Business

The textile and garment sector has stepped up efforts to boost business efficiency.

The sector would reap $13.2 billion in full-year export value, a jump of $200-$300 million against the projection if the market did not experience big changes in the second half of the year, said Vinatex general director Tran Quang Nghi.

To make the most of current market advantages the sector’s leaders urged companies to scale-up efforts to expand export markets, find new partners, pare down operation expenses and gradually curtail import through using locally sourced materials and spare parts.

Vinatex statistics show the group succeeded in saving 10 per cent of operation expenses, tantamount to more than VND500 billion ($24 million), in the first half of 2011 against the same period in 2010 through adopting a comprehensive measure package to save materials, energy and administrative expenses.

Besides, the sector decided on delaying capital intensive textile and dyeing projects with a low return-on-equity (ROE) rates and accelerating the pace of garment and spinning projects with the ROE rates of over 20 per cent and construction time of less than six months.

Reality showed that the textile and garment sector raked in $6.16 billion in total export value in the first half of 2011, up 30 per cent against the same period in 2010 on the back of uncertain economic climate in both domestic and world market, said Vinatex deputy general director Le Tien Truong.

Exports to the US market hiked 7.5 per cent, to the EU up 25 per cent and to Japan up nearly 23 per cent on-year.

Largest hindrances the sector’s member businesses faced in the past months were spiraling material costs, high lending rates and restricted access to loans.

Besides, its imports of materials came to around $4 billion in the first half, of which imported cotton hiked 103 per cent in value despite falling nearly 10 per cent in volume due to rising export prices and that of imported fabric up 38 per cent against the same period in 2010.