Fiber export turnover reaches record $5.6 billion in 2021

Viet Nam's export turnover of fiber of all types reached a record high of US$5.6 billion in 2021, despite the severe impact of the COVID-19 pandemic, data of the General Department of Viet Nam Customs showed.

It was up nearly 9 per cent in volume and over 50 per cent in value against last year's figures.

Last year, the price of fiber rose by 25 per cent compared to 2020. Of these, cotton experienced the highest growth, followed by polyviscose and polycotton. Many enterprises including the Ha Noi Textile and Garment Joint Stock Corporation (Hanosimex) have benefited from the fiber price hike.

Despite the outbreak of the pandemic last year, Hanosimex's subsidiaries still operated at full capacity. The corporation attributed it to the fact that they had received orders early and had been proactive in securing materials for their production.

Thanks to a rise in fiber price and good trading, the corporation's revenue was estimated to reach VND897 billion ($39.5 million) last year, representing 146 per cent of the year's target. It earned VND675 million from exporting fiber, doubling that of 2020. The profit of Hanoisimex was VND86.3 billion last year, seven times higher than the target of VND12 billion, the Dau Tu (Investment) newspaper reported.

According to Nguyen Ngoc Binh from the Viet Nam National Textile and Garment Group (Vinatex)'s production and business department, enterprises in the fiber industry have gained impressive achievements in terms of production, business and exports.

He said that more than 50 per cent of Vinatex's profit came from the industry in 2021.

A Vinatex's report showed that the corporation recorded more than VND16.4 trillion in revenue last year, up 10 per cent compared to the previous year and pre-tax profit doubling year-on-year to VND1.2 trillion.

The corporation has recovered to the same level as before the pandemic. This resulted from an investment strategy on materials that has been carried out over the last five years, Binh said, adding that despite the COVID-19 pandemic, two modern factories were put into operation by Vinatex in 2021 to meet the fiber demand for 2022.

With the resumption of production and supply chains as well as safe adaptation to COVID-19 pandemic measures, enterprises engaged in fiber manufacturing and exporting have enjoyed advantages at the beginning of this year.

Major companies, namely Soi The Ky, Thien Nam and Phu Bai, announced that they are fully booked for the first quarter and some customers like China and the Republic of Korea have pledged to maintain orders from Vietnamese suppliers in the long term.

Ho Le Hung, director general of Hanosimex, said that the corporation will tap the market opportunity in the first months of 2022 to contribute to 50 per cent of the estimated profit of VND70 billion. — VNS