Vietnam’s apparel exports have shot up six per cent in the first four months of this year against the same period a year earlier. In 2015 Vietnam’s garment exports reached $27.5 billion. Based on the sector’s current growth, export turnover is expected to reach between $40 billion and $50 billion by 2020.

Now, the textile sector wants to attract investments including high-quality fiber production and dyeing projects in industrial parks or key economic zones. At present, the sector relies on importing high-quality fiber for manufacturing export products. The import cost for these was $15 billion in 2015.

Despite rising shipments, the industry is coping with a slew of challenges. Many small and medium enterprises have been mired in difficulties as they have found it hard to compete. While apparel exports from Myanmar and Laos enjoy special tariffs for exports to Europe and the US, Vietnamese firms have to wait until 2018 to make use of preferential tariffs to export products to these two major markets. That’s when the new free trade agreements with them will take effect.

In addition, apparel enterprises have become exhausted by so many inspections by customs, taxation, labor, environment and food safety authorities. There are three or four inspection teams a quarter. What also irks these enterprises is the rule on formaldehyde content in imported fabrics. They say this rule costs them time and money to observe and want it revised. There is a need for industrial parks to facilitate management and wastewater treatment.

Vietnam is targeting apparel exports worth $30 billion this year. The target is achievable but enterprises have to change their business methods to make the most of opportunities from the country’s international integration.