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Garment and textile exports increase market share in US

February 17, 2021 by vov.vn

According to a report published late last year by McKinsey, the global fashion industry’s profits endured a fall of 93%, with more than 10 major fashion brands going bankrupt and roughly 200,000 workers in the fashion supply chains in the US losing their jobs.

Furthermore, the Vietnamese market share of garments and textiles enjoyed growth last year due to uninterrupted production activities, achieving 20% in the US market for the first time and taking the lead in terms of market share for several months.

January alone saw the export turnover of the local textile and garment industry rise by 3.3% on-year to approximately US$2.6 billion, of which some products enjoyed a high growth rate of between 9% and 36%.

This year marks the first time in 25 years that Vietnamese textile exports have recorded a negative growth rate of 10.5%, only reaching US$35 billion in comparison to US$39 billion in 2019.

Despite this, amid a global aggregate reduction of over 22%, the results of the local textile and apparel industry can be considered to be relatively positive.

Le Tien Truong, general director of the Vietnam Textile and Garment Group (Vinatex), states that the global textile market is anticipated to bounce back during the second quarter of 2022, adding that there are numerous challenges ahead for the sector due to the complicated nature of developments caused by the COVID-19 pandemic.

In line with this, the domestic textile and garment industry is anticipated to achieve an export turnover of some US$39 billion this year, with local businesses expected to boost market expansion and maximise benefits from free trade agreements (FTAs) such as the EU-Vietnam Free Trade Agreement (EVFTA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) to bolster exports.

Vietnam trade turnover hits US$1.67 billion during week-long Tet holiday

February 18, 2021 by hanoitimes.vn

The Hanoitimes – Vietnam exported products and goods to over 80 markets in Tet holiday, with China being the largest buyer by spending US$189 million on Vietnamese commodities, or 26% of total exports.

Vietnam’s trade turnover during the week-long Tet (Lunar New Year) holiday [February 10-16] surged 53% against the same perios last year to US$1.67 billion, according to the General Department of Vietnam Customs (GDVC).

Cargos handling at Hai Phong port. Photo: Cong Hung

Upon breaking down, the country’s exports were estimated at $730 million and imports of $940 million, representing increases of 79% and 37%, respectively, against 2020’s Tet holiday.

“In just seven days from February 10-16, 960 traders filed a combined of 10,300 customs declarations, an increase of 59% compared to last year’s Tet ,” noted the GDVC.

Among Vietnam’s major export staples during this period, phones, electronics products and computers made up a lion share at 80% of total export turnover, posting corresponding figures of US$332 million and US$251 million, respectively.

Meanwhile, the country mainly imported computers and electronic products during the seven-day period worth US$538 million, or 57% of total imports, followed by phones and parts with US$153 million, or 16%.

Vietnam had export products and goods to over 80 markets during Tet holiday, with China being the largest buyer by spending US$189 million on Vietnamese commodities, or 26% of total exports.

As of February 16, Vietnam’s trade revenue increased sharply by 31% year-on-year to US$74.51 billion with a trade surplus of US$2.63 billion, around the same figure of trade surplus for the first quarter of 2020.

Vietnam posted an all-time high trade surplus of US$19.1 billion in 2020, far exceeding the record figure of US$10.9 billion in 2019. This was also the fifth consecutive year that the country recorded a trade surplus, and a second year in a row with a trade turnover of over US$500 billion.

Vietnamese goods shipped to 80 markets globally over Tet

February 18, 2021 by vov.vn

China, Vietnam’s biggest trade partner, imported US$189 million worth of products, making up 26% of Vietnam’s total export revenue.

Exports to the United States came in second with US$152 million, accounting for 21% of the total export revenue. This was followed by the Republic of Korea (RoK) with US$67 million, 9% of the total, and Hong Kong (China) with US$57 million, making up 8%.

Local firms imported goods from 57 countries and territories worldwide throughout the reviewed period. The largest volume of imports came from the RoK with US$355 million, accounting for 38% of total import revenue. Elsewhere, China came in second with US$159 million, making up 17%, while the US, Ireland, and Taiwan (China) came in third, fourth, and fifth, accounting for 9%, 8.5%, and 8%, respectively.

According to the General Department of Vietnam Customs, Vietnam’s import and export turnover during the annual holiday hit US$1.67 billion, up 53% from last year.

Phones and parts posted the largest export turnover among export items with US$332 million, accounting for 45% of total exports.

