2017 textile & garment exports forecast to increase 8-9%

Exports up 8.2% year-on-year in first eight months.

Textile and garment exports are expected to increase 8 to 9 per cent this year.

August exports reached $2.68 billion, up 8.6 per cent against July, for an eight-month figure of $16.86 billion, up 8.2 per cent year-on-year.

Exports to the US stood at $8.16 billion, up 7.3 per cent, to the EU $2.47 billion, up 4.1 per cent, to Japan $1.97 billion, up 5 per cent, and to South Korea $1.56 billion, up 12.6 per cent.

Exports have been effected by many factors, according to the Ministry of Industry and Trade (MoIT).

Growth in Vietnam’s biggest import markets, including the US and the EU, has slowed, while rising in South Korea and Russia through free trade agreements (FTAs).

Vietnam’s textile sector is also experiencing a number of favorable factors. In particular, the EU has approved rules on the accumulation of origin for raw materials for Vietnam.

Exports, however, are still forecast to be affected by global factors, such as US President Donald Trump’s trade protection policies and the impact of the US Federal Reserve’s adjustments to interest rates.

Vietnam’s competitors are also likely to continue support their textile and garment industries through tax policies and currency devaluations.

Vietnam’s textile sector has also been affected by high costs and a lack of human resources, which impact on competitive capacity.

Based on its analysis, MoIT said the garment sector will not see many changes over the closing months of the year.

by Hai Van / VET