Vietnam's textile exports may fetch $13 billion this year

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Though Vietnamese textile and garment firms have to cope with rising input costs and high interest rates, the industry could realize its export target of US$13 billion this year, says the leading textile group.


In the first six months of this year, textile and clothing exports topped US$6.16 billion, a 30-percent year-on-year increase. This represented the highest first half growth rate in the last four years, said Le Tien Truong, standing deputy general director of the Vietnam National Garment and Textile Group (Vinatex).


Textile and garment exports of Vinatex, the country's leading textile group, hit US$1.22 billion in the first six months, up 32 percent compared to the same period last year.


Truong, in an interview with the Vietnam News Agency published on July 7, called these results "encouraging".


He said that the sector's impressive export performance was the result of local firms successfully cutting energy and management costs.


Truong also said textile and garment companies had reduced their reliance on bank loans given high lending interest rates. Instead, they have used their own capital to run their operations.


The Vinatex executive also said that enterprises had minimized inventory in a bid to cut costs.


While saying that the country's target of exporting $13 billion worth of garments and textiles in 2011 is within reach, Truong made a few suggestions on ways to realize the goal.


One of them is that textile firms should use more synthetic materials than natural materials to reduce production costs.


In addition, Truong said companies should give priority to short-term contracts and outsourcing work so that they can recoup their capital soon.


He also recommended that garment enterprises delay their investment plans to ease their capital shortage.


The country is now home to 3,710 companies operating in the clothing and textile sector. The majority of them are located in Ho Chi Minh City and Hanoi.


Vietnam was among the world's top five textile exporters in 2010, with total turnover hitting US$11.2 billion.

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