Vietnam’s textile and garment sector benefits from FTAs, trade war

The US-China trade war and new FTAs have given a push to Vietnam’s textile and garment industry, helping it gain two-digit growth rates.

The General Department of Customs (GDC) reported that in the first five months of 2019, Vietnam exported $12.1 billion worth of textiles and garments, an increase of 11.5 percent compared with the same period last year, accounting for 12 percent of total export turnover

Vietnam’s textile and garment sector benefits from FTAs, trade war



Vietnam’s products mostly went to the US market which consumed 46.7 percent of Vienam’s textile and garment exports, valued at $4.42 billion, up by 8.8 percent. Japan consumed $1.16 billion worth of products.

As for Canada, the textile and garment exports to the market in the first five months reached$280.06 million, accounting for 2 percent of total export turnover only, but this represented the high growth rate of 22.3 percent.

According to the Ministry of Industry and Trade (MOIT), more than 400 C/Os have been granted to the exports to Canada since March 8, most of which were textiles and garments, tmwhich enjoyed tax cuts right after CPTPP took effect.

Do Thi Thu Huong, Trade Counsellor to Canada, said the tariff gap will serve as the driving force to boost Vietnamese exports to the market.

According to the Ministry of Industry and Trade (MOIT), more than 400 C/Os have been granted to the exports to Canada since March 8, most of which were textiles and garments, tmwhich enjoyed tax cuts right after CPTPP took effect.

 

Statistics showed that exports to Canada have increased by over 70 percent and exports to Mexico by 8 percent. Both are countries that Vietnam did not have FTAs with in the past.

“This shows that CPTPP has begun bringing benefits,” an MOIT official said

VNDirect Securities, in its latest report, also commented that the textile and garment industry is getting benefits from trade integration, saying that the industry is ‘witnessing the highest growth rate in the world with a positive outlook’.

Vietnam’s textile and garment value grew by 13.1 percent in 2008-2017, far exceeding the global average growth rate of 4.9 percent.

The diversification of export markets will help Vietnam ease reliance on the US market and ensure positive outlook for the industry. The exports to the US now amount to 38.6 percent of Vietnam’s textile and garment exports.

VNDirect Securities’ analysts believe that the global supply chain relocation from China to Vietnam would bring more orders to Vietnam and help it expand the market share in the US.

“Vietnam's production capacity is improving. Vietnam's textile value chains are being improved thanks to the strong flow of FDI, focusing on upstream production (yarn and fabric),” the report said.

“Garment enterprises have turned to advanced production methods such as FOB and original design manufacturing (ODM), which help improve profit margins,” the Hanoi-based securities company said.

Mai Lan

VN garment and footwear firms will have to wait for EVFTA benefits

VN garment and footwear firms will have to wait for EVFTA benefits

Textile, garment and footwear products made in Vietnam will not enjoy immediate tariff cuts after the EU-Viet Nam Free Trade Agreement (EVFTA) comes into effect.

Textile and garment industry sees great opportunities in EVFTA

Textile and garment industry sees great opportunities in EVFTA

A number of industries that make products for export, including textiles and garments, are expected to change for the better if they can take full advantage of the value chain from EVFTA.

 
 

Other News

.
Japan’s investment in Vietnam soars 90%
Japan’s investment in Vietnam soars 90%
BUSINESSicon  24/11/2021 

Japanese investors poured approximately US$3.4 billion into Vietnam from January to October 2021, soaring 90% compared with the same period last year.

42 wind power projects permitted to operate commercially
42 wind power projects permitted to operate commercially
BUSINESSicon  24/11/2021 

A total of 42 wind power plants featuring a total capacity of 2,131.3MW have been approved for commercial operation as of mid-November, according to data released by Electricity of Vietnam (EVN).

Vietnam-Malaysia-India container shipping route to be inaugurated
Vietnam-Malaysia-India container shipping route to be inaugurated
BUSINESSicon  24/11/2021 

The Vietnam Maritime Corporation (VIMC) announced on November 23 that it will inaugurate a container shipping route linking Vietnam, Malaysia and India on November 25.

Tax rescheduling proposed to support local automobile industry
Tax rescheduling proposed to support local automobile industry
BUSINESSicon  24/11/2021 

The Ministry of Finance (MoF) has proposed rescheduling excise tax payments for local automobile manufactures and assemblers.

HoSE to develop other covered warrant products
HoSE to develop other covered warrant products
BUSINESSicon  24/11/2021 

The Ho Chi Minh Stock Exchange (HoSE) plans to develop products like covered warrants bought based on underlying assets including indices/ETF and put warrant, to further improve covered warrant products on the Vietnamese stock market.

