(VEN) – Vietnam Textile and Apparel Association (VITAS) General Secretary Dang Phuong Dung said at a recent Ministry of Industry and Trade meeting that the textile and garment sector ranked second in terms of export value in the first four months of this year.
The textile and garment sector’s profit could decrease due to increases in fuel, transport and labor costs The sector exported goods worth US$1.3 billion in April, taking the total in the first four months of 2013 to US$5.1 billion (an increase of 20.3 percent over the same time in 2012), ranking second among all exporting industries in the country over the period.
Dung said that the sector’s 20.3 percent export growth was attributed to the fact that sector businesses had registered stable orders since the beginning of the year, and that they were well prepared in terms of labor and production materials. Businesses had done a good job in accomplishing their social responsibilities so they attracted an increasing number of clients, including those from Japan, she added.
However, while businesses obtained relatively high export growth, their profits had tended to decrease because purchasing power abroad in general hadn’t recovered yet and Vietnamese textile and garment businesses continued exporting low to medium-grade goods and were facing tough competition from other foreign textile and garment exporters, Dung said. This has caused the number of orders to decrease since early this year. Businesses encountered many difficulties including increases in fuel, transport and labor costs and some were content just to maintain their operations, let alone make a profit, Dung said.
Relying too much on imported materials is a major reason for a potential decrease in profit. Statistics indicated that cotton imports in the first four months of 2013 increased 39.5 percent over the same period of last year, while fabric imports soared 13.8 percent, fiber imports improved 5.2 percent and other material imports grew 5.6 percent. While the sector’s exports grew 20.3 percent, its imports were up 13.3 percent.
There are many problems hindering the development of raw materials for textile and garment production here in Vietnam, one of which is too strict technical barriers in the field in Vietnam, Dung said. In this regard, a project producing textile and garment materials especially textile and dyeing projects must satisfy too strict wastewater-related standards that are even higher than those applied in other countries in the region. This has discouraged businesses to invest in such projects in Vietnam.
Dung proposed that the Ministry of Industry and Trade suggest that relevant authorities review and revise environmental regulations subject to textile and dyeing projects to encourage investment in textile and garment material development in the country and increase the local content of textiles and garments. She also suggested that the ministry to promptly approve funding for the national trade promotion program in order to pave the way for businesses to advertise their products and services and expand their markets.
Businesses are focusing on increasing sales in the domestic market through providing quality, reasonably priced products to make up for decreases in profit caused by price decreases and to maintain production and employment, Dung said./.
By Viet Nga
Đăng ký: VietNam News