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Related Keywords: at risk of missing their export target, attributed to FDI, burdening enterprises, encounter overlapping procedures, export value increased, increases in minimum wage, lack of export orders, local frims had difficulties getting new export contracts, propose wage freeze, reduced competitive ability, Vietnam garment and textile industry, Vitas

Vietnam’s garment and textile export value in the first half of this year reached US$12.6 billion, an increase of 4.72 percent over the same period last year, accounting for 41 percent of the sector’s annual target for 2016. But the growth in the industry’s export value was largely attributed to foreign direct investment (FDI) firms, while local firms had difficulties getting new export contracts, especially orders of shirts, trousers and jackets, said the Việtnam Textile and Apparel Association (VITAS).

Related Keywords: challenges in finding new export contracts, especially for shirts, exports rise lower than targeted growth, falling export prices, orders moving to Laos and Myanmar, pants and jackets, ten percent this year, US largest export market, Vietnam garment and textile industry, Vietnam Textile and Apparel Association, Vietnamese trade ministry

Vietname Garment and textile industry exports in the first five months of this year rose 6.1 percent to US$8.6 billion, but the rise was lower than the targeted growth of 10 percent this year. In May, the industry earned $1.75 billion, up only 3.8 percent, according to Vietnamese trade ministry.

Many Industry insiders expressed concern over the difficult for garment and textile industry to meet the target of US$31 billion this year due to falling export prices and challenges in finding new export contracts, especially for shirts, pants and jackets.

Related Keywords: access benefits of TPP, garment and textile material zone, material production, stricter environmental regulation, TPP agreement, Vietnam garment and textile industry, weaving-dyeing-garment production chain

The material source for Vietnam garment and textile industry is mainly imported. According to Vietnam Textile and Apparel Association (Vitas) around 60-70 percent of material is imported and 80 percent of businesses in this industry are doing outwork, resulting in low added value.

TPP will benefit those using materials made in their countries or in TPP member nations. Local businesses are short of capital to invest in this field, making them unlikely to enjoy tax incentives from Trans-Pacific Partnership (TPP) agreement which is expected to be signed this year.