Last year, the country earned $24.5 billion from exports of garments and textiles to foreign markets, posting a 19 per cent year-on-year rise. — VNA/VNS Photo Tran Viet

HA NOI (Biz Hub) — Viet Nam spent US$15.8 billion last year to import materials for the garments and textiles sector, posting a 16 per cent year-on-year increase.

Data from the Ministry of Industry and Trade showed that the imported materials include cotton, fibre and fabrics. Of these, cotton imports were pegged at 743,000 tonnes, increasing 28 per cent over 2013, with a total value of $1.4 billion. Imported cotton prices last year were $1.95 per kilogram, 3 per cent lower in comparison with the previous year.

The imports of fibre amounted to $1.6 billion for 745,000 tonnes, representing 7 per cent and 3 per cent year-on-year increases in terms of quantity and value for 2014 and 2013, respectively.

The country also spent $9.5 billion on fabrics, while the imports of other materials touched $4.7 billion, increasing 25 per cent over 2013.

However, the Viet Nam Textile and Apparel Association (VITAS) said the import growth rate was lower than export growth despite the high import value.

Last year, the country earned $24.5 billion from exports of garments and textiles to foreign markets, posting a 19 per cent year-on-year rise.

Of these, garment and textile exports to the United States touched $9.8 billion; to Japan, $2.7 billion; and to South Korea, $2 billion.

VITAS said Viet Nam's garment and textile sector will see favourable conditions due to the effects of the existing Free Trade Agreement (FTA).

The industry this year has targeted an export turnover of $28 billion to $28.5 billion, increasing $4 billion to $4.5 billion over the last year. The United States is a promising market with a turnover of more than $10 billion.

The Viet Nam National Textile and Garment Group (Vinatex) claimed it expects to produce 55 per cent of the material for garments and textile products by 2017.

Vinatex has invested VND9 trillion (US$ 418.6 million) in fabric production in several industrial parks with high productivity.

This is considered one of the strengths of the sector that will help it tap into opportunities from upcoming FTAs as the pacts pay much attention to the origin of fibre and fabrics.

In addition, the increasing localisation rate will also follow the strategy of improving the value and position of the domestic sector in the global supply chain. — VNS