Hanoi – The Vietnam Textile and Apparel Association (VITAS) has set ambitious for its export turnover in 2019 of US$40 billion, a figure that would mark a 10.8 per cent year-on-year increase for the country.
In 2018, Vietnam reached a US$36 billion turnover for garments and textile products and so if the new projections in growth are met, the country would become one of the three largest exporters of textiles in the world.
VITAS anticipates the country’s trade surplus to reach US$20 billion this year along with hopes that employment will be ensured, as well as a wage increase, for more than two and a half million of its workers.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which came into effect last month, is expected to boost the country’s economy by 1.3 per cent and export turnover by four per cent.
This is also expected to cut import tariffs and diversify product availability in associated member countries. “Enterprises have tried to limit imports of raw materials but still have to import over 60 per cent of foreign raw materials, of which 50 per cent comes from China,” chairman of the HCM City Textile and Garment – Embroidery Association Phạm Xuân Hồng said. “Therefore, enterprises need to understand the regulations, customs procedures and logistics laid out in CPTPP.
“The State should support businesses by creating a fair playing field and minimising administrative procedures to raise competitiveness in domestic market,” he said. "CPTPP is considered one of the factors attracting foreign investment in the raw materials manufacturing industry. However, this industry carries risks of environmental pollution if outdated technology is used."
According to Vũ Đức Giang of VITAS, order statuses so far are positive and align with export projections.