Vietnam’s “Business Daily” recently reported that Vietnam’s textile exports reached US$9.51 billion in the first four months of this year, a year-on-year increase of 9%. The export value of fiber and yarn reached US$1.64 billion, an increase of 43.4%; the export value of textile and leather footwear raw and auxiliary materials reached US$642 million, an increase of 14.1%.
Vietnam’s Ministry of Industry and Trade stated that this year against the backdrop of some of Vietnam’s major export markets gradually recovering and making good use of the free trade agreements that have been signed and come into effect. Vietnam’s textile industry showed more positive signals in the first four months compared with the same period last year.
Vietnam’s textile manufacturing index increased by 2.7% month-on-month and 17.3% year-on-year in April this year; the clothing manufacturing industry increased by 3.9% month-on-month and 29.4% year-on-year. Overall, in the first four months of this year, the textile production index increased by 7.8% year-on-year, the clothing manufacturing industry increased by 9.5%, and the leather and related products increased by 11%.
Some products in this industry have achieved good growth, such as: woven fabrics made of natural fibers reached 201 million square meters, a year-on-year increase of 10.1%; Textiles made of fiber and man-made fibers reached 378.3 million square meters, a year-on-year increase of 6.4%; casual clothing reached 1.4942 billion pieces, an increase of 8.9%; footwear reached 94.1 million pairs, an increase of 13.3%.
According to Vietnam’s “Industry and Trade News” report, Vietnam’s textile and garment industry is considered to be the most enjoyable The Free Trade Agreement (FTA) is a dividend industry, but due to the inability to self-sufficiency in raw and auxiliary materials, Vietnamese domestic textile and garment enterprises have not been able to fully enjoy the FTA tariff preferences.
The Vietnam Textile and Apparel Association stated that the average usage rate of certificate of origin (C/O) for exporting textile and apparel products to countries that have signed FTA is about 58%. Among them, for exports to Japan under CPTPP, the C/O utilization rate is about 60% to 70%, while for exports to the EU under EVFTA, the utilization rate is only 20% to 30%.
Vietnam Textile and Garment Group stated that the main obstacle to the low C/0 utilization rate and the failure of enterprises to enjoy dividends is the origin of raw materials. The group mainly processes garments, and it is very difficult for enterprises to enjoy dividends. It is difficult to meet the requirements for yarn and fabric origin. In addition, domestic enterprises also face strong competition from foreign-invested enterprises. Since 2015, foreign investment in the textile and apparel field has exceeded US$20 billion. Most foreign-funded enterprises are able to achieve self-sufficiency in raw materials, which invisibly puts great pressure on domestic enterprises.
The report stated that the Vietnamese government should further strengthen the development of supporting industries to meet the demand for raw materials. At present, it should focus on the development of dyeing and finishing projects to solve the problem of fabric dependence on imports and increase the export of goods. Domestic value content.
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