Prospects for the world’s textile and garment industry are expected to be brighter in 2022 and Vietnam continues to maintain its position as a leading textile and garment exporter in US and EU markets.
Figures from the General Department of Customs showed that in the first quarter of 2022, the country’s export value of textiles and garments reached $8.68 bn, up 20.3 percent year-on-year, marking the highest increase in the past 10 years.
The US continues to be the largest textile and garment import market from Vietnam with a value of $4.3 bn, followed by the EU with $896 mn, and Korea with $754 mn. The positive signal of the market and the initial control of the COVID-19 pandemic will help Vietnam’s textile and garment industry fulfill its set export target of over $43 bn by 2022, according to Vietnam Textile and Apparel Association.
Besides, Vietnam will also have opportunities to catch up from the trend of shifting the world’s textile and garment supply out of China and Vietnam is one of the most potential and favorable destinations for manufacturers, import and export distributors, wholesalers and retailers worldwide.
To maintain the leading position and tap up opportunities post COVID-19, textile enterprises are accelerating to upgrade technology in production chains as well as increase labour productivity.
Take Hung Yen Garment Corporation (Hugaco) for instance, the company has focused on investing in equipment, modern technology and digital transformation, helping to increase productivity by about 20 percent. However, in order to create a synergy to maintain the leading position, it is not only the efforts of textile enterprises themselves, but also the contributions of industrial real estate developers to the textile industry.
Located in the Northern Nam Dinh province, the cradle of the Vietnam’s textile industry, Aurora is one of the very few IPs in Vietnam that meets the legal and utility infrastructure requirements qualified to accommodate fabric-dyeing establishments.
Developed by Cat Tuong Real Estate Group, one of the country’s leading real estate developers, Aurora’s infrastructure is synchronously designed with the country’s largest capacity of water supply and wastewater treatment system as well as the development of complex social infrastructure.
In 2020, even though the world was undergoing many challenges and difficulties caused by the COVID-19 pandemic and other complexities, Aurora IP still proves its attractiveness and unique value as a well-invested industrial park by closing two deals with a total investment surpassing $200 mn for land lease contracts with two FDI investors to develop high-tech textile and dyeing projects.
With the EVFTA coming into effect, duty was lifted from 65 percent of EU exports to Vietnam and 71 percent of Vietnamese exports to the EU. Therefore, it is expected that Vietnamese exports to the EU by 2025 will see a 42.7 percent increase by 2025, according to Vietnam’s Ministry of Planning and Investment.
“Aurora IP is pleased to be an important part of Vietnam’s leading position in the world’s textile market. Aurora IP understands that attracting foreign investment along with the participation of domestic textile and garment enterprises plays an important role in the sustainable development of the industrial park and the textile industry of the country,” said Tran Quoc Viet – Chairman& CEO of Cat Tuong Group.
