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Vietnamese apparel makers focus largely on exports
Feb '16
The major focus of apparel manufacturing units in Vietnam is on exports and they are not paying the same attention to the domestic market, according to media reports.

Only around 19 per cent of the total garment producers in Vietnam are planning an expansion within the country, targeting only the big cities. Only around 30 per cent of the total production capacity is allocated for domestic consumption, according to Vietnam Textile and Garment Group (Vinatex).

On the other hand, Vietnamese textile and garment exports have risen by 5.8 per cent in January 2016 year-on-year to $2 billion. With the implementation of TPP, exports will become more lucrative for garment makers owing to zero duty.

The garment industry in Vietnam has set an export target of $30 billion for 2016, which is a rise of 10 per cent as compared to the previous year. Many export houses have already secured enough orders for the year to meet their export targets.

Despite the domestic market growing at a rate of 10 to 15 per cent every year, garment producers remain pessimistic about the domestic garment market. (MCJ)

Fibre2Fashion News Desk - India

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