Vietnam Textile and Garment Industry sets a target of 39 billion USD back in 2021

Government conferences with localities took place in 1.5 days (December 28-29, 2020) under the chairmanship of Prime Minister Nguyen Xuan Phuc. From the main bridge point at the headquarters of the Government, the conference is connected to 63 provinces and cities directly under the Central Government.

General Secretary, State President Nguyen Phu Trong, Prime Minister Nguyen Xuan Phuc, National Assembly Chairwoman Nguyen Thi Kim Ngan, Standing Secretary of the Secretariat Tran Quoc Vuong and delegates attending the Government Conference with localities . - Photo: VGP

On the first day of the Conference, the Conference listened to the Brief Report on the implementation of the socio-economic development plan for the year 2020 and the 5 years 2016-2020; Expected directions and tasks next time. Entering the second working day, the Conference listened to the speeches of the Ministers and Government members.

Government online meeting nationwide with localities in the country to discuss solutions for socio-economic development in 2021 - Photo:

Opening the meeting on Monday (December 29 morning), Chairman of the Board of Directors of Vietnam National Textile and Garment Group (Vinatex) - Mr. Le Tien Truong spoke before the Conference. On behalf of the textile and garment business community, Mr. Truong expressed his gratitude to the precise, decisive and timely direction of the Government, the Prime Minister, ministries and localities in the prevention of Covid- 19 years 2020, making Vietnam Textile and Garment industry the only country in the Top 5 world textile exporting countries not being isolated or stopped production. That is the most important reason for the lowest decline in Vietnam's textile and garment exports, in terms of clothing items in the Top 5.

Mr. Le Tien Truong - Chairman of Vinatex's Board of Directors speaking at the Conference - Photo: Quang Hieu

2020 is the first year after 25 years, Vietnam's textile and garment export growth is negative 10.5%, only reaching 35 billion USD compared to 39 billion USD in 2019, but in the context of global demand decreasing by over 22 %, from 740 billion USD down to 600 billion USD, competing countries have a decrease of 15-20%, even nearly 30% if long-term quarantine. According to a McKinsey report on December 4, global fashion profits fell 93%, more than 10 supply chain brands and major fashion brands went bankrupt. About 200,000 workers in the fashion supply chains in the US have lost their jobs. Meanwhile, thanks to no production interruption, the market share of Vietnamese textiles and garments continued to grow, reaching 20% ​​for the first time in the US market, in which many months stood at No. 1 in market share. . Trade agreements,

Internally, the Textile and Garment industry has been proactive since the beginning of the year when the material supply chain was interrupted by many integrated solutions, shifting the supply. At the same time, from the beginning of February, producing PPE products for domestic epidemic prevention, ensuring demand, stabilizing prices, and from March to June, this is the main export product, ensuring jobs and income for employees. The industry has identified since the beginning of February, the most important asset to be determined to protect is the skilled workforce and position in the global supply chain, with the goal of having the ability to recover as soon as the market. signs of warming. With that point of view, the Textile and Footwear Industry has basically secured jobs for a very large workforce, up to more than 4 million people, although the jobs are less

As for the Vietnam National Textile and Garment Group, in 2020, although the export turnover will decrease by 10%, the profit will decrease by 15%, but the salary only decreases by 4.5%, reaching an average of 8.05 million VND / person / month; keep enough jobs for 150,000 workers; reducing working hours by over 12%, real hourly wage increasing by over 8%; Especially not receiving labor allowances to maintain the position of businesses in the supply chain. In particular, in the first 6 months of the year, the Prime Minister had two meetings with the Textile and Garment industry, Deputy Prime Minister Vu Duc Dam directly directed the PPE manufacturing industry, Ministers - Head of Government Office, The Ministry of Finance, the Governor of the Bank, and the Ministry of Labor all had a meeting with the Group during the peak time of Covid-19 translation to help businesses confidently, stabilize their production and accept to produce all possible products. to maintain employment and income for employees.

According to forecasts of the world, the textile market will recover the demand to 2019 as early as Quarter 2/2022, and at the latest quarter 4/2023. Therefore, the year 2021 is still a year when the market continues to be difficult, uncertain, depending on the epidemic situation in the world. Many new features of the supply chain will be established:

  • Price downward trend dominated the whole market;
  • Simple goods, replacing fashion products, lead to a lot of excess production capacity but lack of new capacity;
  • Online business, reducing intermediaries, requires management and digital communication with all components of the supply chain.

Clearly defining the challenges of 2021, the Vietnam Textile and Garment Industry and Vietnam National Textile and Garment Group have a high plan to achieve the export turnover of 2021 equivalent to 2019, faster than the general market from 9 months to 2 years. With the high target for 2021 of exporting $ 39 billion, the average target is $ 38 billion.

To achieve this goal, on behalf of the business community, Mr. Le Tien Truong proposed:

  1. The Government continues to maintain macroeconomic stability, exchange rates and interest rates. Interested in continuing to reduce interest rates for long-term loans as the year 2021 begins an investment cycle to meet the new requirements after Covid-19, as well as to invest in the production of raw materials to meet the rules of origin. FTA. The commercial banking system is flexible in credit rating, after a year of difficult and low efficiency, investment projects of textiles, especially investment in yarn and fabric production are no longer in high priority order. Access to capital is difficult and interest rates are high, so it is very necessary to reassess the new period corresponding to the speed of market recovery.
  2. The government has a specific policy for the development of the textile and garment supporting industry, including space for growth and development stimulating conditions. Localities support Textile development on the principle of sustainable development, clean production that Textile enterprises must comply with the global convention of the supply chain.
  3. The Government continues to direct the reduction of non-production costs, especially logistics costs through the planning of the national logistics network, among other tariff costs.
  4. The Ministry of Industry and Trade continues to support businesses in effectively exploiting FTAs ​​through the earliest guidance on processes to meet the Rules of Origin, with a portal to look up the benefits of FTAs ​​because Vietnam currently has 17 FTA, where there are countries with 4 FTAs ​​with Vietnam at the same time, such as Japan (RCEP, CPTPP, Asean-JP, VN-JP), leading to non-optimal choice for businesses.

“With deep belief in the leadership of the Government, ministries, sectors and localities always create the most favorable conditions for businesses, the Textile and Garment Industry is determined to make a strong comeback in 2021 with export turnover from 38 -39 billion USD. " - Mr. Le Tien Truong stated.