The textile-garment industry’s dependence on imported raw materials, which account for 60-70 per cent of total inputs, continues to limit its ability to fully benefit from various free trade agreements (FTAs), Truong Van Cam, vice chairman and general secretary of the Vietnam Textile and Apparel Association (VITAS), was cited as saying by a domestic media outlet.
Vietnam needs more efforts to maintain export growth momentum in H2 2026 as despite encouraging performance, exports heavily depend on limited markets and product groups, while many export items reply on imported raw materials, experts say.
Subdued consumption in major markets, falling commodity prices, growing trade barriers and high global interest rates would continue to weigh on export performance.
The sector has spent more than $13 billion on imported materials, including $5.53 billion worth of fabric from China, since the year began.
The National Statistics Office cautioned that subdued consumption in major markets, falling commodity prices, growing trade barriers and persistently high international interest rates would continue to weigh on export performance in the coming months.
The Ministry of Industry and Trade, therefore, will intensify support for businesses to make full use of existing FTAs; strengthen trade promotion activities, with greater emphasis on resolving market access barriers in key export destinations; tighten inspections to combat trade fraud and origin fraud, especially for billion-dollar export products; and enhance verification of certificates of origin to reduce the risk of trade remedy investigations.
The ministry also plans to closely monitor global commodity markets to manage imports of energy and fuel more effectively, avoiding large purchases when international prices peak in order to help contain import costs. Improving logistics efficiency is another priority.
Fibre2Fashion News Desk (DS)
