Garment Industry in Vietnam In the past years

Garment Industry in Vietnam

• In the past years, garment industry of Vietnam has achieved a lot of success in the resolution of employment for workers as well as the contribution to the country’s export turnover. • Vietnam is listed in the top 10 leading garment exporters in the world making it the world’s ninth largest garment exporter.

• Currently, the United States market is the largest export market of Viet Nam, accounting for 57% market share for export, • EU market accounts for 18%, • Japan is 9%. • Export to Japan & Taiwan is being recovered. • Activities of expanding the market into Africa and other countries in Asia are quite good. • Export turnover of garment products to these markets is highly increased.

• Export turnover of garment products of Viet Nam is constantly increasing over the years.

• In 2003, the export turnover was just at USD 3. 6 billion; • then in 2004, it reached USD 4. 3 billion; • in the end of 2007, Vietnam had more than 2, 500 textile and garments businesses in operation, they employed about two million workers, and the export turnover hit USD 7. 8 billion. • LATEST NEW: Garment Industry is ranked 2 nd among the Vietnam’s biggest export industries with USD 9. 1 billion for the year of 2008, 18% increase compared with the same period last year.

Export turnover of garment products of Viet Nam is constantly increasing over the years.

In the unfavourable context of global economy, with high inflation, and especially the cutting-down of spending in the main import markets as U. S. , EU, Japan. . . , the 2008’s result has clearly shown the efforts of the garment export enterprises to overcome the difficulties, and the flexibility of the government policies.

2008’s REVIEW

• From January to August 2008, garment enterprises had to face the fluctuation of exchange rate, scarcity of U. S. dollars, that heavily affected the import of raw materials for production. In addition, bank interest rate was too high, exceeding several times higher than the profits of enterprises, so the expanding investments were stuck. • From September to the end of the year, the industry coped with the affect from the economic crisis in America and Europe. Exports to the U. S. had decreased 5. 15% only in October and November. Especially since the end of November, the orders of Quarter 1/2009 were cut off drastically. The small and medium enterprises faced many difficulties when signing new orders, 7 -15% of enterprises have been closed, some enterprises owned by Korean, Taiwanese. . . quit the factories.

• In addition, since early 2007, Vietnam has been closely monitored by the monitoring program of apparel imports that the U. S. applied.

However, Vietnam remains the growth with 2 digits, which is 18% for the whole year, while many export countries in the world get negative growth.

According to the evaluation of the World Association of Apparel, Vietnam can remains growth due to high stability of export market. Moreover, garment companies have sought to expand beyond their traditional markets • Some had entered the Middle East with brocade, • Other’s products had been in the Czech Republic and South America, • Fashion products of Vietnam is officially exported to Algeria, • Others have conquered two more EU countries when just introduced the first shipments to Portugal and Spain…

In addtion to the efforts of the community of garment enterprises, the Government and especially, the Ministry of Industry and Commerce, together with the Vietnam Textile Association (VITAS) have implemented several flexible external and internal measures to deal with trade barriers. Furthermore, after 2 -year monitoring, on November 26, 2008, US Department of Commerce officially announced that there is insufficient evidence to warrant self-initiating an antidumping investigation. This is the final review under the import monitoring program that will conclude at the end of this Administration.

In the year of 2009, the export of garment products of Vietnam could get more difficulties.

• The world economy will still not escape from degradation. • The demands from two large markets, the U. S. and the EU, will decrease about 15%, as the economic growth forecast of America's and the EU’s is negative. • Therefore, export growth of garment industry in 2009 is expected to increase only 5%, reaching about 9. 5 billion USD