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Garment export target raised after good year
The country's textile and garments sector has had its annual export forecast upped by US$500,000, based on performance this year.
The Ministry of Industry and Trade changed the sector's forecast for 2011 from the previously announced $13 billion to $13.5 billion.
The new figure was announced after textile and garment exports rose to $7.56 billion in the first seven months of the year, up 29.4 per cent over the same period last year.
The US remains the largest buyer, accounting for over 50 per cent of the sector's exports, followed by the EU with 17 per cent and Japan with 12 per cent.
The ministry estimates that exports will rise to $774 million to South Korea in 2011, a year-on-year increase of 80 per cent, making the country the fourth largest buyer of Vietnamese textiles and garments.
However, in addition to ongoing challenges, including high material prices and production costs, the sector would face tougher times when major markets cut orders due to lower demand, said Dang Phuong Dung, deputy chairwoman of the Viet Nam Textile and Apparel Association.
The increase in minimum wage beginning in October would also affect the operations of many enterprises in the sector, industry insiders have said.
While the move aims to help workers hit hard by inflation, it will also increase production costs in labour-intensive industries, including the textiles and garment industry.
Many members of the association have cut electricity consumption, management and operational costs, and have reduced stocks of materials in order to cope with the situation.
Than Duc Viet, Managing Director of the Garment Company No10, said his company had cut input costs by economising on water and power consumption, and re-organising its production lines to improve quality and enhance the company's competitiveness.
Le Hung Vong
vietnamnews
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