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Garment exports to hit $13 billion this year
Viet Nam should be able to export US$13 billion of garments and textiles this year, according to the Viet Nam Textile and Apparel Association (Vitas).
Vitas said the goal was achievable given that established partners had recently agreed to a price increase of between 15 and 20 per cent.
In the first quarter of this year, the industry earned $2.8 billion from exports, a year-on-year increase of 28 per cent.
According to Vitas, the prices of many imported raw materials have surged.
For example, the price of cotton imported from the US has increased by 74.1 per cent in comparison with the same period last year, while the costs of labour, transport and power have also gone up.
A representative from the Gia Dinh Garment Company admitted that his company faced many challenges because it had signed contracts last year when raw materials were a lot cheaper, and they were having to honour those contracts.
To solve the problem, the association has worked with provinces to construct industrial zones in which they can plant cotton and produce other raw materials.
The association said that if companies boosted their exports, they would be able to balance their foreign currency source and import more raw material. Using alternative raw material was also suggested.
As part of a garment and textile development plan for the 2010-15 period, the industry will meet about 45 per cent of the domestic fibre demand in 2011, and this figure will increase to 70 per cent in 2012.
In 2015, the localisation rate is expected to be 70-80 per cent.
Last year, the garment and textile industry invested more than VND1.1 trillion ($52 million) to develop technologies and productivity.
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