Vietnam targets 15 bln USD from garment exports next year

HANOI, Nov. 30 (Xinhua) -- Vietnam's garment industry has set an export target of 15 billion U.S. dollars in 2012 despite a slew of possible hurdles in its path, reported Vietnam News Agency Wednesday citing the Vietnam Textile and Apparel Association ( Vitas) as saying.

According to Vitas, this year's target of 13 billion U.S. dollars is most likely to achieve after it already exported 10 billion U.S. dollars worth goods.

Vitas listed challenges like high inflation and unstable interest and exchange rates next year.

It said the sector would also be affected by the ongoing public debt crisis in the EU, one of the country's key markets, as it would be by the economic problems at home.

The growth in exports to key markets like the EU, the United States and Japan was expected to fall by 10-15 percent next year, Vitas said.

Inflation in Vietnam is likely to be around 10 percent next year, higher than in countries that compete with Vietnam for the global textile market, which means costs like electricity, water, fuel and salaries would continue to rise, impacting the sector's competitiveness, said the report.

A large number of textile firms lack funds for production and expansion because of the continuing high loan interest rates despite the government's efforts to reduce them. Only a small number of firms have been able to get credit on easy terms.

The industry has mapped out measures to be taken to achieve next year's target, including gradually reducing its dependence on sub-contracting for other producers. Besides, exploration of new markets like Russia, Canada and South Korea will be accelerated.

As of October, Vietnamese garment exports to the EU increased 41 percent, the United States, up 14 percent, and Japan, up 52 percent, according to Vitas.