Vietnam mainly imported computers and electronic products and components with a value of US$538 million, or 57% of total imports.

Since the start of the year to February 16, the country reported total import and export revenue of US$74.5 billion, an increase of 31% on-year. Of the total, export revenue hit US$38.5 billion, securing a trade surplus of US$2.6 billion.

Vietnamese apparel enterprises take action to gain foothold in export markets

February 25, 2021 by sggpnews.org.vn

Prioritizing the production of convenience goods

Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association (Vitas), shared that the Covid-19 pandemic, which lasted from the beginning of last year to now, had significantly changed the structure of products of the garment and textile industry. For instance, the line of suits, high-end men’s and women’s shirts, and high-end women’s dresses had been reduced by 80 percent. On the contrary, the product line of mid-range and convenient products, home wear dresses, and spandex products had highly increased, especially in the main export market of the US.

Sharing the same point of view, Mr. Le Tien Truong, Chairman of the Board of Directors of Vietnam National Textile and Garment Group (Vinatex), said that from last year to now, enterprises under the group have rapidly changed their commodity structure from high-end suits and high-end men’s and women’s shirts to protective clothing and knitwear. This change is also considered the main demand trend in 2021.

Not only that, the garment and textile importers of Vietnam in many markets around the world also have changes in selecting export enterprises. Accordingly, priority is given to the import of apparel products of enterprises that are committed to environmental protection, such as adopting measures to minimize waste generation, enhance recyclability, and reduce the use of fossil energy. As for fabric materials, priority is also given to environmentally friendly fabrics that do not use chemicals in the process of weaving and dyeing or dyeing without generating wastewater.

The transformation in consumer tastes and the search for partners has forced Vietnamese enterprises to quickly convert their investments to suit the new market needs.

According to Mr. Vu Duc Giang, three development strategies had been quickly deployed by domestic garment and textile enterprises. Firstly, they would review all the changes in consumer demand in the export markets. Particularly, they would focus on reviewing carefully key markets, such as the US, which accounts for 42 percent of total export turnover, and Europe.

Secondly, their production technologies would go green, reducing the use of fossil energy, cutting gas emissions, and increasing recycling waste. Enterprises would also combine this strategy with the improvement of administrative skills.

Thirdly, enterprises would urgently invest in developing products along with their brands. This is the foundation for the industry to build a more sustainable foothold in the export markets, especially in the context that several free trade agreements (FTAs) signed by Vietnam are opening up many advantages in terms of tax rates and competitiveness for garment and textile products.

Looking back to 2020, the Covid-19 pandemic had broken many raw material supply chains, as well as caused bankruptcy to many major global apparel brands. It is very important to adapt quickly to market changes. Besides, in the coming time, according to many experts, enterprises must take into account the ability to fulfill large orders with short production time because the pandemic will possibly remain complicated, and logistics activities face many difficulties.

Linking to control trade fraud

In another perspective, economic experts said that exporting enterprises should make efforts to prevent the risk of being investigated and imposed trade remedies. Information from the American Apparel and Footwear Association said that the US government is still investigating to impose new punitive tariffs on imports into the country, including garment and textile products exported from Vietnam. Moreover, in November last year, the US Department of Commerce (DOC) officially announced to initiate an anti-dumping investigation on polyester-textured yarn (PTY) exported from Vietnam.

Mr. Do Thang Hai, Deputy Minister of Industry and Trade, said that the application of trade remedies will cause much harm to domestic enterprises, not only in the US market but also in many other markets due to the domino effect. To prevent this risk, it is essential to implement dual solutions to effectively support enterprises. Accordingly, enterprises themselves need to link up to prevent the act of abetting foreign enterprises in changing the origin of their products. The Government needs to build preferential policies to attract investment without prioritizing investment attraction in industries that are the strengths of domestic enterprises. This will help to reduce competitive pressure in the export markets.

The representative of Vitas suggested that the Government soon negotiates and signs strategic cooperation with the US to increase export advantages for the garment and textile industry in particular and other industries that are also exporting to this market, in general. Moreover, many trade counselors also said that Vietnamese apparel and textile enterprises need to expand their export market share to Northern Europe and Australia.

In these markets, Vietnamese export products merely account for a modest proportion with about 2 percent of total imports from countries and territories around the world. These markets have signed FTAs with Vietnam, so the import tariffs are also extremely preferential. Therefore, increasing exports in these areas not only helps enterprises to increase market share but also reduces the risk of being imposed trade remedies.

