Vietnam's garment and textile export turnover is expected to reach 19 billion USD this year, 1 billion USD higher than the set target.
According to the Ministry of Industry and Trade, the January-October figure is 14.8 billion USD, representing a year-on-year increase of 18.7 percent.
The Republic of Korea, the US and Japan are the biggest importers of Vietnamese products, posting growth rates of 68 percent, 37 percent and 35 per cent, respectively, against the same period last year.
Local textile and garment companies are anticipating the success of the Trans-Pacific Partnership (TPP) negotiations, which would promote export turnover to several markets, especially the US, thanks to zero export duties.
Industry insiders said participation in the agreement would create favourable conditions to boost Vietnam's textile and garment sector as the third key industry of the country.
However, businesses said that they had to compete with rivals from other textile producing countries in buying materials and that material suppliers took the advantage of material shortages to increase material prices by 10-15 percent. These affected the accomplishment of orders, they added.
The Vietnam National Textile and Garment Group (Vinatex) is accelerating investment in the central region of the country as part of the national strategy for the garment and textile industry until 2020.
In a recent working trip to central Nghe An province, Vinatex general director Tran Quang Nghi said the region would be a destination for many large projects due to their advantageous geographical positions, developed traffic systems and abundant human resources.
"The group will invest in Nghe An so that it will become a regional garment and textile centre, which is especially important as Vietnam prepares to enter new free trade agreements," he said.
Hanoi Textile Garment Corp (Hanosimex) Deputy General Director Nguyen Song Hai said central Nghe An, Ha Tinh and Thua Thien-Hue provinces would be strategic investment areas for the Vinatex affiliate in the coming years, with local incentives stimulating their investment.
In Nghe An, the corporation poured about 700 billion VND (33.33 million USD) into new projects in the last two years and opened two textile mills with a combined annual capacity of 8.7 million products in April.
The firm was finalising procedures to build another 152 billion VND (7.24 million USD) cotton mill in the province's Nam Dan district in the first quarter of next year. The facility would produce 4,000 tonnes of cloth per year when operational, according to Hai.
Garment 10, another Vinatex member company, said it was in the final phase of an expansion of the central Quang Binh province-based Ha Quang factory, which produces shirts for export.
Vinatex said it was also completing procedures to build a 205 billion VND (9.76 million USD) vest factory, Vinatex Bong Son Garment, in Binh Dinh province's Hoai Nhon district. Vinatex Bong Son Garment Co Ltd. had been established and local authorities had agreed to rent land for implementing the project.
Source: VNA