The textile and garment sector will continue facing challenges in 2017 due to fierce competition by other major exporters, including China, India, Bangladesh and Pakistan, while global demand is forecasted to slow down.
The consequences of Brexit and the US President-elect Donald Trump, who opposes the TPP trade pact, will be seen in 2017. The garment and textile sector anticipates an export growth rate at just 5-7 per cent.
Vu Duc Giang chairman of the Vietnam Textile and Apparel Association (Vitas) said it has made several proposals to the Ministry of Industry and Trade on support for the local industry, including strengthening management of both domestic and foreign investment projects in the industry, reviewing policies on minimum wage raises and working hours. The association also asked for adjustments to the sector’s development and assistance in human resources training assistance.
Vitas also suggested that the Ministry of Industry and Trade should review and revise legal documents causing difficulties for garment and textile businesses. They also asked to eliminate the limit on extra working hours monthly to help businesses spur their production.
Vietnamese textile and garment export revenues increased 4.8 per cent year-on-year in the first 10 months of the year to reach US$23.3 billion. A growth rate of 5 percent, however, could double the industries growth in just 5 years.