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Garment makers seek Africa opportunities
Domestic textile and garment firms should target African countries as part of efforts to diversify their export markets, officials of the Ministry of Industry and Trade say.
The Viet Nam Investment Review newspaper yesterday cited the officials as saying local firms were likely to ignore the African market despite it being a lucrative one for garment and textile firms worldwide.
The Southern African Customs Union (SACU) was considered the region with the highest development potential in Africa, the ministry said.
SACU, the oldest customs union in the world, comprises Botswana, Lesotho, Namibia, South Africa and Swaziland.
Out of the five SACU members, South Africa had highest demand for garments, the ministry said, adding that last year it spent US$2.7 billion on importing garment and textile products.
More than half of these products were from China, according to South Africa's trade ministry, accounting for $1.47 billion. China was followed by India, Pakistan, Mauritius and Germany, it said.
Although it was one of the world's largest exporters of garment and textile products, Viet Nam's exports to African countries was very modest, the Ministry of Industry and Trade said.
Last year, Viet Nam's garment and textiles exports to South Africa was just $22.73 million, it said.
With advantages in labour costs, skills and productivity, Vietnamese garment and textile firms were quite capable of expanding their exports to Africa, experts said.
Viet Nam, as well as SACU nations, was member of the World Trade Organsisation, so trade between the two sides could be easily done based on market demand, they said.
With more than 10 years of experience in doing business in Africa, Thai Tuan Kieu, deputy general director of the Thai Tuan Group, said there was great demand in the continent for many kinds of goods.
However, to be successful in the African market, local firms must understand well their customs, culture and payment methods, he added.
Experts said that a policy of export market diversification was advisable for Vietnamese firms to avoid heavy reliance on traditional markets.
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