Vietnam Textile & Apparel Association (VITAS) expects the apparel sector to grow 11.2 per cent this year with export revenue touching $39 billion. The sector has seen positive signals with the reopening of major markets such as the US and the European Union. In particular, Vietnam has switched from a zero Covid approach to safe and flexible adaption to and effective control of the pandemic in combination with economic development.
Domestic and foreign enterprises will be connected to form a supply chain, export markets will be expanded. Firms will be connected with international apparel associations and organisations and training courses on design, sale and trademark building will be imparted.
Problems related to policies and mechanisms, administrative procedures, specialised inspection, taxation, customs, salary and insurance will be addressed. Free trade deals will be negotiated to create favorable conditions for the apparel business community.
VITAS foresees three scenarios to for growth based on the pandemic situation. In the first scenario, export earnings will hit $42.5 to $43.5 billion if the pandemic is under control in the first quarter next year. The second scenario sets a revenue of $40 billion if the pandemic is curbed in mid-2022 and $38 billion if the pandemic lasts till late 2022. Weak support industries and the heavy reliance on material imports are the biggest obstacles for Vietnam to develop the textile and garment industry.