Vietnam's garment, textile exports to U.S likely to rise after WTO accession

Vietnam's garment and textile exports to the United States are likely to increase 8-10 percent annually at maximum after its entry in the World Trade Organization (WTO), local newspaper Youth reported Monday.

"Despite enjoying the quota-free regime after joining the WTO, Vietnam will face difficulties in expanding its market share in the United States, mainly due to heavy reliance on outsourcing production and material import," the paper quoted Le Quoc An, chairman of the management board of the Vietnam National Textile and Garment Group (Vinatex), as saying.

Now, the country has to import most of synthetic fiber, dyes and equipment for local garment production, 90 percent of cotton, 70 percent of cloth, and over 50 percent of thread, he said.

In addition, the market share of Vietnam's garment exports to the United States may drop after 2008 because of fiercer competition from China.

In 2005, China's garment exports gained a market share of 26 percent in the United States; India, five percent; Pakistan, 4.5 percent; and Vietnam, 1.7 percent, An said.

Vietnam reaped textile and garment exports turnovers of some 2. 1 billion U.S. dollars in the first five months of this year, a year-on-year rise of 31.1 percent, according to the country's General Statistics Office.

Vietnam is estimated to reap 5.5 billion U.S. dollars from exporting garments and textiles, mainly to the European Union and the United States, in 2006, up 14.6 percent against 2005.

Source: Xinhua