“Earthquake and tsunami in Japan will not adversely impact Vietnam's garment exports and Vietnamese garment companies can continue with market segments where they have advantage to boost exports to this market,” said Mr Le Tien Truong, Deputy General Director of Vietnam National Textile Garment Group (Vinatex) in an exchange talk with reporter Huong Giang.
What is your opinion about textile and garment exports to the Japanese market in the past years?
Japan is a major importer of Vietnamese textiles and apparels, only after the United States and the European Union (EU). In recent years, Vietnam’s textile shipments to Japan increase 12 percent a year on average. According to the Vietnam - Japan Bilateral Partnership Agreement which took effect in 2010, Japan’s import tariffs on Vietnam's garments and textiles are zero; thus, the exports increased 20 percent compared with the value before the enforcement of the agreement. 2010, the value of garments and textiles exported to Japan accounted for 10 percent of Vietnam’s total export earnings of this commodity. Recently, Vietnam has shipped eight tonnes of textile products and disposable home appliances ahead of schedule to reach areas hit by earthquake and tsunami on March 11.
How do the earthquake and tsunami impact textile export of Vietnam to the Japanese market?
It is unlikely to witness a big change in garment exports to Japan. This year, Vietnam expected to earn US$1.2 billion from garment and textile exports to this market, the same as in 2010.
Japanese importers will place orders with an increase in quantity but with a lower quality. Japan is a large economy and it is suffering hardships but it is not serious enough to cut basic consumption needs.
Could you brief on advantageous apparel products of Vietnam in the Japanese market?
Suit and knitwear are two largest fashion products exported to Japan. Many companies have exported their products to Japan for long. For example, Dong Xuan Knitwear Company which specialises in manufacturing underwear has exported its products to Japan for 30 years. Nha Be Garment Corporation has exported its products to Japan’s largest suit importers because Japanese people wear suits at office throughout the year. After the disaster, Japan increases orders for productive instruments.
Vietnam’s textile export turnover accounts for a very small percentage of Japan’s import spending on this commodity while China makes up for 90 percent there. What is your opinion about this huge difference?
Vietnamese companies have to import most of input materials. China spends less time to export to Japan. While Vietnam needs from seven to 10 days to ship the goods to Japan, China only needs 3 - 5 days.
Japanese importers always import a part from China, a part from Vietnam, and a part from other countries; thus exporters need to select their most advantageous segments. If we could not choose appropriate segments that suited our strengths, we would have never seen a growth of 15-20 percent in the event of global import downsizing.
Would you mind sharing some solutions that will help Vietnam further penetrates the Japanese market in the coming time?
Vietnamese companies should boost production of fabrics, yarns, and other accessories to be more active with inputs and increase added value. They also need to survey the market demand and consumer tastes for fashion. Japan is a large market but its importers usually place orders in relatively small quantity (in relation to its aggregate demand); thus Vietnamese companies must be more responsive.
They also should renovate production lines to improve the grade and quality o products, boost designing capability, create new models, develop brands, improve management, and shorten production and delivery durations. These measures will help them reduce costs and thus gain more advantage in competition with rivals from other countries which also export to Japan.
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