Illustrative Image (Source: VNA)

Hanoi (VNA) – Vietnam’s garment and textile exports in the first half of this year reached 12.6 billion USD, a year on year increase of 4.72 percent and accounted for 41 percent of the sector’s target for 2016.

The information was heard at a press conference on reviewing the sector’s performance in the first six month of this year, held by the Vietnam Textile and Apparel Association (VITAS) in Hanoi on July 21.

According to the association, growth of the sector in the reviewed period was largely attributed to foreign direct investment (FDI) firms. It warned and that the situation could worsen from August this year, and many small and medium sized firms may have to shut down due to slow consumption in foreign markets.

VITAS warned the sector might earn only 29 billion USD from exports this year, down two billion USD from the set target, if the situation does not get any better.

Deputy Chairman of VITAS Truong Van Cam said, Vietnamese garment and textile enterprises are facing difficulties due to the pressure of competing for a lower number of orders, and also buying power in foreign markets.

He acknowledged that one of the reasons that caused difficulty for enterprises is the Vietnamese Dong (VND) stability policy against the USD, reducing competitiveness of goods from Vietnam to other countries such as India, Bangladesh, ASEAN countries and China.-VNA