Vietnam’s garment and textile sector earns 18 billion USD from exports, representing 8.61 percent year-on-year increase (Photo: phapluatxahoi.vn) Hanoi (VNA)- Vietnam spent almost 11.4 billion USD to import materials for garment andtextile production in the first half of the year, up 5.6 percent from the sameperiod last year, according to the Vietnam Textile and ApparelAssociation (VITAS).
Cotton importsreached 1.52 billion USD, fibre 1.23 billion USD, fabric 6.75 billion USD andauxiliary materials 1.89 billion USD.
VITAS said in the sixmonths, the world economy slowed down due to political fluctuations andconflicts, especially protection policies and escalating trade war.
This hassignificantly affected exports of textile and garment products, especially theyarn industry as inventories in some businesses have increased sharply,according to VITAS.
The country’s garmentand textile sector earned 18 billion USD from exports, an 8.6 percentyear-on-year increase.
The figure included 14.02billion USD of clothing and 1.02 billion USD of fabrics, up 8.7 percentand 30 percent respectively.
Local garment andtextile producers have faced challenges in production and trading.
VITAS Vice PresidentTruong Van Cam said the number of orders in the first half of 2019 wasequivalent to 70 percent of the figure in the same period last year. Inparticular, consumption of yarn and raw materials faced many difficultiesbecause the main export market China cut import volume. Meanwhile, garmentproducts also experienced a drop in orders.
In 2018, by themiddle of the year, many large enterprises in the industry had orders until theend of the year, but they now have orders with small quantities and signed bymonth. Many big buyers across the world are concerned that the US-China tradewar will escalate, so orders are divided into small ones instead of largequantities.
The US remained thebiggest buyer, accounting for 47 percent of total orders. It was followed bymember states of the Comprehensive and Progressive Agreement for Trans-PacificPartnership (CPTPP) with 17 percent, the EU at 13 percent and the Republic ofKorea with 9 percent.
Pham Xuan Hong, Chairmanof the HCM City Textile and Garment – Embroidery Association said export growthof 8.61 percent in the first half of the year was low compared with that of2018, due to a lack of labourers and increasing production costs.
According to theMinistry of Planning and Investment, the EVFTA would help the export turnoverof Vietnam to the EU increase by 20 percent by 2020; 42.7 percent by 2025and 44.37 percent by 2030. However, the agreement was signed in June and it'sunclear when it will take effect.
Experts said tomaximise benefits of the EVFTA, the country should pay attention to developingthe weaving and support industry for the garment and textile sector to reducedependency on imported materials.-VNA
Cotton importsreached 1.52 billion USD, fibre 1.23 billion USD, fabric 6.75 billion USD andauxiliary materials 1.89 billion USD.
VITAS said in the sixmonths, the world economy slowed down due to political fluctuations andconflicts, especially protection policies and escalating trade war.
This hassignificantly affected exports of textile and garment products, especially theyarn industry as inventories in some businesses have increased sharply,according to VITAS.
The country’s garmentand textile sector earned 18 billion USD from exports, an 8.6 percentyear-on-year increase.
The figure included 14.02billion USD of clothing and 1.02 billion USD of fabrics, up 8.7 percentand 30 percent respectively.
Local garment andtextile producers have faced challenges in production and trading.
VITAS Vice PresidentTruong Van Cam said the number of orders in the first half of 2019 wasequivalent to 70 percent of the figure in the same period last year. Inparticular, consumption of yarn and raw materials faced many difficultiesbecause the main export market China cut import volume. Meanwhile, garmentproducts also experienced a drop in orders.
In 2018, by themiddle of the year, many large enterprises in the industry had orders until theend of the year, but they now have orders with small quantities and signed bymonth. Many big buyers across the world are concerned that the US-China tradewar will escalate, so orders are divided into small ones instead of largequantities.
The US remained thebiggest buyer, accounting for 47 percent of total orders. It was followed bymember states of the Comprehensive and Progressive Agreement for Trans-PacificPartnership (CPTPP) with 17 percent, the EU at 13 percent and the Republic ofKorea with 9 percent.
Pham Xuan Hong, Chairmanof the HCM City Textile and Garment – Embroidery Association said export growthof 8.61 percent in the first half of the year was low compared with that of2018, due to a lack of labourers and increasing production costs.
According to theMinistry of Planning and Investment, the EVFTA would help the export turnoverof Vietnam to the EU increase by 20 percent by 2020; 42.7 percent by 2025and 44.37 percent by 2030. However, the agreement was signed in June and it'sunclear when it will take effect.
Experts said tomaximise benefits of the EVFTA, the country should pay attention to developingthe weaving and support industry for the garment and textile sector to reducedependency on imported materials.-VNA
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