According to the Vietnam Textile and Apparel Association (VITAS), Vietnam textile and garment industry, aiming to earn 60 billion USD from exports by 2025.
Last year, the textile and garment industry earned 36 billion USD in exports, up 16% year-on-year, making the country one of the world’s three biggest exporters of textiles and apparel, said VITAS.
Speaking at the 2019 Global Textile and Apparel Supply Chain Conference held in Ho Chi Minh City recently, Vu Duc Giang, VITAS Chairman, said this year the association set a target of 40 billion USD in exports, up 11% year-on-year.
The industry was expected to enjoy a trade surplus of 20 billion USD, and employ 2.85 million workers.
Textile enterprises have seen positive signs for orders this year. “Many businesses have already received orders for the first six months of 2019 and even for the entire year,” said Vu Duc Giang.
This year, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is expected to boost the development of many industries of Vietnam, including the textile and apparel industry. The industry is also expecting more orders to shift from China to Vietnam due to the ongoing US-China trade war.
Vietnam is participating in 16 FTAs. Ten out of 12 signed agreements have been enforced, including the ASEAN Trade in Goods Agreement, the ASEAN-China FTA and the ASEAN-Korea FTA, while the two remainings, the CPTPP and the ASEAN-Hong Kong FTA, have not yet come into force.
Participation in various FTAs could help Vietnamese enterprises have more choices in exporting their products, but it also brings challenges to the industry, according to VITAS. The FTAs that Vietnam has signed all have environmental barriers with higher green standards, which require enterprises to improve not only product quality but also production processes.
If enterprises fail to do this, they will face a risk of having orders stopped or rejected, especially orders from major international garment brands.
Giang recommended that Vietnam should continue its efforts to ensure environmental protection in manufacturing to become a ‘sustainable supplier of choice’ of textile and apparel.
The country has committed to fully implementing 17 goals of the 2030 Agenda for Sustainable Development to ensure economic, social and environmental benefits, according to Giang.