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Garment producers looking to improve localization ratio
17 Dec '09
2 min read
Vietnam has exported $8.2 billion worth of garment products till the end of November. Total garment exports for the current year are expected to reach US $9.1 billion, same as previous year, said Mr. Le Tien Truong, Deputy General Director of the Vietnam Textile and Garment Group (Vinatex). The Deputy Minister of Industry and Trade, Mr. Bui Xuan Khu had earlier estimated that this year garment exports would bring in $9.2 billion.
This year, the export prices were lower than the prices in 2008. In the first 11 months of 2009, prices of garment products, shipped to the US, witnessed 18 percent fall. So, the export revenue generated from garment items plunged down by 40 percent though the export quantity increased by 13-14 percent. This year, the country recorded highest localization ratio of garment products i.e. of 42-43 percent, which was 37 percent in 2008.
Vietnam imported $4.7 billion worth of materials and exported $8.2 billion worth of garment items during first 11 months of 2009. Garment exports to Japan increased by 16 to 17 percent. This improvement in exports has pleased the garment producers, who have been able to enjoy tax preferences under the Vietnam - Japan Economic Partnership Agreement (VJEPA) along with which they also have a high localization ratio of raw materials.
Mr. Truong underlined that the country has been paying special attention to the three programs on fabric, cotton, and training development as increasing domestic inputs in garment products is always the key issue in the garment development plan.
Country increased the area under cotton crop by 8,000 hectares in the year 2009 and the cotton crop has been witnessing price hike in global market. This offered profit to the cotton growers who are selling cotton between 29,000 and 32,000 Vietnam Dong per kilo.
This year, the export prices were lower than the prices in 2008. In the first 11 months of 2009, prices of garment products, shipped to the US, witnessed 18 percent fall. So, the export revenue generated from garment items plunged down by 40 percent though the export quantity increased by 13-14 percent. This year, the country recorded highest localization ratio of garment products i.e. of 42-43 percent, which was 37 percent in 2008.
Vietnam imported $4.7 billion worth of materials and exported $8.2 billion worth of garment items during first 11 months of 2009. Garment exports to Japan increased by 16 to 17 percent. This improvement in exports has pleased the garment producers, who have been able to enjoy tax preferences under the Vietnam - Japan Economic Partnership Agreement (VJEPA) along with which they also have a high localization ratio of raw materials.
Mr. Truong underlined that the country has been paying special attention to the three programs on fabric, cotton, and training development as increasing domestic inputs in garment products is always the key issue in the garment development plan.
Country increased the area under cotton crop by 8,000 hectares in the year 2009 and the cotton crop has been witnessing price hike in global market. This offered profit to the cotton growers who are selling cotton between 29,000 and 32,000 Vietnam Dong per kilo.
Fibre2fashion News Desk - India
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