The Wolf Is Coming! Many Textile And Garment Factories In Vietnam Have Been Filled With Full Year Orders.

6000 textile and garment enterprises account for 15% of Vietnam's total exports, making Vietnamese textile and apparel one of Vietnam's fist economic sectors and making Vietnam one of the three largest exporters of textiles and clothing. In particular, the free trade agreements (FTA) are expected to become a booster for Vietnam's textile and clothing export growth.


Vietnam's textile and Garment Association (Vitas) chairman, Wu De Jiang, said Vietnam has participated in 16 free trade agreements, 12 of which have been successfully signed and formally entered into force, contributing to the promotion of export volume. Textile and garment is one of the industries that benefit from it.


Free trade agreements play an important role in the growth of textile and clothing exports. Specifically, the Vietnam and South Korea free trade agreement came into effect in 2015. By 2016, Vietnam's exports of textiles and clothing to Vietnam amounted to US $2 billion 900 million, an increase of 11.8% over the same period last year. In 2018, the figure reached 3 billion 300 million US dollars, an increase of 24.9% over the same period last year.


The free trade agreement between Vietnam and Eurasian Economic Union, which came into force in October 2016, has increased Vietnam's exports of Russian textile and clothing from 84 million 800 thousand US dollars in 2015 to US $172 million in 2017 and US $180 million in 2018.


According to the Ministry of industry and trade of Vietnam, the textile and clothing industry maintained a growth momentum in the first 5 months of 2019, with an export volume of US $12 billion 61 million, an increase of 10.3% over the same period last year. It is noteworthy that the key markets such as the United States, the European Union, South Korea, China, ASEAN, the CPTPP and other key parties have achieved substantial growth.


Mr. Wu said that from now until the end of the year, Vietnam's textile and clothing exports will maintain a good momentum of growth, with an export volume of about 160-180 billion dollars. At present, many enterprises have accepted annual orders. It can be seen that the total export volume of textiles and clothing reaches US $40 billion, which can be achieved.


The chairman of Vietnam Textile Association, Wu De Jiang, said that the reason why Vietnam's textile and garment industry should increase its import intensity is that some parts do not support the development of textile and garment industry, especially the bleaching and dyeing chemical industry.


Mr. Wu De Jiang put forward three proposals, including vigorously developing the domestic fabric industry, and rapidly building industrial zones for investment in textile and dyeing industries; the Ministry of industry and trade must become the pillar of the textile and garment industry and promote the spanparency of the law.


Only in this way, can the textile and clothing industry quickly get rid of its dependence on imports, quickly raise the value added to the export, and make full use of the benefits of the FTA.