Vietnamese textiles exports reached 9.51 billion USD in Jan-Apr 2021

Vietnamese textiles exports reached 9.51 billion USD in Jan-Apr, up 9% year-on-year, the Vietnam industry and commerce daily reported on May 5. The export value of fiber and yarn reached 1.64 billion USD, up 43.4% and that of textile, leather and footwear raw and auxiliary materials reached 642 million USS, up 14.1%. Vietnam textile industry in the first four months of this year showed a more positive signal compared with the same period last year against the background that some of Vietnam's major export markets are gradually recovering and making good use of the signed and effective free trade agreements, the Ministry of industry and Trade said.

In April 2021, Vietnam's textile manufacturing index rose by 2.7% month-on-month and 17.3% year-on-year; The apparel manufacturing industry grew by 3.9% month-on-month and 29.4% year-on-year. Overall, in Jan-Apr, the textile production index moved up by 7.8% year-on-year, the apparel manufacturing industry climbed up by 9.5%, and the leather and related products increased by 11%. Some products of the industry have achieved good growth. For example, fabric made of natural fiber has reached 201 million square meters, up 10.1% year-on-year; Textiles made of synthetic fiber and man-made fiber reached 378.3 million square meters, up 6.4% year-on-year; Leisure clothing reached 1494.2 million pieces, up 8.9%; Shoes reached 94.1 million pairs, up 13.3%.

According to the Vietnam Industrial and trade daily, Vietnam textile and apparel industry is considered to be the most deserving of FTA dividend. However, due to the lack of self-sufficiency of raw and auxiliary materials, Vietnamese domestic textile and apparel mills have not fully enjoyed FTA tariff preferences. Vietnam textile and apparel association said that the average utilization rate of certificate of origin (C/O) is about 58% for textile and apparel products exported to countries that have signed FTA, of which, the c/o utilization rate is about 60%-70% under CPTPP, while that to the EU is only 20%-30% under EVFTA.

Vietnam textile and apparel group said that the main obstacle to the low utilization rate of C/0 and the failure of enterprises to enjoy dividends is the origin of feedstock. The group mainly processes apparel, which is difficult to meet the requirements for yarn and fabric origins. In addition, domestic enterprises are also facing strong competition from foreign enterprises. Since 2015, foreign investment in textile and apparel has exceeded 20 billion USS. Most foreign-funded enterprises can realize self-sufficiency of feedstock, which can cause great pressure on domestic enterprises.

It's reported that Vietnamese government should further strengthen the development of supporting industries to meet the demand of feedstock. At present, it is necessary to focus on the development of dyeing and finishing projects, solve the problem of relying on imports of fabrics and improve the domestic value content of export commodities.