The Vietnam Textile and Garment Group (Vinatex) has projected its export turnover to reach 2.89 billion USD in 2019, up 1 percent from last year and meeting 97.6 percent of the yearly target.

Illustrative image (Source: VNA)

The group said its member companies together shipped overseas about 2.06 billion USD worth of products in the first nine months of the year, fulfilling 70 percent of the yearly target and recording an annual increase of 2 percent.

By the end of September, most of them were yet to secure enough orders for the remaining of the year. Its key members like May 10, Duc Giang, Hoa Tho and Hanosimex reportedly obtained orders only until November, with the exception of Viet Tien.

Customers were said to avoid long-term orders and try to reduce prices, eating into the firms’ profit.

The yarn market, meanwhile, witnessed a sharp decline in both demand and prices between the end of 2018 and the first quarter of 2019. It is yet to bounce back.

Reports from Vinatex showed that its yarn producers, particularly those exporting products to China, were hit hardest by continuous price decreases.

The situation is getting worse as these companies are facing fierce competition for orders from FDI-funded firms and those from India, Thailand, Indonesia, and Pakistan, the group said.

According to the Vietnam Textile and Apparel Association, Vietnam exported some 29.24 billion USD worth of garment-textile products in the first nine months of 2019, up 9.2 percent year-on-year and meeting 74 percent of the yearly target. The sector recorded a trade surplus of over 15.2 billion USD, an annual rise of nearly 16.8 percent.