Most members of the Vietnam Textile and Apparel Association have secured export contracts for the first three quarters at up to 15 percent higher prices than last year, its vice chairman said.
Some have also clinched deals that would keep them busy for the rest of the year, Pham Xuan Hong said.
Apparel-textile exports this year are already worth US$1.51 billion, up 16.8 percent over the same period last year, and have toppled crude oil as the biggest foreign currency earner for Vietnam.
The Ministry of Industry and Trade has set the sector an export target of $10-10.5 billion this year, up from the $9.1 billion it achieved last year.
Shipments to the US, which buys half of Vietnam’s apparel exports, increased 15 percent in volume terms though the value was down 5 percent. But the fall was the lowest of any country exporting to the US.
Vietnam’s sales to other key foreign markets like the EU and Japan, however, grew.
The global economy is expected to grow at 2.2 percent this year and the US’ at 2 percent, promising higher demand for goods from developing nations, according to the International Monetary Fund.
But on the flip side are three factors that can affect Vietnam’s exports.
Firstly, since the sector imports most of its feedstock, the volatility in the dong could affect its costs.
Secondly, the sector’s low wages could widen a gap that has opened up between demand and supply of skilled workers.
Thirdly, a new regulation adopted by the US this year for garment imports, which requires certification of quality by authorized third parties, could increase costs for Vietnamese exporters.
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