Vietnam’s textiles exports increased 9 per cent year-on-year to reach $9.51 billion in January-April, reports CCF Group. The export value of fiber and yarn increased by 43.4 per cent to reach $1.64 billion and that of textile, leather and footwear raw and auxiliary materials increased by 14.1 per cent to reach $642 million.
In April 2021, Vietnam's textile manufacturing index rose by 2.7 per cent month-on-month and 17.3 per cent year-on-year. The apparel manufacturing industry grew 3.9 per cent month-on-month and 29 per cent year-on-year. Overall, during January-April, the textile production index moved up by 7.8 per cent year-on-year, the apparel manufacturing industry climbed up by 9.5 per cent, and the leather and related products increased by 11 per cent.
According to the Vietnam industrial and trade daily, though the industry deserves FTA dividend, lack of self-sufficiency of raw and auxiliary materials, Vietnamese domestic textile and apparel mills prevents it from enjoying FTA tariff preferences. As per Vietnam Textile and Apparel Association, average utilization rate of certificate of origin (C/O) is about 58 per cent for textile and apparel products exported to countries that have signed FTA, of which, the c/o utilization rate is about 60 per cent-70 per cent under CPTPP, while that to the EU is only 20 per cent-30 per cent under EVFTA.
The main obstacle to low utilization rate of C/O and failure of enterprises to enjoy dividends is the origin of feedstock, says the Association. In addition, domestic enterprises also face strong competition from foreign enterprises. The Association urges Vietnamese government to strengthen the development of supporting industries to meet the demand of feedstock.