The EU countries are now under constant financial crisis and facing declining consumer spending, which has serious negative impacts on the share of exports for Vietnam, especially in the textile industry. To minimise problems when exporting to the EU, the second largest market after the United States, Vietnam enterprises have turned to markets in Japan, Korea, Africa and elsewhere.
In 2013, it is expected that imports of textiles from EU countries reached more than US$230 billion, while two years ago, this figure amounted to US$260 billion. Last year, textile exports from Vietnam to this market fell 14 percent, reaching US$2.5 billion. In the last five years, the growth of textile exports of Vietnam has been ranked in the highest group of countries in the world with 32 percent. However, the growth of textile exports from Vietnam to the EU markets is not as strong as that to the United States, Japan and South Korea.
It is expected that by 2015, Vietnam – EU Free Trade Agreement will come into force, which means firms specialising in exporting goods to the EU will benefit from the reduction of the average tax rate from 11.7 percent to 0 percent. Having advantages of large population, high spending rate and quite easy-going, the EU is still a potential market of Vietnamese enterprises.
According to the Vietnam Textile Corporation (Vinatex), in 2012, textile exports to the US reached nearly US$7.6 billion, accounting for 44.7 percent of the total export turnover of the sector. Meanwhile the textile exports to the EU reached US$2.5 billion, accounting for 14.6 percent, and that to Japan reached more than US$2 billion, accounting for 12 percent.
Being in the top five countries having the largest textile export turnover in the world but Vietnam’s textile imports share in many countries in the world is quite low. In the US, the rate is 8 percent, and in the EU the rate is only 1 percent. Vietnam’s textile industry is having greater opportunities to expand its market share when enjoying preferential tariffs under the FTA with Japan, Korea, EU, etc.
As reported on forecasting production by the Ministry of Industry and Trade, in early May, 2013, textile exports in the coming months will be more optimistic when production orders are quite stable to the end of the second quarter, even to the third quarter of 2013. However, the textile industry’s profit may probably face reduction compared to the previous years due to small orders and fierce competition price which makes it difficult to raise export prices.
Japan has surpassed the EU to become Vietnam’s second largest export market in textile industry. Since the Vietnam – Japan FTA came into effect at the end of 2009, textile and garment export growth to Japan of Vietnam has increased dramatically, although this growth was inconsiderable earlier. In addition to the advantages enjoyed from the FTA like preferential tax rates, the policy on reducing imports from China is another opportunity to help Vietnam’s textile industry to further enter the Japanese market. Currently, the total textile imports turnover to Japan is about US$40 billion per year. It is expected that in 2013, Japan will import about US$2.4 billion of textiles from Vietnam.
Korea also rose to be the forth largest market of Vietnam with a textile imports turnover from Vietnam of approximately US$1.3 billion in 2012, accounting for 8 percent of the market.
Recently, African market has proven itself not only a promising market but also a potential attractive export market of Vietnam’s textile and garment enterprises. In 2012, Vietnam exported textile and fabrics products to 48 countries in Africa with the turnover of US$164.47 million, up 17 percent compared to 2011.
The advantages of African countries include dense population and that most African countries are members of the WTO. Another advantage is that most African countries are entitled to preferential tariffs when exporting to the EU and the US. The African Growth and Activity Act (AGOA) allows almost all goods of 38 countries of sub-Saharan region, including textile products, to be exported to the United States without tax and unconstrained in number. Vietnamese businesses can consider the possibility of investing in a large number of African markets to take advantage of cheap labor and cheap materials for the production of textiles serving local demand and exports.
Huong Giang
Đăng ký: VietNam News
