Vietnam Cotton Textile Association: Exports To Decline

Vietnam Cotton Textile Association said that despite the increase in Vietnam's textile and clothing exports in 1-8 this year, the growth rate dropped significantly compared with the same period last year.

In the 1-8 months of this year, Vietnam's textile and clothing exports amounted to US $18 billion 700 million, an increase of 4.4% over the same period last year.

The association said that because of

Orders were insufficient, foreign demand declined, and the growth rate of textile and clothing exports decreased significantly compared with the same period last year.

If the current situation continues, exports will be even worse this year.

It is hard to reach the target of $29 billion, lower than the target set at the beginning of the year of US $310.

According to the association analysis, the reason for the decline in export orders is that the competition from China, India, Kampuchea, Bangladesh, Burma and Sri Lanka is very fierce. Kampuchea and Burma also enjoy preferential tariffs on exports to the EU.

In addition, Vietnam's domestic garment factories are facing many difficulties such as rising wages and production inspection.

In addition, in 2014 and 2015, many foreign companies brought business opportunities through the TPP agreement.

Construction, but Vietnam's foreign direct investment began to decline this year.

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At present, the cost of investment and installation in Vietnam is relatively low. For small and medium-sized enterprises, the burden of initial investment is not large.

The continuous rise of domestic labor costs not only forced many international garment brands to migrate to other Southeast Asian countries, but also the domestic spinning enterprises.

At present, Vietnam is rated as a highly competitive country in the global textile supply chain.

Therefore, global investors regard Vietnam as an ideal export center for textile production.

In 2014, there were 20 new FDI projects in this field.

At present, the total investment in the textile industry is more than 2 billion dollars.

Vietnam's preferential tariff conditions make it very convenient to enter the international market. Even if the European Union and the United States impose anti-dumping duties on Vietnamese products in the future, the tax rate will definitely be lower than that in China.

The Vietnamese Textile Association (VITAS) has confirmed that if the free trade agreement and the p Pacific Partnership Agreement between Korea, EU and Russia Belarus customs union were originally signed in early 2015, Vietnam will face many new opportunities.

The textile industry strives to achieve the target of 280-285 billion US dollars in 2015.

Therefore, Vietnam is likely to become a major exporter of textiles.

Recently, Vietnam's Ministry of industry and trade has also drawn up the draft "Vietnam textile and garment industry development plan and the 2030 outlook plan" in 2020, and redesigned the textile and garment industry to meet the international demand. "Vietnam is increasingly integrating into the international economy in depth and breadth, and has signed bilateral and multilateral cooperation agreements with 80 countries in the world.

This requires innovation in the textile and garment industry to meet actual demand.

Globally, the total volume of Vietnamese exports is much smaller than that of China, so it may impose a penalty tariff of 30%-40% on China, but only a few percent to Vietnam.

On the other hand, the GDP of the whole country is only about 100000000000 yuan, and for Europe and the United States, the growth is too large to be a threat.

Many Chinese enterprises invest in Vietnam. Many of them also hope to enter the ASEAN market through Vietnam based on the consideration of the global layout of enterprises.

Some enterprises said that the sale of spare parts into the Vietnamese market and the sale of finished products in the local and even ASEAN markets could save part of Vietnam's import duties, because the tariffs on bulk parts were low and the tariffs on finished products were much higher.

Some enterprises are to close to the origin of raw materials.

Baron East Limited is one of them: China, in order to protect the development needs of domestic agriculture, generally impose high tariffs on the import of foreign cotton. After moving to Vietnam, it can avoid high tariffs caused by imported cotton.

Vietnam has become a "rising star of Asia" after years of continuous high-speed growth. The British economist think tank has listed Vietnam as the most attractive foreign direct investment destination for emerging market countries after relaying the BRICs.

Vietnam's proximity to China has many similarities with China from culture to system, from thinking to behavior. The advantages of region and resources make Vietnam the forefront of Chinese enterprises' "going out" and become a practical classroom for Chinese enterprises to internationalize.

Vietnam is of great significance to China's implementation of the "going global" strategy.