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Vietnams textile and garment export turnover exceeded usd 156 billion in 2011

In 2011, textile and garment export turnover exceeded USD 15.6 billion. This is the highest level in the last five years and also is Vietnam’s most exported items. Despite the fact that the key markets such as the U.S., EU and Japan were difficult to enter due to common economic crises, yet the textile and garment export turnover of Vietnam still reached a record above USD 15.6 billion, up to 38% over the previous year.

Business orientation of many companies in Vietnam includes trying to compete with other competitors by using their internal resources in the best possible way. The first element is reasonable pricing to compete with Chinese and Indonesian products; the second one is the improvement of product quality, and the third element is an increase in labor productivity. Besides the continued growth into traditional markets such as the U.S., EU and Japan, many companies are also trying to go into other niche markets to reduce competition if possible.

The main reason to the success this year is that the number of export orders into traditional markets were increased such as the U.S. increased by 14%, Europe increased by 41%, and Japan up 52% . In addition, the increase in export prices also contributed above 12% to the growth of such turnover.

Many economists assume that the most valuable lesson of 2011 is the accurate market assessment, from which it helped businesses adjust their business strategy accordingly. The second one is the maximum utilization of bilateral and multilateral agreements, which Vietnam has signed with other countries and organizations, especially with Korea which was used up well this year. In 2010, Vietnam enjoyed 4.6 billion USD trade surplus, but this year that was 6.5 billion USD, which is a huge improvement in the domestic production value and added value of textiles and garment, this is a major contribution to Vietnam’s economy indeed.

In many previous years, Vietnam's garment and textile products for export included high rate of imported materials, therefore, the import and export turnover of garment and textile sector seemed rather high, but actually contained low added value. However, this year the turnover was particularly high but the trade surplus also reached a record, meaning that the rate of import for raw materials decreased. In fact, the export figures in any industry whether high or low does not fully reflect the economic efficiency, the most important index is the increase in localization proportions.