The textile export to target US$ 34 billion positively

VCN- Talking to the reporter of Customs News, Mr. Truong Van Cam (photo), Vice President and Secretary General of Vietnam Textile and Apparel Association (Vitas) said: This year, the goal of textile export of US$ 34.5 billion was quite positive. However, the remaining quarters of the year as well as the next years, the sector would continue to face many difficulties because the shopping demand of consumers would not increase. 
the textile export to target us 34 billion positively
Mr. Truong Van Cam, Vice President and Secretary General of Vietnam Textile and Apparel Association (Vitas).

Based on the results of textile export achieved in the first quarter, what do you think about the prospects for the textile export of 2018?

When the world economy is forecasted to achieve higher growth than 2017 and the economic situation in the country continues to stabilize, GDP of the first quarter of 2018 reached 7.38%, the highest level compared to the same period of the last 10 years, the Vietnamese textile and apparel industry has had positive results. The total export turnover of textile and garment in the first quarter of 2018 is estimated at US$ 7.62 billion, up 13.35% over the same period last year, higher than the growth rate of 11.9% in the same period of 2017, completed 22.4% of the annual export plan.

For the export markets, the key export markets such as the United States, EU, South Korea, China, ASEAN... have increased strongly, the increasing speed is higher than the same period in 2017. The ordering situation of the enterprises is very positive. Many enterprises have received orders until the end of the third quarter. With positive prospects of the world economy as well as the country, the export plan of US$ 34 - 34.5 billion of the whole 2018 is quite satisfactory.

Besides the prospects and opportunities, what are the difficulties and challenges that the textile industry face, Dear Sir?

The internal challenge in the sector is the unbalanced development. The weakest stage is the upstream (spinning, weaving, dyeing). Currently, Vietnam has produced over 1.4 million tons of yarn per year and 90% has been exported. However, Vietnam imports quite large yarn amounts. Typically, in 2017, Vietnam imported 876 thousand tons of yarn, mainly from China, South Korea, Taiwan (China)... Source of fabric for export is also mainly import, accounting for over 80% of demand, in which, 50% of the total value from China, 18% from Korea and 15% from Taiwan, creating "bottlenecks" at textile dyeing. In addition, the export garment is mainly under the method of processing CMT; lack of high quality human resources for fiber, weaving, dyeing, design; Labor productivity has not been high yet ...

The typical external challenge is the free trade agreements (FTAs) that mostly apply rules of origin, while the Vietnamese textiles and garment import 80% of raw materials. In addition, at present, the EU is still applying 0% tax rate for the textiles imported from less developed countries such as Cambodia, Myanmar... The US is applying the preferential tax rate 0% for some commodities of Cambodia, meanwhile, the Vietnam's textile and garment industry still has to pay an average tax rate of 17.5% in the US market and 9.6% in the EU market.

Would you like to talk about the proposals of Vitas to help the textile export enterprises make good use of opportunities, develop more sustainable export in the coming time?

Vitas suggested the State should unify the planning and licensing of large textile and garment industrial zones in the northern, central and southern regions of Vietnam to call for and attract the investment in textile, dyeing sectors, to avoid overlap, and competition of labor recruitment; Support the investment of waste water treatment in these industrial zones.

In relation to import and export, the Ministry of Finance should study that the enterprises could use domestic fabrics to produce export goods without paying Value Added Tax, encouraging the enterprises use the domestic fabrics in order to be equal with the imported fabrics for processing to export. The domestic fabrics used for production, export to be exempted from tax would be based on the export contract signed with the customers to check, supervise, and avoid fraud.

For the localities, it is recommended not to attract the labor-intensive projects in order to avoid competition, creating big labor changes; At the same time, it is proposed that the provinces should facilitate the licensing of investment projects on textile and dyeing, should give priority to the enterprises investing in the modern waste water treatment technologies.

Thank you Sir!

By Uyen Nhu/ Binh Minh

Related News

Import and export turnover increases to US$ 51 billion

Import and export turnover increases to US$ 51 billion

VCN – Import-export turnover in June saw a slight decrease but remained at a high level, the General Department of Vietnam Customs announces.
Export of denim fabrics quickly recovers

Export of denim fabrics quickly recovers

VCN - The export market for Vietnam's denim products (the fabric used to make jeans) has experienced a swift recovery and positive growth potential. To anticipate this trend, businesses are actively investing in and expanding their factories to enhance production capacity and meet market demands.
Opportunities for Vietnam’s exports to Mercosur

Opportunities for Vietnam’s exports to Mercosur

VCN – Vietnam is promoting negations on the Free Trade Agreement (FTA) with the Southern Common Market (Mercosur) to leverage it as a driving force for exploring export markets in Latin America.
South Korea is Vietnam’s leading trading partner

South Korea is Vietnam’s leading trading partner

VCN – South Korea has maintained its position as largest trading partners of Vietnam for many years.