By Ai Van – Translated by Thuy Doan

Tra fish exports eye US$1.5 billion turnover this year

November 11, 2020 by vov.vn

The COVID-19 pandemic has taken its toll on pangasius sales, prompting its exports to decline to approximately US$1.04 billion during the initial nine months of the year.

Faced with a decline in exports, local firms focused on improving product quality, applying new technology to farming methods, and developing new sales channels and brands specifically for Vietnamese Tra fish.

The Vietnam Pangasius Association reports although Vietnamese Pangasius has already been shipped to several markets worldwide, its exports over the past decade have been dependent on the Chinese market. In fact, China imports Vietnamese tra fish before selling it on to Russian and European markets.

Tran Anh Thu, vice chairman of the People’s Committee of An Giang province, underscores the importance of building national brands specifically for Tra fish and restructuring farming and processing activities, alongside ensuing food safety and hygiene criteria in order to increase exports to potential markets and enhance competitiveness with other regional rivals such as India, China, and Bangladesh.

According to the Vietnam Pangasius Association, domestic pangasius farming is encountering numerous challenges caused by poor-quality breeds, climate change, and saline intrusion in provinces throughout the Mekong Delta and other coastal localities.

Furthermore, local businesses face hurdles when trying to overcome both technical barriers and new regulations imposed by Chinese authorities, along with grasping new provisions set out in the EU-Vietnam Free Trade Agreement (EVFTA).

Vo Hung Dung, vice chairman of the Vietnam Pangasius Association, stressed that tax incentives under the EVFTA are expected to create a wealth of opportunities for Vietnamese seafood processors, including Tra fish processors, as they strive to expand the export market. Indeed, domestic firms are attempting to gain a competitive edge against other regional rivals such as India and Thailand because they have not signed such an FTA with the EU.

To develop in a sustainable manner, the Vietnam Pangasius Association has advised Vietnamese businesses to improve product quality by applying technology and complying with criteria in pangasius farming and processing.

Dung underlines the need to promote both domestic and international consumption markets, set up new sales channels, and build brands for Vietnamese pangasius.

To boost Pangasius exports to demanding markets such as Europe, America, and the Middle East, An Giang province, for example, has established a specialised farming area of 600 hectares that utilises high technology as a pilot scheme and it has then replicated the model into three additional areas.

In these areas, the province has supported enterprises in dealing with wastewater treatment, and building area codes and geographical indications for pangasius products in order to meet the standards set by demanding markets.

Vietnam-UK trade turnover soars after post-Brexit free trade deal

February 28, 2021 by e.vnexpress.net

Citing data from Vietnam Customs, the Europe-America Market Department under the Ministry of Industry and Trade said export-import turnover between Vietnam and the U.K. in January reached over $657 million.

Vietnam exported to the U.K. over $598 million worth of goods, an increase of 84.6 percent from January last year and 56.5 percent from December. This growth amid an ongoing Covid-19 pandemic showed the promise of Vietnam-U.K. Free Trade Agreement (UKVFTA), which came into effect on Dec. 31 last year, said the ministry.

As per the agreement, the U.K. would remove import taxes on 99.2 percent of tariff lines within six years, equivalent to 99.7 percent of Vietnam’s export turnover to the country. The EU had already promised Vietnam a tariff rate quota (TRQ) with an import tax of 0 percent for some products, while export industries expected to benefit greatly from this agreement include seafood, rice, textiles, wood, vegetables and footwear.

In January, the ministry said some major products exported from Vietnam to the U.K. included seafood, vegetables, phone parts, computers and electric components, all of which increased from the same period last year.

In return, imports from the U.K to Vietnam reached over $59.3 million, a 34.3 percent increase year-on-year. Some major products included metal, pesticide and textile materials, according to the ministry.

Last year, export-import turnover between the two countries reached $5.64 billion, in which Vietnam’s exports to the U.K. reached $4.95 billion, resulting in a trade surplus of $4.27 billion. The U.K. continued to be Vietnam’s third-biggest trade partner in Europe, behind Germany and the Netherlands.

By December last year, the U.K. had 411 investments projects in Vietnam with a total registered capital of $3.84 billion, ranking it 15th among countries and territories investing in Vietnam. Important projects include those regarding finance, banking and renewable energy.

The UKVFTA was signed in London on Dec. 29 last year to maintain Vietnam and the U.K.’s existing relationship once the Brexit transition period ends on Dec. 31.