The garment and textile sector will bring in a trade surplus of $12 billion this year. —VNA/VNS Photo Vu Sinh

HA NOI (Biz Hub) — Viet Nam's garment and textile export turnover is likely to reach US$24.5 billion this year, a 19 per cent rise against 2013 and the largest increase in the past three years.

With this result, the garment and textile sector will bring in a trade surplus of $12 billion this year, according to the Viet Nam Textile and Apparel Association (VITAS).

The Ministry of Industry and Trade (MoIT) reported that the sector earned $19.18 billion from exports in the 11-month period, increasing 18 per cent against the corresponding period last year. Exports of fibre rose 19 per cent to $2.3 billion.

The association also mentioned a shift of orders from other countries to Viet Nam thanks to bilateral and multilateral free trade agreements the country has signed and will sign with its partners.

In recent years, the sector has focused on diversifying material supply sources to ease the dependence on foreign source and increase competitiveness. To date, it has raised the localisation rate to more than 50 per cent.

A report from the MoIT showed that in the January-November period, cotton production from natural fibre reached around 300 million sq.m, posting a 15.8 per cent year-on-year increase.

Cotton production from synthetic fibre was estimated at 666 million sq.m, rising 5.6 per cent over the same period last year.

Last month alone, the cotton production from natural fibre was 28.7 million sq.m, representing a 15 per cent month-on-month rise, while that from synthetic fibre rose 12 per cent in comparison with the previous month to 60 million sq.m.

Le Tien Truong, General Director of the Viet Nam National Textile and Garment Group (Vinatex), said the group's subsidiaries have increased investment in material production, adding that their textile fabric output can meet 60 per cent of domestic demand.

He emphasised the need to build a trademark for Viet Nam's garment and textile products. The sector also needs to improve its competitiveness in the global garment supply chain, he added.

Besides, domestic garment and textile businesses have also searched for other material suppliers from ASEAN countries, particularly India, to avoid over-dependence on a single market, said the MoIT.

It said the search for new material suppliers will also help businesses take advantage of the Trans-Pacific Partnership agreement. — VNS