Latest News

Improving the competitiveness of businesses is an important factor

Improving the competitiveness of businesses is an important factor

VCN - Local competitiveness is not only based on economic management capacity, the favorable and friendly business environment and efforts to improve administrative reform efforts of provincial and city governments (PCI) but also relies on the competitiveness of local businesses.
Malaysia to boost exports to Vietnam

Malaysia to boost exports to Vietnam

The Malaysian Ministry of Investment, Trade and Industry (MITI) on July 11 announced that the country has secured potential exports worth 3.3 billion RM (about 717 million USD) to Vietnam.
Exporters advised to update trade policies of Singapore

Exporters advised to update trade policies of Singapore

The Vietnam Trade Office in Singapore has advised Vietnamese exporters to carefully study and keep updated on new regulations in Singapore, a market that is becoming more cautious in trade policy, in order to further exploit this market.
Green logistics – a key for sustainable development

Green logistics – a key for sustainable development

Green logistics development is no longer a trend, it is an inevitable requirement with activities throughout the stage of purchasing raw materials, production, distribution, delivery, waste treatment - throughout the entire business life cycle.

More News

Manufacturing enterprises need to adapt to trends to develop: experts

Manufacturing enterprises need to adapt to trends to develop: experts

Besides the factors of price, product quality and delivery time, green and sustainable development are competitive criteria that more and more markets are requiring from suppliers in Ho Chi Minh City as well as across the country.
Rubber exports grows sharply in June

Rubber exports grows sharply in June

VCN - According to Import – Export Tax Department (Ministry of Industry and Trade), Vietnam's rubber exports in June 2024 reached about 150 thousand tons, worth 238 million USD, up 77.6% in volume and 76.6% in value. Price compared to May 2024.
Prioritize stimulating domestic consumption to promote economic growth in 2024

Prioritize stimulating domestic consumption to promote economic growth in 2024

VCN - According to General Director of the General Statistics Office Nguyen Thi Huong, in the context of many difficulties in the world economy, the export growth rate is slowing down, many businesses are facing a shortage of orders..., priority should be given to stimulating demand. Domestic consumption is considered an important solution to promote economic growth in 2024.
Exports fruit and vegetable expects to exceed US$ 7 billion

Exports fruit and vegetable expects to exceed US$ 7 billion

VCN - In the first half of 2024, fruit and vegetable export turnover reached nearly US$3.5 billion. Key markets recorded an increase of 10-50% over the same period in 2023. This is also the industry that holds the leading position in exports of agricultural products.
Việt Nam, Philippines agree to establish a rice industry alliance

Việt Nam, Philippines agree to establish a rice industry alliance

Agriculture ministers of Việt Nam and the Philippines agreed to establish a rice industry alliance between the two countries and upgrade the trade relationship into an investment partnership.
"Good oppotunities" for export to Asia - Africa markets

"Good oppotunities" for export to Asia - Africa markets

VCN - The Asia-Africa region is always an important market for Vietnam. These are two markets considered suitable for Vietnamese goods, including the Red River Delta, to expand their market share in the near future.
Ample space for Vietnam to boost exports to the US, experts

Ample space for Vietnam to boost exports to the US, experts

Vietnamese exports to the United States (US) such as computers and parts, electronics, machinery and equipment, garments and footwear have ample room to grow, according to trade experts.
High quality, low-emission rice project's pilot model in Mekong Delta yielded positive results

High quality, low-emission rice project's pilot model in Mekong Delta yielded positive results

A pilot model for planting millions of hectares of high-quality, low-emission rice in the Mekong Delta has yielded positive results, including reducing the amount of seed and fertiliser used, lowering carbon dioxide (CO2) emissions while increasing profits.
June seafood exports hit yearly high

June seafood exports hit yearly high

VCN - Seafood exports for June 2024 are estimated to have reached $875 million, marking a 14% increase compared to the same period last year and the highest monthly export value since the beginning of 2024.
Read More

Your care

Latest Most read
Improving the competitiveness of businesses is an important factor

Improving the competitiveness of businesses is an important factor

VCN - Local competitiveness is not only based on economic management capacity, the favorable and friendly business environment and efforts to improve administrative reform efforts of provincial and city governments (PCI) but also relies on the competitive
Malaysia to boost exports to Vietnam

Malaysia to boost exports to Vietnam

The Malaysian Ministry of Investment, Trade and Industry (MITI) on July 11 announced that the country has secured potential exports worth 3.3 billion RM (about 717 million USD) to Vietnam.
Exporters advised to update trade policies of Singapore

Exporters advised to update trade policies of Singapore

The Vietnam Trade Office in Singapore has advised Vietnamese exporters to carefully study and keep updated on new regulations in Singapore, a market that is becoming more cautious in trade policy, in order to further exploit this market.
Import and export turnover increases to US$ 51 billion

Import and export turnover increases to US$ 51 billion

VCN - In June, Vietnam’s total import and export turnover declined 1.3% month-on-month to US$ 64.12 billion.
Green logistics – a key for sustainable development

Green logistics – a key for sustainable development

Green logistics development is no longer a trend, it is an inevitable requirement with activities throughout the stage of purchasing raw materials, production, distribution, delivery, waste treatment - throughout the entire business life cycle.
Mobile Version