According to Ministry of Industry and Trade, total export turnover of the textile and garment industry in the first six months of this year reached US$ 14.58 billion, up 11.3% over the same period in 2016, much higher than the 6.1% by the same period of 2016. This result is an important contribution of Binh Duong textile and garment enterprises.
Efforts to maintain market share
According to experts in the industry, the value of garment exports of the country is still growing thanks to traditional markets such as the US, European Union, Japan, South Korea etc. An unnamed representative of Panko Vina Textile Co. Ltd. in Ben Cat Town said that in comparison with the main competitors such as China, India, Indonesia, Vietnam has achieved the highest growth rate of textile and garment industry. Specifically, according to the Trade Map in the first 6 months of 2017, compared with the same period, China's textile exports decreased more than 5%, Bangladesh 3.5%, and Indonesia 5% but India increased by 5%. This data shows the great efforts of the garment industry in the country in general and Binh Duong in particular.
Experts believe that textile and garment enterprises in Binh Duong need to expand their exporting market and pay more attention to domestic market. In this photo: Workers of Dai Tay Duong Co. Ltd. are working on exporting garments. Photo: Phuong Le
Statistical data shows that the textile and garment industry of Binh Duong continues to grow; of which, textiles increased by 4% and apparel 7.59% over the previous month. According to garment enterprises, there is still a lot of work to do to maintain Binh Duong's garment market share. An unnamed representative of Binh Duong Garment Association said that the garment industry is in the period of low growth, because of increasing competition and pressure on raw materials and labor force. In order to complete the annual production plan, garment enterprises themselves need to make more efforts.
Le Hong Phoa, Chairman of the Binh Duong Garment Association, said that the competitiveness of domestic textile and garment enterprises is facing many challenges due to high and rapid cost hike. The government should study the adjustment of salary increase in the next two years to ensure that the signed trade agreements are effectively implemented. Our nation is no longer producing simple, basic goods while the training time of workers takes from 3 to 6 months even a year to be qualified for sewing high-level items.
Market expansion
An unnamed leader of the Dai Tay Duong Textile Co. Ltd. in Thuan An Town said that 2017 could be said as the most difficult year for garment industry in the last 10 years. In the European market, Vietnam is subject to a tax rate of 9-12%, which is 0% for other countries such as Cambodia, Laos or Bangladesh. It is worth saying, in 2016, the United States is still the largest export market of Vietnam, accounting for over 40% of turnover. In particular, this market continues to increase market share. Thus, the impact of the US rejection of the Transpacific Partner Agreement (TPP) has challenged many garment enterprises of Binh Duong.
According to the Binh Duong Garment Association, besides TPP, our country has joined many other trade agreements, such as the Vietnam-EU free trade agreement (EVFTA) which is expected to support export turnover. EU is the second largest trading partner after the US with the proportion of export turnover, maintaining a 13% growth rate in the past two years. In addition to promoting trade, rules of origin from cloth onwards will be the driving force for businesses in the sector to remove knots in the fabric production of Vietnamese enterprises. Other free trade agreements in Vietnam, such as the Eurasian Economic Coalition effective from October 5, 2016, the Comprehensive Economic Partnership Agreement (RCEP) and so on will contribute to the growth of the textile and apparel industry. This is the matter that the garment enterprises in Binh Duong to participate in export markets should pay attention to.
In addition to expansion of markets and partners to reduce dependence, garment enterprises of Binh Duong need more attention to the domestic market. At present, Vietnamese garments account for only about 20% of the domestic market share. Meanwhile, people's living standard is improving prompting fashion spending of about 14% of the average income of the people. This is the opportunity for garment enterprises to conquer the domestic market.
Reported by Xuan Vi – Translated by Vi Bao
