Vietnam garment sector may miss US$17bn export target

07 Dec '12

2 min read

It is doubtful whether the Vietnam textile and garment industry would be able to achieve its export target of US$ 17 billion set for the current year, the Vietnam Garment and Apparel Association (Vitas) has said.

With a month-on-month decline of 3.4 percent, Vietnam’s textile and apparel export turnover for November dipped to US$ 1.3 billion.

Thus, during the first eleven months till November, Vietnam has exported textiles and clothing items worth US$ 13.78 billion, which casts a doubt on achieving the US$ 17 billion target set for the current year, Vitas Vice Chairman Pham Xuan Hong said.

The Vitas official said that a major fall has been noted in the country’s exports to key markets this year. Exports to the EU declined by about 15 percent compared to last year and the declining trend is likely to continue even in the next year, the Viet Nam News reported.

Another reason for low revenues is that customers shifted their focus from high-end items to mid-range products to cut expenses.

Vitas suggested that rather than relying on traditional markets, exporters should try to get new customers and should focus on exploring opportunities in other countries such as Japan, South Korea and the US.

The association, however, anticipates a rise in fibre exports to Turkey, Africa, China and the Middle East, which is expected to boost the sector’s earnings in 2013.

Moreover, several Japanese buyers have inked deals with Vietnamese manufacturers, which will boost Vietnamese exports to Japan, next year.

Meanwhile, the Ministry of Industry and Trade has launched trade promotion programmes in Thailand, Malaysia and Hong Kong to aid domestic firms increase their exports to these markets.

Fibre2fashion News Desk - India

More Vietnam Textile and Garment Association (VITAS) News... More Apparel/Garments News - Vietnam...