Vietnamese apparel firms receive full orders until March
Garment and textile enterprises have received enough orders to keep them busy through the first quarter of this year, said Le Tien Truong, General Director of the Vietnam National Textile and Garment Group (VINATEX).
At a press conference on January 9, Truong said that in 2017, the group targets a rise of 11% in export turnover, 14% in production value, and 12% in revenue.
He predicted that this year, Vietnam’s garment and textile sector will face numerous challenges, including a lack of support in taxation policies as several important trade deals such as the EU-Vietnam free trade agreement and the Trans-Pacific Partnership, will not become effective in 2017.
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Competition will become fiercer as other countries will continue attracting orders thanks to their advantages in tax and exchange rate, he said, adding that the instability in the EU economy will also affect the industry.
Last year was gloomy for the world apparel sector. Major importers, including the US, the EU and Japan experienced low or decreased demand for garment and textile products, he noted.
Vietnam’s apparel also saw under-expectation result with US$28.3 billion in export, up 5.7% year on year. VINATEX earned over US$2.5 billion, a rise of 5% over 2015, with a pre-tax profit of over VND41 trillion on a 5% year on year increase. Its employees’ average income rose 8% over the previous year to reach VND6.7 million per month.
Truong also said that the results showed the great efforts of the sector, as Vietnam recorded higher growth than major competitors such as China, India, Bangladesh and Indonesia.
