May 28, 2018 16:54

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The textile export to target US$ 34 billion positively

06:31 | 30/04/2018

VCN- Talking to the reporter of Customs News, Mr. Truong Van Cam (photo), Vice President and Secretary General of Vietnam Textile and Apparel Association (Vitas) said: This year, the goal of textile export of US$ 34.5 billion was quite positive. However, the remaining quarters of the year as well as the next years, the sector would continue to face many difficulties because the shopping demand of consumers would not increase. 

the textile export to target us 34 billion positively
Mr. Truong Van Cam, Vice President and Secretary General of Vietnam Textile and Apparel Association (Vitas).

Based on the results of textile export achieved in the first quarter, what do you think about the prospects for the textile export of 2018?

When the world economy is forecasted to achieve higher growth than 2017 and the economic situation in the country continues to stabilize, GDP of the first quarter of 2018 reached 7.38%, the highest level compared to the same period of the last 10 years, the Vietnamese textile and apparel industry has had positive results. The total export turnover of textile and garment in the first quarter of 2018 is estimated at US$ 7.62 billion, up 13.35% over the same period last year, higher than the growth rate of 11.9% in the same period of 2017, completed 22.4% of the annual export plan.

For the export markets, the key export markets such as the United States, EU, South Korea, China, ASEAN... have increased strongly, the increasing speed is higher than the same period in 2017. The ordering situation of the enterprises is very positive. Many enterprises have received orders until the end of the third quarter. With positive prospects of the world economy as well as the country, the export plan of US$ 34 - 34.5 billion of the whole 2018 is quite satisfactory.

Besides the prospects and opportunities, what are the difficulties and challenges that the textile industry face, Dear Sir?

The internal challenge in the sector is the unbalanced development. The weakest stage is the upstream (spinning, weaving, dyeing). Currently, Vietnam has produced over 1.4 million tons of yarn per year and 90% has been exported. However, Vietnam imports quite large yarn amounts. Typically, in 2017, Vietnam imported 876 thousand tons of yarn, mainly from China, South Korea, Taiwan (China)... Source of fabric for export is also mainly import, accounting for over 80% of demand, in which, 50% of the total value from China, 18% from Korea and 15% from Taiwan, creating "bottlenecks" at textile dyeing. In addition, the export garment is mainly under the method of processing CMT; lack of high quality human resources for fiber, weaving, dyeing, design; Labor productivity has not been high yet ...

The typical external challenge is the free trade agreements (FTAs) that mostly apply rules of origin, while the Vietnamese textiles and garment import 80% of raw materials. In addition, at present, the EU is still applying 0% tax rate for the textiles imported from less developed countries such as Cambodia, Myanmar... The US is applying the preferential tax rate 0% for some commodities of Cambodia, meanwhile, the Vietnam's textile and garment industry still has to pay an average tax rate of 17.5% in the US market and 9.6% in the EU market.

Would you like to talk about the proposals of Vitas to help the textile export enterprises make good use of opportunities, develop more sustainable export in the coming time?

Vitas suggested the State should unify the planning and licensing of large textile and garment industrial zones in the northern, central and southern regions of Vietnam to call for and attract the investment in textile, dyeing sectors, to avoid overlap, and competition of labor recruitment; Support the investment of waste water treatment in these industrial zones.

In relation to import and export, the Ministry of Finance should study that the enterprises could use domestic fabrics to produce export goods without paying Value Added Tax, encouraging the enterprises use the domestic fabrics in order to be equal with the imported fabrics for processing to export. The domestic fabrics used for production, export to be exempted from tax would be based on the export contract signed with the customers to check, supervise, and avoid fraud.

For the localities, it is recommended not to attract the labor-intensive projects in order to avoid competition, creating big labor changes; At the same time, it is proposed that the provinces should facilitate the licensing of investment projects on textile and dyeing, should give priority to the enterprises investing in the modern waste water treatment technologies.

Thank you Sir!

By Uyen Nhu/ Binh Minh