|Garments are made in the central province of Thua Thien Hue. The garment and textile sector sees export turnover of more than US$24.5 billion in 2015. — VNA/VNS Photo Danh Lam
HA NOI (VNS) — The garment and textile export industry anticipates a good year in 2015 following its rapid growth in 2014, which indicated an export turnover that could possibly exceed US$24.5 billion.
Experts disclosed that the impending free trade agreements (FTAs) would create breakthroughs for the sector's export.
Ministry of Industry and Trade's Import – Export Department Director Phan Van Chinh shared that a huge potential could be seen for garment and textile exports to expand even in traditional markets.
He pointed out that Viet Nam's exports to the European Union (EU) market accounted for merely one per cent of the bloc's import value of garment and textile products. The impending Viet Nam-EU FTA, which cuts the tariff rate from the current 12 per cent to zero, is expected to boost Viet Nam's exports of garment and textile products to the bloc.
The Trans-Pacific Partnership (TPP) would also bring in opportunities for the garment and textile companies to expand markets, especially in the United States.
The current tax rates imposed on the Vietnamese garment and textile products exported to the United States are approximately 17–18 per cent. The signing of the TPP would cause the tariff to be cut gradually to zero.
The FTA between Viet Nam and the Customs Union of Russia, Belarus and Kazakhstan will be signed at the beginning of next year. This will help increase the garment and textile exports to Russia.
Industry and Trade Deputy Minister Ho Thi Kim Thoa disclosed that Vietnamese firms need to enhance their competitiveness to improve their position in the global garment and textile value chain. This should be accomplished along with the development of brands, which she described as indispensable.
Thoa also urged the garment and textile companies to improve their quality to meet the requirements of the import countries and to adhere to the guidelines set by the FTAs.
Experts also revealed that the impending FTAs helped attract importers, who want to take advantage of the agreements, to transfer orders from other countries to Viet Nam.
The Viet Nam National Textile and Garment Group shared that many companies under their leadership managed to earn export orders at the end of next year's first quarter. — VNS