Policy choices for Government to design economic master programme
Policy choices for Government to design economic master programme
BUSINESSicon  24/11/2021 

Vietnam’s Government is planning a master programme to gear up for a post-pandemic recovery, which this time requires sophisticated organisation and effective implementation to ensure long-term efficiency.

Vietnam seeks new-generation ODA from Japan
Vietnam seeks new-generation ODA from Japan
BUSINESSicon  24/11/2021 

Prime Minister Pham Minh Chinh suggested Japan provide Vietnam with new-generation official development assistance with maximum incentives and the simplest procedures.

FTAs momentum for Vietnam's exports
FTAs momentum for Vietnam's exports
BUSINESSicon  24/11/2021 

Since joining the World Trade Organisation 15 years ago, Viet Nam has become a part of 17 FTAs, which are either under negotiation or underway. This has helped create a momentum for the country's exports.

VIETNAM BUSINESS NEWS NOVEMBER 24
VIETNAM BUSINESS NEWS NOVEMBER 24
BUSINESSicon  24/11/2021 

VN seeks Japanese investments in renewable energy

Textile - garment industry may flourish in 2022: insiders
Textile - garment industry may flourish in 2022: insiders
BUSINESSicon  24/11/2021 

The textile - garment industry is expected to thrive and earn 40 billion USD in exports next year, when the COVID-19 pandemic is forecast to ease in Vietnam and the world.

VIETNAM BUSINESS NEWS NOVEMBER 23
VIETNAM BUSINESS NEWS NOVEMBER 23
BUSINESSicon  23/11/2021 

Demand for industrial, logistics estates at core of enquiries next year: Savills

Enterprises of agricultural export to China strive to adapt to new market regulations after COVID-19 impacts
Enterprises of agricultural export to China strive to adapt to new market regulations after COVID-19 impacts
BUSINESSicon  23/11/2021 

China's increasing demand for imports of high-quality agricultural products has contributed to boosting the recovery of domestic production and export after the COVID-19 pandemic impacts.

Vietnam - US trade likely to reach 100 billion USD this year
Vietnam - US trade likely to reach 100 billion USD this year
BUSINESSicon  23/11/2021 

Vietnam–US trade could hit 100 billion USD in this year, up 221 times against the figure in 1995 when the two countries normalised relations.

Special working groups set up to speed up public disbursement
Special working groups set up to speed up public disbursement
BUSINESSicon  23/11/2021 

Prime Minister Pham Minh Chinh has decided to establish six working groups to accelerate the disbursement of public investment capital in 2021 at ministries, agencies and localities.

Vietnamese investors pour money into realty bonds despite China’s Evergrande case
Vietnamese investors pour money into realty bonds despite China’s Evergrande case
FEATUREicon  24/11/2021 

Realty bonds often catch special attention in the primary market thanks to attractive interest rates, even though warnings are often issued about their risks.

Vietnam Airlines to fly non-stop to US
Vietnam Airlines to fly non-stop to US
FEATUREicon  24/11/2021 

The first commercial flight from HCM City to the West Coast of the US is scheduled to take off on November 28, 2021. Vietnam Airlines’ CEO Le Hong Ha talks about the opening of the special air route.

Vietnam seeks VND90 trillion to build railways connected to seaports
Vietnam seeks VND90 trillion to build railways connected to seaports
BUSINESSicon  24/11/2021 

Vietnam Railway Authority (VRA) has submitted a plan to call for foreign investment in two railways to be connected to the Lach Huyen and Cai Mep – Thi Vai ports.

Enterprises of agricultural export to China strive to adapt to new market regulations after COVID-19 impacts
Enterprises of agricultural export to China strive to adapt to new market regulations after COVID-19 impacts
BUSINESSicon  23/11/2021 

China's increasing demand for imports of high-quality agricultural products has contributed to boosting the recovery of domestic production and export after the COVID-19 pandemic impacts.

Petrol, animal feed, fertilizer prices cause higher production costs
Petrol, animal feed, fertilizer prices cause higher production costs
FEATUREicon  23/11/2021 

The increase in price of fuels and input materials of many products has occurred in 2021. Notably, the price fever of many commodities has not shown any signs of "cooling down".

Vietnam eyes 4 GW offshore wind power capacity by 2030
Vietnam eyes 4 GW offshore wind power capacity by 2030
BUSINESSicon  23/11/2021 

Vietnam will increase offshore wind power capacity to 4 GW from 1 GW and onshore wind power capacity to nearly 17.34 GW from about 1.26 GW by 2030, according to the latest draft of the National Power Development Plan VIII.

 
 
 
Leave your comment on an article

OR QUICK LOGIN