Export flourishes in key markets

According to the Vietnam Textile and Apparel Association, compared with the "gloomy picture" in 2020, from the beginning of 2021 until now, textile and garment exports have been better despite the strong outbreak of the Covid-19 epidemic. . In which, some industries also achieved breakthrough growth. For example, the yarn industry has an export turnover of $2.6 billion in the first half of 2021. Yarn exports are expected to reach $3.8-3.9 billion this year.

In the first six months of the year, Vietnam's textile and garment exported 18.79 billion USD worth of goods, up 21.27% over the same period in 2020 and 4.23% over the same period in 2019.

Besides, cloth products achieved an export turnover of 1.18 billion USD, up 34.7% over the same period last year. Particularly for domestic fabrics, 6 months of exportation was 352 million USD, up 80% compared to the same period last year.

Notably, from the beginning of the year until now, the export growth of the textile and garment industry has prospered in many key markets such as the EU, the US, Japan, China, Korea... Typically, in the EU market in the past six months, it has reached export turnover of 2.263 billion USD, up 4.85% over the same period last year. "It can be seen that the Vietnam - EU Free Trade Agreement (EVFTA) is an extremely effective lever for textiles and garments to increase market share in this world's most potential market." - Mr. Truong Van Cam - Vice Chairman of Vietnam Textile and Apparel Association affirmed.

According to Mr. Cam, the tariff incentives in the EVFTA Agreement are an important foundation for Vietnamese textiles and garments to improve their competitiveness through cost reduction. This is a great advantage compared to competitors in the European market.

In the Japanese market, the export of fiber and textile yarns of all kinds reached US$1.43 billion, up 57.1% over the same period last year. In China, exports of textiles and garments in the first 6 months of 2021 reached nearly USD 630 million, up nearly 12%. In the US, textiles and garments accounted for 16% of exports and reached 6 billion USD in the first 5 months, up 24.1%; Meanwhile, in the Korean market, textile and garment exports reached 1.07 billion USD, up 4% and accounting for 12.2% of the export proportion.

Breakthrough opportunity in the second half of the year

According to information from the Vietnam Textile and Apparel Association, currently, our country's textile and garment enterprises have stable and long-term orders. Even many businesses have had enough production orders until the end of the fourth quarter of 2021.

“From now until the end of the year, the import and export activities of the textile and garment industry will continue to record many positive signals thanks to the free trade agreements being implemented more and more deeply. Moreover, in key textile and garment markets such as the US, EU, Japan, etc., which are gradually lifting the blockade order, the market will recover in the near future," said Mr. Cam.

Besides, for the textile and garment industry, consumption often increases sharply at the end of the year and exports peak in the second half of the year. Therefore, it is certain that export turnover will reach a breakthrough in the coming time.

However, experts also pointed out many difficulties that the textile industry has to face ahead. First of all, the context of the Covid-19 epidemic tends to re-emerge in Europe as well as Asian countries. This will greatly affect the import market as well as the export turnover of the textile and garment industry.

Meanwhile, currently in the country, the epidemic situation is becoming more and more complicated, many factories have to close, or maintain production under the "3 on-site" option, which also makes it difficult for export goods. Moreover, due to concerns about the epidemic, some brands have moved orders out of Vietnam.

In addition, there are also many concerns that from now until the end of 2021, there are two peak seasons for exports from Asia to North America and Europe in July (back to school season) and October (Christmas season). In the last months of 2021, transportation costs are expected to peak and negatively affect export activities of enterprises. However, currently, textile enterprises mainly buy CIP (freight and insurance) and sell FOB (delivery conditions exempt from seller's liability when the goods are on board), many partners take care of ship fees, so businesses not much affected.

(Propaganda article on the implementation of Resolution 84/NQ-CP of the Government)