Growth well down compared to previous years, with foreign enterprises accounting for a significant majority.
Vietnam’s textile exports since the beginning of the year reached $12 million, for growth of 9 per cent compared to the same period last year, according to Vietnam Textile & Apparel Association (VITAS). But this is the lowest growth recorded for the last three years, it added, and well down on the 19 per cent recorded for the same period of last year.
Only 27.5 per cent of the $12 million came from domestic firms, with foreign-invested firms accounting for the vast majority.
The textile industry has faced many difficulties this year, with smaller orders coming from regular markets such as Japan and the EU. Orders are still being placed but most are still small, meaning the situation is likely to continue. Although the US market is showing some positive signs it cannot compensate for declining orders from Japan and the EU.
The reasons behind the smaller orders include an increase in the VND-USD exchange rate as well the economic crisis in Greece, which is affecting the EU economy, according to Mr. Le Quang Hung, Chairman of Garmex Saigon. “When Vietnam’s exported textiles to the EU and Japan reach consumers their prices are much higher and so fail to sell,” he said.
Textiles are a major export of Vietnam, reaching $24 million in 2014 and are targeted at $27 million to $27.5 million for this year.