Vietnam’s textile and garment sector is hoped to make breakthroughs in 2019 and sets target US$200bn garment, textile exports by 2035 based on successes and momentum last year.
The Vietnam Textile and Apparel Association (VITAS) has set a target of $40 billion in export turnover for the calendar year 2019, 10.8 percent higher than the $36 billion in 2018, which was a 16 percent rise year-on-year. The country’s garment and textile exports are also forecast to hit US$200 billion by 2035.
Experts said that in 2019, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) is hoped to create a boost for many industries of Vietnam, including the textile and garment sector. In addition, the textile and garment sector is also waiting for more orders shifted from China to Vietnam due to the US-China trade war.
Many businesses have already received orders for the next first six months of 2019 and even the whole year. Vietnam’s products are highly competitive and the country gradually completed the textile supply chain because flows of capital investment in the textile and dyeing industry, and material have been on the rise.
According to the Ministry of Industry and Trade, 2019 will continue to be a challenging year for the sector to integrate into the global textile supply chain.
Especially, the fourth industrial revolution will have great impacts on the textile and garment industry in the coming time, forcing it to change and strongly increase investment in equipment and personnel.
Many consumers now require origin certifications and environmentally-friendly products, so textile and garment enterprises need to ensure global standards of materials to ensure the health of customers.
Many experts feel the garment sector has great potential for development from now to 2035. The sector should make thorough preparations to fulfill the target of US$200 billion in export value by 2035.
The domestic material consumption rate should be raised, aiming at 80% of fibers and 60-65% of other materials by 2030-2035.
According to VITAS, with further investment in fiber production, Vietnam is now less dependent on materials from China. Domestic materials can meet 40-45% of the sector’s demand while the rest is imported from China (37%), Japan, Indonesia, the Republic of Korea and Thailand.