Vietnam aims to export US$39 billion worth of garment products in 2021, according to national textile and garment group Vinatex.

The company said 2021 may still be a challenging year as the garment sector continues to face difficulties and its performance will depend greatly on the global Covid-19 situation.

Last year, Vietnam’s garment export revenue was estimated at US$35 billion due to the impact of the pandemic, as well as US-China trade tensions, protectionism and Brexit.

It is predicted the global garment market will not recover to its 2019 level until at least the second quarter of 2022 and possibly not until the fourth quarter of 2023.

Vinatex Chairman Le Tien Truong said in addition to the efforts of garment makers, the government should consider lowering borrowing costs so that they can meet new requirements as well as invest in producing materials to meet rules of origin contained in new free trade agreements.

He also suggested the government introduce specific policies to support the garment sector’s development and direct the relevant agencies to reduce logistics costs and other tax burdens.

At the same time, the Ministry of Industry and Trade should continue helping enterprises take full advantage of free trade agreements by issuing guidelines on rules of origin and opening a portal for enterprises to examine the benefits of such pacts.

Source: Customs News