Potential for exporting textiles and fabrics to Africa

According to an analysis report of the Market Department for Africa, West Asia and South Asia, in many African countries, the textile and garment industry is still underdeveloped despite having an abundant source of raw cotton. With Africa’s population and income increasing, the continent will become a promising consumer market for textiles.

In 2012, Vietnam exported textile and garment products and fabrics to 38 African countries, reaching US$164.47 million, up 17% compared to 2011. This is one of the top 5 items with the largest export turnover of Vietnam. Vietnam in Africa (along with rice, seafood, coffee and mobile phones).

The countries importing this group of goods from Vietnam the most from Vietnam include Egypt ($38 million), Lesotho ($15.6 million), Sudan ($15.5 million), South Africa ($14.4 million), Angola. ($14.4 million), Ethiopia ($13.3 million), Morocco ($5.7 million), Kenya ($4.2 million, Guinea ($3.9 million), Mozambique ($3.7 million) ), Libya ($3.57 million), Ghana ($3.55 million), Nigeria ($3.4 million), Uganda ($3 million), Zambia ($2.9 million), Zimbabwe (1.8 million dollars), million USD)… In the first 3 months of 2013, the export turnover of textiles and fabrics to Africa reached 44.3 million USD, up 10% over the same period in 2012.

In contrast, Vietnam also buys a lot of raw cotton from this region. In 2012, Vietnam imported cotton from 26 African countries with a total value of USD 155 million. The main cotton suppliers include Ivory Coast ($34.8 million), Tanzania ($28.5 million), Mali ($18 million), Burkina Faso ($15.6 million), Uganda ($13.7 million), USD million), Togo ($9.4 million), Nigeria ($6.5 million), Zimbabwe ($6.2 million), Benin ($5.2 million), Mozambique ($4.4 million), Zambia (4 million  USD), Cameroon (3.2 million USD).

Currently, among the countries supplying textiles to Africa, China and India hold the largest market share. However, some African countries such as South Africa have applied a quota mechanism on Chinese clothes for reasons of dumping and poor quality. This is an opportunity for Vietnamese goods to increase export turnover to the regional market.

In the 2011-2020 period, the annual production growth of Vietnam’s textile and garment industry is expected to reach 12-14%, and export growth will reach 15%/year. The goal of the textile and garment industry is to achieve an export turnover of 25 billion USD by 2020. Although Vietnam is one of the eight major textile and garment exporting countries in the world, the export value of this group of goods. this to Africa is still quite modest. According to the assessment, Vietnam can completely increase the export of textiles and garments to Africa, because this item has competitive advantages such as lower labor costs compared to many Asian countries, while skills, fine sewing workmanship and productivity, high quality. On the other hand, the West’s habit of using second-hand clothes in Africa has gradually changed, giving way to the purchase of new Asian clothes. Vietnam and most African countries are members of the WTO, so textile enterprises can freely export according to market demand.

Some things to keep in mind when exporting textiles to Africa

In order to boost exports to Africa, businesses need to actively propagate their potential and brand of textiles, and at the same time participate in policy research and trade promotion groups to Africa to meet. direct partner. Attending international fairs, exhibitions and seminars, business forums is also an opportunity for businesses to learn market information and contact prestigious customers. Actively seek information and business opportunities on the official websites of the Ministry of Industry and Trade  www.moit.gov.vn,  Trade Promotion Department www.vietrade.gov.vn, www.vinafrica.com of the Ministry of Industry and Trade. Vietnam Chamber of Commerce and Industry (VCCI), through the Department of Markets for Africa, West Asia, South Asia (Ministry of Industry and Trade) as well as Trade Offices, Vietnamese embassies in Africa such as Algeria, Egypt, Morocco, South Africa, Nigeria, Tanzania, Angola, Mozambique, Libya. Limit searching and dealing with unknown customers over the internet.

The demand for textile products and fabrics in the African market is quite large, but to do business here, businesses need to learn and understand the customs, business culture, import and export regulations as well as methods payment method.

In addition, businesses can consider the possibility of investing in some major markets in Africa to take advantage of cheap, available labor and raw materials to produce textiles and garments to serve the needs of the host country and export. Most African countries enjoy preferential tariffs when exporting to the EU and the US. The US African Growth and Opportunity Act (AGOA) allows nearly all goods from 48 sub-Saharan African countries, including textiles, to be imported into the US duty-free and unrestricted. quantity. Many Chinese enterprises have taken advantage of this while Vietnam has only invested in a few textile and garment factories in Angola.