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Domestic garment firms expect to do better in 2015

Update: December, 04/2014 - 09:02
Viet Nam's garment and textile exports in 2014 are likely to hit US$24.5 million, a 19-per cent year-on-year increase and the biggest in the past three years.— VNA/VNS Photo Vu Sinh
HA NOI (VNS)  — Domestic garment companies are looking forward to growth in production and business in 2015 because of positive developments in Vietnamese garment exports by year-end.

With still less than a month before the end of 2014, a number of large garment companies have already come up with production and business plans for next year, reported Dau tu (Investment Review) newspaper.

Trade and Investment Joint Stock Company (TNG) aims to increase revenues to VND1.8 trillion (US$84.9 million) and post-tax profits to VND75 billion next year. It has so far this year achieved VND1.4 trillion in revenues and VND55-57 billion in post-tax profits.

Nguyen Van Thoi, TNG chairman, said this year, the garment industry experienced a boost in exports, and TNG has based its targets on this positive development.

TNG's key export markets include the United States with 47 per cent of export value, followed by the European Union with 21 per cent, Canada with 15 per cent and Japan with 6.5 per cent.

Nguyen Song Hai, general director of Ha Noi Textile and Garment Joint Stock Company (Hanosimex), said he believed his company would reach its production and business targets and predicted this year's revenues to reach VND2.12 trillion, a 27-per cent year-on-year increase.

The company aims to increase its revenues next year by 13 to 15 per cent, Hai revealed.

In anticipation of export opportunities from free trade agreements in 2015, the company aims to set up and develop fibre, textile and garment factories projects in the central provinces of Thanh Hoa, Nghe An, Ha Tinh and Quang Binh.

Meanwhile, Thanh Cong Textile, Garment, Investment and Trade Joint Stock Company (TCM) aims to increase its revenues from VND2.54 trillion in 2014 to VND2.78 trillion in 2015, and its post-tax profits from VND164 billion in 2014 to VND170.3 billion in 2015.

For long-term development, the company has promoted investments for the completion of the construction of a garment factory at Hoa Phu Industrial Zone in Vinh Long Province in 2015.

Viet Nam's garment and textile exports in 2014 are likely to hit US$24.5 million, a 19-per cent year-on-year increase and the biggest in the past three years, according to the Viet Nam National Textile and Garment Group (Vinatex).

Le Tien Truong, Vinatex general director, also revealed that in recent years, Viet Nam's garments and textiles sector has focused on diversifying materials supply sources to ease dependence on foreign sources and increase flexible competition capacity. To date, the sector has raised the localisation rate to more than 50 per cent.

Viet Nam's upcoming free trade agreements with the European Union, South Korea and the Customs Union of Russia, Belarus and Kazakhstan, as well as the Trans-Pacific Partnership with the Asia-Pacific Economic Co-operation Forum, are expected to open up huge opportunities for the sector.

However, it needs to improve its productivity, quality and competitiveness with investment in new technologies, machinery and innovation. — VNS

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