A garment-textile firm in northern Thai Nguyen province (Photo: VNA) HCM City (VNS/VNA) - Vietnam’s garmentand textile sector is set to expand its market share globally, takingadvantage of free trade agreements (FTAs) to become “a manufacturer of theworld's established brands”, a trade and investment official has said.
Pham Thiet Hoa, Director of the HCM CityInvestment and Trade Promotion Centre (ITPC), said that an increasingnumber of international buyers were sourcing products from Vietnam becausesupply chains for locally made products had improved and the country had joinedmore FTAs.
Competitive labour costs and preferentialpolicies will continue to help Vietnam become an ideal destination forinvestors in this sector, he said.
Participation in the Comprehensive andProgressive Agreement for Trans-Pacific Partnership (CPTPP) will benefit thecountry in the long term, helping the garment and textile sector expand marketshare in Canada, Mexico, New Zealand and Australia and many other countries.
In addition, the EU-Vietnam Free Trade Agreement(EVFTA) is expected to have a positive impact in the medium to long term.
The legal review for EVFTA has been completedand it is undergoing its members’ approval process. It is likely to be approvedby Vietnam’s National Assembly in June.
The EU is the second largest export market for Vietnam’sgarment and textile sector, with more than 40 percent of tariffs applied togarment and textile products expected to be reduced to zero percent when theEVFTA agreement takes effect.
“FTAs play an important role in helping Vietnammove up the value chain in the garment and textile industry,” he said. “FDIcompanies have so far invested about 17.5 billion USD in the industry,” hesaid.
More than 30 leading Vietnamese manufacturers ofgarments, textiles, handicrafts and fashion accessories displayed theirgoods at the Global Sources Fashion show held last week in Hong Kong.
Many of the exhibitors are members of the VietnamTextile and Apparel Association (VITAS), Vietnam National Textile and GarmentGroup, and Handicraft and Wood Industry Association of Ho Chi Minh City.
Vietnamese exporters are expected to increaseexport orders from major buyers at the fair such as Auchan, Best Buy,Carrefour, Fossil, Hong Kong Disneyland, K-Swiss, Li & Fung, Marks &Spencer, Quiksilver, Swarovski, Target and Tesco, among others.
Livia Yip, president of Global Sources FashionGroup, said the event promotes industry development and facilitatesinternational design exchange, providing designers with a platform for reachingbuyers and suppliers.
Bui Thi My Hanh, an exhibitor which took part inthe trade show, said that most Vietnamese exhibitors lacked marketingskills as well as information about export markets. “To fully take advantage ofthe event, exhibitors should be trained by ITPC to become to be an effectiveexhibitor.”
Hanh said that ITPC should act as a bridgeconnecting overseas trade officials with exporters so that local exporters canbetter understand export markets.
Vietnamese exhibitors also expect more orders toshift from China to Vietnam due to the ongoing US-China trade war, she said.
Vu Duc Giang, chairman of VITAS, said Vietnamesetextile enterprises this year have seen positive signs for orders, he said.“Many businesses have already received orders for the first six months of 2019and even for the entire year.”
Last year, the industry earned 36 billion USDfrom exports, up 16 percent year-on-year, making Vietnam one of the world’sthree biggest exporters of textiles and apparel.
This year, the textile and garment sector hasset a target of 40 billion USD in exports, up 11 percent year-on-year.
The industry has set a target of more than 60billion USD worth of exports by 2025.-VNS/VNA
VNA
