Growth of 10% put down to promise in free trade agreements.
In the first four months Vietnam’s textile exports stood at $6.55 billion, an increase of 10.2 per cent year-on-year, according to the Ministry of Industry and Trade (MoIT). April export turnover was estimated at $1.7 billion, 10.4 per cent higher than in April last year.
Major textile enterprises had stable orders going into the second quarter, MoIT said, with almost 62 per cent of clothing enterprises reporting more orders compared to the first quarter.
Manufacturing activities in the textile industry were also healthy. In the first four months about 90.9 million square meters of natural fabric were produced, an increase of 0.9 per cent year-on-year, and 215.7 million square meters of synthetic fabric, 1.5 per cent higher. Production stood at 946.4 million items, an increase of 0.1 per cent.
The Vietnam Textile and Apparel Association (Vitas) said that the number of investors in the textile sector is increasing because they hope to seize the opportunities presented by free trade agreements (FTAs) such as the TPP, the Vietnam - EU FTA, and the recently-signed Vietnam - South Korea FTA. The association predicted that Vietnam’s textile sector would be among the greatest beneficiaries of the zero tax rates established under these agreements.