Le Tien Truong, general director of the Vietnam National Garment and Textile Group (Vinatex), said this target was set despite difficulties in markets at home and abroad. He was speaking at a meeting on reporting Vinatex’s results of production and business in Hanoi on January 2.
In 2018, Vietnam’s textile and garment industry will face more competition, while other textile exporting countries in the world plan to maintain their market shares in the world garment market, as well as expand their market shares further, Truong said.
The local textile and garment industry must be careful with the anti-dumping story, he said.
To achieve the target of more than 10% growth in 2018, Vinatex’s general director said that the textile and garment industry must make great efforts to focus further on solutions to increase labour productivity.
He said that Vietnam’s textile and garment industry stands at a good position in the world garment market. The major buyers of the world consider Vietnam as the supply centre and give priority to Vietnam in supplying garment products to them.
Vietnamplus quoted Truong as saying that "Vietnam is the world’s largest producer of men’s and women’s suits.”
“Moreover, Vietnam has had experience in converting from a production method of processing to an FOB (free on board) and ODM (original design manufacturer). Now, the processing has reached only 30-35% of production, while FOB has accounted for 55-60% and ODM producing textile and garment products, from designing to finished-products, has occupied 10%," he said.
In addition, the industry should continue to invest in technology development to create stability, sustainability and efficiency in development of the textile and garment industry, he said.
Exports in 2017
Last year, the textile and garment industry gained a year-on-year increase of 10.23% in the export value of textile and garments to US$31 billion, higher than its target set at the beginning of the year at US$30 billion.
Major markets of the United States, the European Union, Japan and the Republic of Korea maintained good growth, while there were breakthroughs in exports to other markets such as China, Russia and Cambodia, according to Truong.
The RoK's market jumped to the fourth position, close to the Japanese market, reaching an export value of US$2.7 billion in 2017. Vietnam’s textile and garment exports to China in 2017 reached US$3.2 billion, the same as the export value to Japan.
Meanwhile, Truong said the domestic textile and garment market also gained a year-on-year growth rate of 10% in 2017.
The balance in development of the domestic market and the export market has been an important point for the local textile and garment industry to ensure jobs for the employees and to maintain development of the enterprises, he said.
Vinatex’s total revenue increases
During the meeting, Vinatex reported its total revenue in 2017 was estimated to have increased year-on-year at 10.7% to VND45.55 trillion (US$2.02 billion). Of this, domestic sales reached VND10.39 trillion, accounting for 22.8% of the total revenue, 10.6% higher than the revenue in 2016.
The pre-tax profit in 2017 reached VND1.43 trillion, according to the group.
Vinatex set a revenue target of VND48.5 trillion, a year-on-year surge of 6.5% and a pre-tax profit of VND1.45 trillion in 2018.
This year, the group will also implement the divestment, according to the decision of the Prime Minister. The Ministry of Industry and Trade will withdraw its investment at 53.5% of Vinatex’s shares from the group this year.