Illustrative image (Source: VNA)
Hanoi - Garment and textile enterprises have received enough orders to keep them busy through the first quarter of this year, said Le Tien Truong, General Director of the Vietnam National Textile and Garment Group (VINATEX).
At a press conference on January 9, Truong said that in 2017, the group targets a rise of 11 percent in export turnover, 14 percent in production value, and 12 percent in revenue.
He predicted that this year, Vietnam’s garment and textile sector will face numerous challenges, including a lack of support in taxation policies as several important trade deals such as the EU-Vietnam free trade agreement and the Trans-Pacific Partnership, will not become effective in 2017.
Competition will become fiercer as other countries will continue attracting orders thanks to their advantages in tax and exchange rate, he said, adding that the instability in the EU economy will also affect the industry.
Last year was gloomy for the world apparel sector. Major importers, including the US, the EU and Japan experienced low or decreased demand for garment and textile products, he noted.
Vietnam’s apparel also saw under-expectation result with 28.3 billion USD in export, up 5.7 percent year on year. VINATEX earned over 2.5 billion USD, a rise of 5 percent over 2015, with a pre-tax profit of over 41 trillion VND on a 5 percent year on year increase. Its employees’ average income rose 8 percent over the previous year to reach 6.7 million VND per month.
Truong also said that the results showed the great efforts of the sector, as Vietnam recorded higher growth than major competitors such as China, India, Bangladesh and Indonesia.-VNA