Why did textile and garment exports make a “huge” breakthrough in integration?
According to Mr. Le Tien Truong – General Director of Vietnam National Textile and Garment Group (Vinatex), after 10 years of joining WTO, in 2017, textile and garment exports reached 31 billion USD, up 4 times compared to 2007. In particular, the value of the domestic textile industry increased about seven times, from $2.2 billion in 2007 to over $13 billion in 2017.
In 2017, the world’s major textile and garment exporting countries tended to reduce their turnover. In which, China decreased by 1.2%, Bangladesh decreased by 1.3%, Turkey decreased by 4%, only three growing countries were India, which increased by 13%, Cambodia by 3% and Vietnam by 10%. “, said Mr. Truong.
According to Mr. Truong, the remarkable point is that the process of deep integration with the world economy has helped Vietnam’s textile and garment industry to significantly expand export markets. Specifically, before 2013, Vietnam had only 3 textile and garment export markets with over 1 billion USD: Japan, the EU and the US.
However, since the Vietnam-Korea FTA, Korea has become a market with over 1 billion USD in export turnover of the textile and garment industry. In 2017, textile and garment exports to South Korea reached $2.6 billion. With the ASEAN Economic Community (AEC), Vietnam has a fifth export market of over 1 billion USD. In addition, in 2017, Vietnam also exported to China raw materials such as yarn and fiber with a turnover of 3.2 billion USD…
“Besides, the Vietnam-Eurasian Economic Union FTA also opens up opportunities for Vietnamese textiles and garments in the markets of former Soviet Union countries. In two consecutive years 2016-2017, enterprises increased their exports to Russia at a rate of 5-6%. In 2017, textile and garment exports to Russia reached approximately 200 million USD. This is a very potential market with a turnover of over 9.7 billion USD/year, while Vietnam’s market share is only 1.8%, “- Mr. Truong emphasized.
Why has the textile and garment industry developed so strongly in integration? In response to this question, Mr. Truong said: This result is due to the internal strength of enterprises plus the good use of FTAs.
The experience to take advantage of the FTAs is the deep participation of Viantex and the Vietnam Textile and Apparel Association in the FTA negotiation process. Textile and garment is the only industry to fully participate in the negotiations, the negotiation rounds of the TPP, the Vietnam-Korea FTA, the Vietnam-Eurasian Economic Union FTA…
“Thanks to direct participation, textile and garment enterprises receive information promptly, proactively, and propose plans for the negotiating team to take advantage of the domestic textile and garment industry as well as meet the rules of origin that are not accepted. agreements will apply. All these preparations have created conditions so that when the FTA comes into effect, domestic enterprises will make good use of opportunities, improve market share, and grow exports,” Truong emphasized.
According to Business Forum Newspaper.
