Vietnam Garment-textile exports expected to hit $5b

HA NOI - With Vietnam textile and garment enterprises boosting trade and production activities, export turnover from textiles in the last two months is expected to surge to over US$5 billion this year, according to the Ministry of Industry.

The prediction was based on the export turnover in the first 10 months, which increased to nearly $4 billion, up 7.2 per cent over the same period last year, the ministry said.

Turnover from exports to the US market accounted for 50 per cent or $2 billion in the first 10 months of this year, with October bringing in an estimated $450 million, according to statistics.

Among the export categories, cotton jackets and cotton and synthetic fibre knitted shirts for both men and women accounted for 63 per cent of the total export turnover from the US market.

To create favourable conditions for textile enterprises to enhance exports in the coming year, the ministries of trade and industry have issued a circular for an automatic quota allocation system for garment manufacturers exporting to the US.

The automatic quota distribution regime will be implemented from January 1 to June 30, 2006 for all 38 quota categories for exports to America.

Under the new system, the ministries will halt automatic allocation for local garment companies exporting up to 70 per cent of their total annual quota in each category by the end of June.

In the second half of the year, the ministries will distribute quotas based on the export records of producers in the first half and their demands on inked contracts.

To help relevant agencies fight trade frauds and quota transfers, the Ministry of Trade has requested local import-export managing agencies to co-operate with the Textile and Apparel Quota Administration Division for monitoring closely the automatic quota allocation to the US market in 2005 and 2006.

At present, Viet Nam has over 2,000 textile and apparel enterprises. In 2004, total revenue from this sector stood at $7.1 billion, with exports earning $4.36 billion. The country’s revenue from textiles is expected to reach $8.6 billion in 2005, and $17 billion by 2010, with exports accounting for $10 billion.

Domestic consumption, meanwhile, was expected to reach $1.5 billion this year, up 30 per cent compared to last year, according to the Viet Nam Textile and Apparel Association (Vitas).

However, the textile and garment industry still faces many difficulties, including a shortage of skilled workers, which has partly affected the competitiveness of domestic textile and garment exporters. 

The Sub-Council of Textile Industry,CCPIT