Fibre segment to beat $3-billion export target

Vietnamese fibre exports remain strong despite several key markets introducing protectionist measures (Picture: Dong Xuan Spinning Factory)

According to preliminary figures from the Vietnam Textile and Apparel Association (Vitas), Vietnam raked in $2.8 billion from fibre exports in the first ten months of this year, a 23 per cent jump on-year.

As the fibre sector is encountering anti-dumping tariffs in some major export markets like Turkey, India, and Brazil, this outcome proves encouraging.

According to Vitas chairman Vu Duc Giang, after Turkey imposed anti-dumping tariffs on several types of export fibre, such as draw textured yarn (DTY) and synthetic fibre in 2016, local export firms have been successful in finding alternative markets, which was the factor behind the more than 20 per cent jump in the fibre sector’s ten-month export value.

Soi The Ky JSC (STK), a major player in the local fibre industry, is one of the businesses whose export operations were affected by Turkey’s tax imposition, as the company had exported DTY there.

Via effective market expansion activities, in the first nine months of this year the company reaped VND1.45 trillion ($66 million) in total export value, a big jump compared to the VND972 billion ($44 million) it posted in 2016’s similar period.

The company’s net revenue rose by VND206 billion ($9.3 million) in 2017’s third quarter alone, up 67 per cent on-year.

According to an STK source, the company’s soaring revenue came on the back of effective sales promotion activities, particularly successes in finding new markets and customers.

With such upbeat results, STK is confident in reaching the full-year revenue and after-tax profit targets of VND1.9 trillion ($87 million) and VND87 billion ($3.9 million) by the end of the year.

The Vietnamese fibre sector has carved itself a place in the global fibre map and is well positioned to compete with big foreign rivals like India, China, Turkey, and Middle Eastern countries on equal footing.

The export prospects of local businesses in the rest of the year and next year are forecast to be bright.

According to Nguyen Minh Dao, head of the Fibre Business Department of Vinatex Nam Dinh Spinning Factory, a member of state textile and garment conglomerate Vinatex, with a monthly export value averaging at $1.1 million, they are confident in reaching 2017’s export target of $15 million.

For a plant which only commenced operations a little over a year ago, not having unsold stock and counting stable export value is deemed as fair business results.

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