The Fashion Sector Could Benefit From Collaboration With African Markets.
VIETNAM, 18 APRIL – In the northern province of Hng Yên, a production line at Tiên Hng Garment and Textile JSC. The trading relationship between Vietnam and Africa, particularly in the fashion industry, has not been commensurate with its potential. Phm Kiên, VNA/VNS photographer
HÀ NỘI Despite recent significant expansion, the economic relationship between Vietnam and Africa has not kept pace with its prospects, particularly in the fashion industry, according to Lê Hoàng Tài, deputy director of the Vietnam Trade Promotion Agency (Vietrade).
He saw that few African firms and consumers were aware of Vietnamese fashion.
Last week, the agency organized the 2022 Viet Nam – Africa business matching webinar on fashion products in collaboration with Vietnamese trade offices in African countries.
This was an activity to enable Vietnamese firms in the manufacture and trade of fashion products to promote advertising, seek partners, connect business possibilities, and export to African markets as part of the National Program on Trade Promotion this year.
A total of 50 Vietnamese and African fashion manufacturers and traders attended the event.
The volume of trade between Vietnam and Africa increased dramatically last year. As a result, Vietnam’s exports to Africa were $3.36 billion in 2018, rising 18.1% from 2020.
Exports from Africa to Vietnam totaled $4.71 billion in 2018, up 28.6% from 2020.
“Demand for goods, notably fashion consumer goods, is expanding in Africa,” Tài added, “but few firms and customers are aware of Vietnamese variety fashion products.”
Meanwhile, Vietnam’s textile, garment, and footwear manufacturing industries were well-developed, able to meet many large orders with strong demand from numerous countries throughout the world, but supply for the African market was limited, according to Tài.
Nguyn Th Tuyt Mai, deputy general secretary of the Vietnam Textile and Apparel Association (Vitas), said that Africa’s economy had grown rapidly in recent years, leading to an increase in demand. With 55 countries and a population of more than 1.2 billion people, Africa’s economy had grown rapidly in recent years, leading to an increase in demand.
At the moment, 43 of Africa’s 55 countries have joined the WTO. Non-tariff barriers had been steadily dismantled, and import duties had been cut in these countries.
Mai emphasized the prospects for African entrepreneurs to invest in Vietnam, saying that the country had adopted the COVID-19 policy and had signed numerous FTAs.
We aim to encourage African businesses to invest in Vietnam because of its strengths. We wish to encourage investment in one of the most important areas: fabric manufacture. Currently, Vietnam imports a lot of fabric from China, but it is increasingly moving toward localization in order to take advantage of FTAs’ laws of origin. “We urge green and clean investment in the fabric manufacturing sector, based on renewable energy and the circular economy,” Mai stated.
According to Mai, the African market has a lot of potential, and there is still enough of opportunity for Vietnamese businesses.
Because of Vietnam’s advantages, we want to encourage African businesses to invest there. We want to promote investment in one of the most vital sectors: fabric production. Vietnam now imports a lot of fabric from China, but it is progressively pushing toward localization in order to take advantage of the origin laws established by FTAs. “We advocate for green and clean investment in the fabric manufacturing sector, which is based on renewable energy and the circular economy,” Mai said.
According to Mai, the African market has a lot of potential, and Vietnamese enterprises still have a lot of room to grow.
Content courtesy EIN New wires & NFH