General Director of the Vietnam Textile and Garment Group (Vinatex) Le Tien Truong says the industry’s good results last quarter was due to rapid growth from new markets. Exports to Eurasian Economic Union (EAEU) grew 115 per cent and the Asian Economic Community (AEC) saw growth of 17 per cent.

Statistics showed the industry earned $6.75 billion from exports in the first quarter of this year, up 12.4 per cent from the same quarter last year. Although there were many challenges in key export markets, including low growth rates of exports to the European Union and the United States of 6.3-6.4 per cent, traditional markets such as South Korea, Brazil and India maintained high growth 14-34 per cent.

There was good growth in exports of new products like swimsuits and raincoats at 29 per cent and 41 per cent respectively. Vinatex, had foreseen difficulties in European markets and the failed Trans-Pacific Partnership agreement before devising their own ways to promote business overseas with new products.

Stable forex rate is a problem for businesses, particularly Vietnam’s rivals, including China, India, Bangladesh, Pakistan, Indonesia and Malaysia, devaluing their currencies to keep their market shares. Truong feels textile and garment businesses always expect that in macro policies, there would be calculations to balance the Vietnamese dong’s forex rate and currencies of other countries to raise competition. The industry could reach its targeted growth rate of 10 per cent this year.