Off target, textile industry sustains growth

09 Dec '05

2 min read

Vietnamese textile and garment industry is estimated to earn US $4.82 billion by way of exports this year, registering 10 percent increase over last year.

Yet, there are no hopes of meeting the full year targeted export value pegged between $5.2-5.4 billion as it has earned only $4.32 billion till November end.

Chairman of the Vietnam Textile and Garment Association, Le Quoc An announced that with regard to the US markets, the categories controlled by quotas will reach export value of $1.62 billion, a 6 percent rise.

Non - quotas categories will go up 9 percent at $1.02 billion.

Overall export earnings from the US markets will be $2.46 billion that is up 6.5 percent.

The EU export market will grow 15 percent reaching $875 million, while for Japan, it will be $405 million, up 14 percent.

Le Quoc An also commented on the rapid growth of non-quota exports adding that most of the categories have registered considerable rise.

Clothing products from Vietnam offer better competition to those.

Le Quoc An said that since China and the US have signed a textile agreement, competition will become tougher next year.

He commented that their traditional rivals China and India are very strong while acknowledging the drawbacks of Vietnamese and resolvng them or else it would face tough situation in the global markets.

Diep Thanh Kiet, Vice Chairman of the Ho Chi Minh City Textile, Garment, Embroidery Association said businesses should not depend too much on quota markets as only $1.6 billion out of $4.8 billion worth textile exports this year was accounted for from quota markets.

Manufacturers feel there should be an improvement in state management over textile and garment industry, while they need to carry out reforms in terms of quality, product mix and technology to keep abrest with the competition.

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