HANOI: Vietnam’s garment and textile sector expects its exports will grow an average of 11.5 per cent per year between now and 2020, the Vietnam Textile and Apparel Association (Vitas) has said, according to the official state-run news agency VNS. Vitas said the sector is expected to generate export revenue of $27.5 billion this year. The figure is expected to rise to $31 billion next year and $45 billion to $50 billion by 2020.
In the first nine months of this year alone, Vietnam’s garment and textile exports totalled $20 billion, an increase of 10 per cent over the same period last year. Vu Duc Giang, who was voted chairman of the Vitas at a congress last week, said that global integration will facilitate Vietnamese garment and textile products over the next five years.
Tariffs for these products will reduce from 18 per cent to zero per cent following the Trans-Pacific Partnership (TPP), and from an average 11 per cent to zero per cent following the Vietnam-European Union Free Trade Agreement.
“When these pacts take effect, they will boost the development of the garment and textile industry in the long run,” Giang said, adding that accelerating investments in the sector will enhance the value of local products in the global value chain.
Dau tu (Vietnam Investment Review) online cited data of the American Chamber of Commerce, forecasting that after taking into account the impact of the TPP, Vietnam’s exports to the US are likely to reach $51.4 billion, with garment and textile products alone touching $15.2 billion by 2020. The garment and textile exports to this market may hit $20 billion by 2025.
Vietnam has been among the top 10 garment and textile exporters in the world for the last 10 years. Last year, it ranked fifth after China, Turkey, Bangladesh and India. The country exports its products to 180 countries and territories, with the US, the EU, Japan and South Korea being major markets.
