Ho Chi Minh (Viet Nam News/ANN) - The
garment industry in Vietnam has set itself an export target of US$15 billion
next year despite a slew of possible hurdles in its path.
This year's target is $13 billion, which is
most likely to achieve after already exporting $10 billion worth goods.
The Vietnam Textile and Apparel Association
(Vitas) listed challenges like high inflation and unstable interest and
exchange rates next year.
The sector would also be affected by the
ongoing public debt crisis in the EU, one of the country's key markets, it
said, as it would be by the economic problems at home.
Inflation in Vietnam is likely to be around 10
per cent next year, higher than in countries that compete with Vietnam for the
global textile market.
This means costs like electricity, water, fuel
and salaries would continue to rise, impacting the sector's competitiveness.
A large number of textile firms lack funds for
production and expansion because of the continuing high loan interest rates
despite the government's efforts to reduce them. Only a small number of firms
have been able to get credit on easy terms.
The industry has mapped out measures to be taken
to achieve next year's target, including gradually reducing its dependence on
sub-contracting for other producers.
The growth in exports to key markets like the
EU, the US, and Japan was expected to fall by 10-15 per cent next year, Vitas
said.
Thus, combating this fall is another measure
the sector eyes.
Besides, exploration of new markets like
Russia, Canada, and South Korea will be accelerated.
The sector also plans to increase the use of
domestically sourced feedstock to reduce costs and adopt proper policies to
attract workers. None of these problems are new, however. The industry has been
facing inflation and a relentless rise in feedstock prices, but still managed
to achieve growth, topping $11.2 billion in exports last year.
In the latter half of this year too the sector
has been facing challenges in getting orders, but Le Tien Truong, deputy
general director of the Viet Nam Textile and Garment Group, said it remained on
track to fulfil its export target.
Exports to the EU, the US, and Japan had been
growing as scheduled, he said.
As of the end of October, exports to the EU
were up 41 per cent. They were up 14 per cent to the US and a whopping 52 per
cent to Japan.
The Business Desk in Ho Chi Minh/Viet Nam News
| ANN
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