8.6% growth in 6 months! VITAS not fully satisfied

by Apparel Resources News-Desk

22-July-2019  |  2 mins read

Garment factory in Vietnam
Image Courtesy: pearlglobal.com

8.6 per cent growth in the first half of 2019!

That’s what the apparel and textile industry of Vietnam has achieved after clocking an export revenue of US $17.9 billion in the January to June period.

This was confirmed by the Vietnam Textile and Apparel Association (VITAS) at a press conference held in Hanoi on 19 July.

Despite a growth of 8.6 per cent over the same period in 2018, Truong Van Cam, Vice Chairman, VITAS, didn’t seem too happy as he said that the number of orders so far in 2019 has not been as good as it was in 2018.

He further added that the number of orders of many companies is equal to only 70 per cent of what it was during the same period in 2018 and to add to it the use of yarn and accessories too is facing lot of challenges.

More demanding requirements from the buyers has been chiefly instrumental in bringing down the number of orders this year with stress on lowering the prices. Also, VITAS believes that there is pressure on increasing trade barriers including import tariffs.

What’s striking is that the apparel and textile industry has grown less than 9 per cent in the first 6 months in the country. The industry requires to grow by at least 11 per cent if it has to achieve the projected export target of US $ 40 billion by the year end, as stated by the Vice Chairman.

Notably, in the first 5 months, the country has attracted foreign direct investment worth US $ 700 million in apparel and textile sector, with China and South Korea being principal investors.

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