After recording an overall export turnover of around US $ 281.50 billion last year at 6.50 per cent year-over-year (Y-o-Y) growth, 2021 too seems to have begun well for the country – at least the garment and textile export numbers indicate that.
Also Read: Vietnam records 5-year highest trade surplus of US $ 19.1 billion in 2020
The country saw its garment and textile industry earn US $ 2.6 billion from exports in January 2021 – that’s a Y-o-Y growth of 3.3 per cent.
While confirming the same, the Ministry of Industry and Trade added that the garment production index and textile production index jumped by 9.9 per cent and 16.6 per cent, respectively, in January.
The Ministry also said that the production of fabrics was estimated at 92.4 million square metres at a jump of 20.4 per cent.
However, it isn’t going to be easy for the industry that is battling the pandemic wrath. More on this, Vu Duc Giang, Chairman, Vietnam Textile and Apparel association (VITAS) said that the recovery could be seen only by the end of 2023 – provided vaccines are available in Q1 and Q2 of 2021.
The Chairman also added that textile and garment sector should also change production and business models as COVID-19 has caused global purchasing power of apparel products slide by 70 to 80 per cent.
He also said that in addition to developing production chains with countries in blocs that have signed trade deals with Vietnam and ASEAN, the industry also needs to have a sustainable development strategy.
To ensure a sustainable development plan is implemented for the garment and textile sector, VITAS proposes the Ministry of Industry and Trade and the Government to issue the textile and garment development strategy in the 2030-2040 period.
This would help create favourable conditions to invest in industrial zones so as to produce materials that face supply shortage.
Vietnam, as per reports, plans to export US $ 39 billion garment products in 2021.
