According to the Africa, Southwest Asia Market Department (Ministry of Industry and Trade), in many African countries, the textile industry has not developed despite abundant sources of raw cotton. With the rising population and income of the African people, this continent will become a full potential market for textile items. Vietnam has exported textile and fabrics products to 38 countries in Africa, earning US$164.47 million in 2012.
Vietnam’s major importers include Egypt (US$38 million), Lesotho (US$15.6 million), Sudan (US$15.5 million), South Africa (US$14.4 million), Angola (US$14.4 million) and Ethiopia (US$13.3 million). Vietnam also buys raw cotton and textiles from Africa. In 2012, Vietnam spent US$155 million importing these commodities from 26 African countries.
Mr Le Thai Hoa, Deputy Director of the Africa, Southwest Asia Market Department stressed that with the GDP growth on average of 5 percent/year, Africa and the Middle East are indeed a potential market for Vietnamese enterprises.
One of the major advantages of Vietnam textile exports to the African market is that some African countries such as South Africa have adopted the quota mechanism for Chinese clothing because of dumping and its material not having guaranteed quality.
Vietnam can absolutely increase textile exports to Africa, because it has competitive advantages over many other Asian countries such as lower labour costs, high productivity and quality.
Mr Le Thai Hoa also noted that the textiles exporters have to actively popularise their potential and brand, organise trips to study, promote trade to Africa and facilitate direct business. They should also attend trade fairs, international exhibitions, conferences and business forums to learn market information and initiate business contact. They also need to explore and understand the customs, business culture, import and export regulations, as well as the payment method.
Vietnamese businesses may consider the possibility of investing in Africa to take advantage of local cheap labour and materials available for the production of textiles to serve local needs and exports.
In particular, most African countries enjoy preferential tariffs when exporting to the EU and US. African Growth and Opportunity Act (AGOA) of the US allows almost all goods of 48 countries of the sub-Saharan region including textiles imported into the US to enjoy duty-free status and no restrictions on quantity.
Huong Ly
Vietnamese
