According to the Center for Information Industry and Trade (MOIT) said that, starting in 2015, Vietnam’s garment sector have positive signs following: (i) Production and export of textiles to be positive; (Ii) Export of textiles to the EU, South Korea rose sharply, exports to the US market have increased significantly; (Iii) Import of textile raw materials from China market remains strong; (Iv) The import turnover of US textiles and clothing from Vietnam surged higher than imports from other markets; (V) The market share of Vietnam’s textile and garment market in the United States continued to increase; (Vi) The wave of investment in the textile and apparel continued to prepare for the free trade agreement.
Production status
Exports increased along with increased investments in the field of textile production as well as production materials helped garment production in 2014 increased significantly. Specifically wear plain clothing production increased by 9.1% compared with 2013; woven fabrics from natural fibers by 16.9%; synthetic materials rose 5.4% …
Domestic textile trade
2014, according to statistics from the Ministry of Industry and Trade, the value of textile and garment consumption in the country is around $ 3.5 billion; however, the reality may be larger because the market is there are many sources of unknown origin goods or garments statistics like family, portable, … smuggled textile products Vietnam has reaffirmed foothold in the domestic market. The expansion of the distribution network is one of the solutions help businesses Vinatex put their products closer to the consumer in the country.
By 2013, the total number of stores, dealers, product introduction point of the member units nationwide reached 4,125 Vinatex points, to 2014 has increased to almost 4,300 points. The market share of the domestic market Vinatex is about 30% with many brand companies such as Vietnam Tien, Nha Be, May 10, Hoa Tho, Vietnam Thang Duc Giang, Hanosimex …
Many reliable exporter also planned to build a strong brand a foothold in the market share of foreign goods such premium: San Sciaro, Manhattan, Mattana, GrusZ …. Has also gained a foothold in the market and achieved certain success contributes enhancing brand value Vietnam.
Export situation
In 2014, exports of textiles and clothing in the country reached US $ 21 billion up 16.8% compared with 2013; export turnover reached 2.54 textile fibers billion up 18.3%; curtain fabric, cloth other techniques to reach 456 million, up 13.4%. Export turnover reached 1.11 billion of raw materials rose 21.4% USD.
United States continues to be the largest export market of Vietnam garment.
In 2014, exports of textiles and garments to this market reached $ 9.8 billion, up 14% compared with 2013.
EU, by 2013, the market share of textile and garment export market of Vietnam on the EU to 1.1% in 2014 rose to 1.98%. 2014 exports to the EU reached 3.37 billion an increase of 23.5%. About categories: jackets, pants and women, male and female suite clothing line continues to be exports high share in the structure of garment exports from Vietnam to the EU. In 2015, expect the free trade agreement between the Vietnam – EU was signed, the growth of textile and garment exports to the EU Vietnam will prosper like the case of Bangladesh, strong growth in the EU since While tax incentives GSP.
Japan market: in 2014, textile exports from Vietnam to Japan reached 2.6 billion UD 10.1% compared to the year 2013. 2013, in the Japanese market, export market share China’s textile accounts for 70.75%, accounting for 6.01% Vietnam, Indonesia 3.35%, Italy 2.61% and 1.98% in Thailand to 2014 with the order set out above, the market share of Chinese China dropped to 67.22% enabling other vendors to increase market share, which, Vietnam increased 6.61%, Indonesia 3.69%, Italy 2.76% and 2.26 Thailand %.
Vietnam has strengths as one of the countries participating in the negotiations Trans-Pacific Partnership (TPP) with Japan. The Japanese investors to increase investment in the production of materials in the textile industry in Vietnam has given Vietnam’s garment industry the opportunity to take advantage of advantages of the rules of origin and gradually meet technical standards and the environment when exported to Japan.
Korean market: in 2014 exports reached $ 2.1 billion increased 27.5% compared to 2013. In particular, strong growth especially groups coats, jackets, every suite, men’s pants / … The demand for female garment imports of Korea is now strong. In 2014, the market share of Vietnam garment imports into the Korean market 16.4% increase compared to 2013 was 2.1% points, while Korea reached 43.44% decrease Trong point 1.59% and the share of other countries such as Myanmar, the United States, Australia, Italy … increases below 0.5% compared with 2013.
The situation of the textile and apparel imports from Vietnam USA
According to statistics of the US Customs, imports of textiles and clothing from Vietnam country in 2014, continued to increase, rising by 10.38% in volume and 14% increase in turnover compared with 2013, Higher speeds generally increased imports of US textiles was 4.69% and 2.58% of overall imports. The items that increased US imports from Vietnam in 2014 was concentrated in the textile products of synthetic fibers such as knitted garments, skirts … even cotton products increased more slowly.
Prospects for 2015
In 2015, Vietnam’s garment sector is forecast to continue positive growth with more support information, such as the world economic recovery continues, benefit from the free trade agreement has been and will soon to be signed, the stability of the domestic macro economy along with the advantages of Vietnam in the production of goods in general and in particular textiles.
For economic partnership agreements across the Pacific (TPP) negotiations are in sprint stages and the expected time negotiations ended not far off. We have 60% of Vietnam’s garment exports to the US and Japan, in which the average tariffs for textiles in the US is over 17%. Therefore, TPP was signed to promote textile export growth in two markets.
For the EU market, Vietnam is currently only accounts for 1.98% of the total import value of textile and apparel markets. When the free trade agreement Vietnam – EU was signed, the tax rate decreased from 12% to 0% would create greater competitiveness for the textiles and clothing exports to this market.
In the Russian market, the tariff applied to textiles under quota of Vietnam is very high and is calculated on the weight of the product. Free Trade Agreement Vietnam and the Customs Union (Russia, Belarus, Kazakhstan) was signed in 2015 will significantly improve tax policy, customs and create attractive to businesses.
Therefore, we can say, in 2015, export growth prospects of the garment industry of Vietnam is quite bright. Persisting with a line oriented selected average size, require difficult, bringing high fashion to promote the competitive advantages of technical and professional skills of the workers, Vietnam’s garment sector is gradually make foot in the supply chain of the textile world.
To maximize the benefits from the free trade agreement brings, investment activities produce textile materials are also being emphasized. It is expected from 2017 onwards, Vinatex can actively get over 55% of raw materials fabrics. Currently ongoing textile sector investment in production of woven and knitted fabrics. Particularly for 2 years from 2015 to 2016 Vietnam Textile and Garment Group and its subsidiaries focused on investment in raw material production areas. By the end of 2016 the total production capacity of woven fabrics from domestic sources of fiber visits more than 100 million meters (an increase of 40% compared to the existing capacity of the Vietnam Textile and Garment Group); knits add 20,000 tons / year (double the current capacity); More types of yarn 29,000 tons / year (25% increase in existing capacity).
With the above advantages, forecast exports of textiles and clothing in 2015 Vietnam will continue high growth with an increase of approximately 15% compared to 2014, reaching over $ 24 billion. In particular, exports to the US continued to achieve good growth increase of 12% compared to 2014, reaching over $ 11 billion; EU exports to maintain high growth momentum and reach US $ 4 billion; to the Japanese market at 2.9 billion increased 10% versus SD 2014 /.