Vietnam: Vietnamese textile, garment exports may exceed $30 bn

Vietnam’s textile and garment exports turnover in 2017 may exceed the target of $30 billion, according to the Vietnam Textile & Apparel Association (VITAS), which says $2 billion worth investment has poured into this sector this year to date. The turnover was $17 billion in the first seven months of this year. Some new barriers to business, however, remain. 

The country has not witnessed many large-scale new foreign direct investment (FDI) projects in this sector this year as was seen three years ago. However, foreign investors are seen expanding their existing projects, according to a report in an English-language online newspaper in Vietnam. The ministry of industry and trade has cautioned that export markets have increased their trade remedies against Vietnamese products. India, for example, imposed a tax of 35-45 per cent on elastomeric filament yarn. 

While South Korean enterprise Long Thai Tu Yarn will invest $50 million to expand its workshop in Long Khanh industrial zone (IZ) in Dong Nai province, Trillions Enterprise from Brunei, which has a dyeing and weaving factory in Tan Duc IZ in Long An province, wants five more hectares to scale up production. Taiwanese Far Eastern has registered additional investment capital of $485.8 million, raising its total investment in Bau Bang IZ to $760 million after two years of operation. Among the Vietnamese firms that have stepped up investment, Bao Minh Textile has invested $75 million in a cloth-making unit in Nam Dinh that is likely to become operational by March 2018. 

Though companies no longer expect nil tax, Vietnam remains a big garment exporter globally, according to VITAS chairman Vu Duc Giang. VITAS feels besides the Trans-Pacific Partnership (TPP), Vietnam’s textile and garment industry enjoys benefits from other free trade agreements, including the ones with the European Union (EU), South Korea and Japan. Vietnam holds only 3 per cent of the EU market share in this sector.

Source: Vietnam News, Vietnam
Friday, 01 December 2017

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