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Textile industry revises outlook
Export targets for Vietnam ’s garment and textile industry for next year must be adjusted downward, given the economic impacts from difficulties in the global market.
In previous years, the country experienced a growth rate of 20 percent in textile and garment export revenue. This year, the total export value for these industries is estimated to reach 96 percent of the yearly plan with about 9.1 billion USD, an increase of only 17 percent, according to the Vietnam Textile and Garment Group (Vinatex).
However, next year the exports for the industry are expected to experience a dramatic decline and increase a mere 5 percent over this year, said Le Quoc An, chairman of Vietnam Textile and Garment Association (Vitas).
The country’s initial target was set at 11.5 billion USD, An said, but this goal must be reduced due to production and business challenges already forcing an overall downward trend for export value starting in the third quarter this year.
Vinatex statistics show that Vietnam ’s textile and garment exports started to drop off in August. The export value was 916 million USD in August, but it fell to 831 million USD in September and dropped further to 753 million USD in October.
The figure was 780 million USD in November and is expected to hit 800 million USD this month.
Le Tien Truong, Vinatex deputy general director, said economic downturns in Vietnam ’s key textile and garment export markets would affect national export values this year and next year.
Pham Xuan Hong, deputy chairman of the HCM City Association of Garment, Textile, Embroidery and Knitting (Agtek), agreed that the textile and garment industry would have many difficulties in the future.
Foreign partners of some enterprises have reduced their orders, even after the products have already been produced, according to Agtek. Orders for the domestic market have also slowed down at the end of the year, which in previous years was a busy shopping season.
Many textile and garment export enterprises have not received any long-term orders of for next year, Hong said.
Agtek claimed that orders for textile and garment exports might reduce as much as 30 percent next year with no dramatic economic recovery in sight.
vna
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