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FTAs stimulate textile and garment growth
Thursday,  Jan 4, 2018,23:16 (GMT+7)

FTAs stimulate textile and garment growth

Employees are at work at a garment company in Vietnam. Free trade agreements (FTA) have helped bolster the growth of the local textile and garment industry in the past two decades - PHOTO: THANH HOA

HANOI – Free trade agreements (FTA) have helped bolster the growth of the local textile and garment industry in the past two decades, the Vietnam National Textile and Garment Group (Vinatex) said at a news briefing on its business performance in Hanoi City on January 2.

Vinatex general director Le Tien Truong was quoted by the Vietnam News Agency as saying that Vietnam exported garments and textiles worth US$3.2 billion to neighboring China last year.

Around 17 years ago, there were just three foreign markets – Japan, the European Union and the United States, from which Vietnam earned garment and textile export revenue of US$1 billion each. The country’s such markets have now risen to six, Truong noted.

“The strong growth of Vietnam’s textile and garment industry has been closely linked with the free trade agreements the country has signed in recent years,” he said.

He added local textile and garment companies posted growth of 10% last year.

Vinatex’s export target for this year is US$34 billion, a 10% rise against 2017, he said. However, he painted a gloomy picture for the sector from a global perspective. Given fierce competition, garment and textile exporters all over the world are seeking ways to fuel growth.

Therefore, he stressed, the Vietnamese garment and textile sector should take precautionary measures against technical barriers to trade and anti-dumping lawsuits. Besides, local companies should improve their labor productivity.

“Vietnam is the largest producer of men’s and women’s suits. Furthermore, Vietnam has shifted from pure outsourcing to FOB (free on board) and ODM (original design manufacturing),” he said, adding outsourcing accounts for 30-35% while FOB and ODM make up 55-60% and roughly 10% respectively.

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