According to Vietnam’s “Vietnam News” on January 16, Vietnam Textile and Apparel Group (Vinatex) announced that Vietnam’s textile and apparel industry growth target in 2017 is 6.5-7%, and export volume will reach 30 billion US dollars. Mainly based on the growth of the U.S. economy and market consumption, Vietnam’s domestic and foreign textile and apparel markets are expected to continue to improve.
To achieve the above goals, Vietnamese garment and textile enterprises should improve production and sales performance, increase production capacity, shorten goods delivery time, and improve the international market distribution system. At the same time, the state should provide more industrial support and infrastructure facilities.
Vietnam’s clothing and textile industry has sufficient orders in the first quarter, but development in 2017 still faces challenges. The industry lacks export tax policies, the Vietnam-EU Free Trade Agreement and TPP have not yet taken effect, and other countries have increased product competition through preferential tax policies and exchange rate adjustments. As a result, Vietnamese textiles are facing more intense competition. The uncertainty of EU economic development will also affect the development of this industry. Regarding access to the EU market, although the Vietnam-EU Free Trade Agreement will not take effect until 2018, Vietnam can still use the EU’s Generalized System of Preferences arrangement for Vietnam to enjoy low or tariff-free export products and compete with other countries in the EU market.
In 2016, Vietnam’s textile and garment industry exports amounted to US$28.3 billion, a year-on-year increase of 5.7%, which was lower than expected. VINATEX believes that the global apparel industry was in a downturn in 2016, and import demand in major export markets such as the United States, Europe, and Japan was sluggish or continued to decline. However, compared with China, India, Bangladesh, and Indonesia, Vietnam’s apparel exports grew the fastest. Vietnam’s textile and apparel industry growth target in 2017 is 6.5-7%
