Illustrative image (Source: VNA) The ministrysaid in January 2021, the textile production index and the apparel productionindex increased by 16.6 percent and 9.9 percent, respectively, over the sameperiod in 2020. The production of fabrics was estimated at 92.4 million sq.m,up 20.4 percent.
According toVu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (VITAS),the COVID-19 pandemic will continue to affect the sector until 2022.
If COVID-19vaccines are available in the first and second quarter of 2021, thepandemic is expected to be controlled by the end of 2023. Then, thetextile and garment market could see recovery, Giang said.
He saidtextile and garment businesses must change production and business models asthe pandemic has made global purchasing power for apparel products, includingmany traditional export garment products of Vietnam, fall by 70-80 percent.
This is abig challenge for the Vietnamese textile and garment industry. Businesses needto learn about changes in domestic and global markets tofind solutions in production and business this year, according to Giang.
He saidthe domestic textile and garment industry needs to build productionchains, especially with countries in blocs that have signed trade agreementswith Vietnam and ASEAN.
The textileand garment industry also needs to have a sustainable development strategy,including changes in production and business models according to the needsof brands and global consumers. They should pay attention to standards,certificates of origin and certification of environmental assurance, energysaving, renewable energy and product safety.
To implementa sustainable development plan for the textile and garment industry, VITASproposes the Ministry of Industry and Trade and the Government to issue thetextile and garment development strategy in the 2030-2040 period. Thatwould create favourable conditions to call investment to industrial zones toproduce material that faces a supply shortage.
The Ministryof Industry and Trade said that the textile and garment industry has greatdevelopment opportunities from the recently signed free trade agreements,especially the potential of increasing exports to major markets.
Of which,the Regional Comprehensive Economic Partnership (RCEP) signed in November 2020is expected to create opportunities for Vietnam's textile and apparel productsand also to replace some other export markets. Because the pandemic is notcontrolled and that has a great impact on the major export markets ofVietnamese textile and garment products such as Europe.
RCEP is apositive factor for production and business activities of Vietnam's textile andgarment industry in 2021 and beyond.
Le Tien Truong,Chairman of the Vietnam National Textile and Garment Group (Vinatex), said inaddition to the efforts of garment makers, the government should considerlowering borrowing costs so that they can meet new requirements as well asinvest in producing materials to meet rules of origin contained in new freetrade agreements.
He alsosuggested the government introduce specific policies to support the garmentsector’s development and direct the relevant agencies to reduce logistics costsand other tax burdens.
At the sametime, the Ministry of Industry and Trade should continue helping enterprisestake full advantage of free trade agreements by issuing guidelines on rules oforigin and opening a portal for enterprises to examine the benefits of suchpacts.
Vietnam aimsto export 39 billion USD worth of garment products this year, according tonational textile and garment group Vinatex.
Last year, Vietnam’sgarment export revenue was estimated at 35 billion USD due to the impact of thepandemic, as well as US-China trade tensions, protectionism and Brexit./.
VNA
