's garment exports set to rise in first half

22 Jun '12

2 min read

Vietnam’s garment and textiles export is expected to touch US$ 7.5 billion during the first six months of the current year, which would be a six percent year-on-year rise, according to Vietnam National Textile and Garment Group (Vinatex).

The quantity of apparel exports from Vietnam has increased by 12 percent year-on-year during the first five months of current year, mainly owing to lower prices.

The rise in volume of exports is reflective of the efforts put in by the textile and apparel industry in spite of global economic slump, Vinatex Deputy Director-General, Le Tien Truong, said while addressing an online conference organized by Vinatex in Ha Noi, Da Nang and HCM City.

The drop in prices of textile and garment items resulted from the ongoing declining trend noticed in prices of most of the commodities on world market.

There has also been a drop in prices of raw inputs for production of garments. For example, the price of cotton has currently dropped to around US$ 1.70 per kg from US$ 3.90 per kg towards 2011-end.

While exports to the US continued to grow at a steady rate of 15 percent during the first five months of current year, exports to Japan and South Korea grew at a rate of 23 percent and 26 percent, respectively, Mr. Truong said.

Realizing the potential of the South Korean market, Mr. Truong expressed optimism that Vietnam’s clothing exports to South Korea could increase to US$ 1 billion by year-end.

However, he said the sector’s earnings have been adversely hit by slump in the European market, key importer of Vietnamese textiles and apparels. Usually, around 17 percent of Vietnam’s apparel exports are towards Europe.

Vietnam has set textile and garment export target of US$ 7.5 billion during the first six months of the current year.

Fibre2fashion News Desk - India

More Apparel/Garments News - Vietnam...