Workers at Ha Bac Garment Company in the northern province of Bac Giang on a garment production line. — VNA/VNS Photo Tran Viet

HA NOI (Biz Hub) — Garment exports in January and February posted an 18 per cent year-on-year increase to US$3.4 billion, the Ministry of Industry and Trade (MoIT) said.

The surge has made the achievement of this year's export target of $28 to 28.4 billion a strong possibility.

The United States remained the largest export market for the Vietnamese garments and textiles industry, accounting for 8.4 per cent of the country's market share. It was followed by Japan and South Korea.

This year's exports to the US market are forecast to reach $11 billion, representing a 13 per cent jump from the previous year.

Meanwhile, the European Union (EU) continued to be a key market for Vietnamese garments and textiles, considering that the EU-Viet Nam Free Trade Agreement (EVFTA) would come into effect in the future.

Accordingly, a tax cut of 12 to zero per cent on Vietnamese garments would help Vietnamese companies step up their competitiveness.

As for the US market, it is expected that the Trans-Pacific Partnership (TPP) would be signed soon, resulting in lower taxes, as well as create favourable conditions for businesses to expand market share in the country.

This year is being considered as favourable for export activities in the sector as negotiations on several trade pacts could conclude.

Earlier this year, most enterprises under the Viet Nam National Textile and Garment Group (Vinatex) had received orders till the second quarter of the year. — VNS