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Domestic Textile Spotlights

02/06/2017 10:49 AM

Celebrating the traditional day of the Vietnam Textile and Garment Industry: With the tradition of pride and outstanding achievements of the textile and garment industry on 4 June 2010 Prime Minister Nguyen Tan Dung issued Decision No. 798 / QD -TTg dated 25 March as the traditional day of the Vietnam Textile and Garment Industry. Taking on March 25th as the traditional day of the Vietnam Textile and Garment Industry is not only a profound meaning for the Nam Dinh people, Nam Dinh Textile Workers and the Vietnamese Textile Industry but also to the general pride of the working class of Vietnam.

- In Nam Dinh: March 24, 1974 Mr. Le Huy Con - Former Deputy Minister of Industry; Mr. Vu Duc Giang - Chairman of VITAS, Mr. Le Tien Truong - VITAS Vice President / General Director of Vinatex, Mr. Le Nho Thuong - Chairman of Vietnam Textile and Textile Union, Mr. Truong Van Cam - Deputy Director / General secretary of VITAS together with the leaders and staffs of VINATEX, Vietnam Textile and Garment Union and some member companies came to offer incense remembrance at the Traditional Garment and Textile Company of Vietnam. At the ceremony of offering incense, Mr. Le Tien Truong reported to his predecessors on business performance in 2016 and orientation for development in 2017 of VINATEX and the industry.

- In HCM City: On 25 March 1977, the Garment Retirement Club held a meeting with retired officers and officials on the occasion of Traditional Textile and Garment Day. Attending the meeting were Mr. Bui Xuan Khu - Honorary Chairman of VITAS / former Vice Minister of Industry and Trade, Ms. Tran Thi Duong – ALP/  Former CPV Party/ Deputy General Director of VITATEX, Mr. Le Quoc An - Vice President of VITAS, Mr. Vu Duc Giang - Chairman of VITAS, Mr. Nguyen Dinh Truong - Vice President of VITAS/ Head of Garment and Retirement Club and other member companies in the South. The annual meeting of the textile day is the precious tradition of "drinking water, remembering the source" which is the culture preserved and handed down from first generation to the next. Each and every staffs will think and propose solutions to how the club will operate in the future so that it will fit both the current situation and the condition of the club as well as having the same conditions to accompany, support and contribute opinions to the in-service staff, contributing to the textile and garment industry overcome the difficulties and challenges, continue to develop strongly and achieve many bigger public.

 

Textile exports this year will grow 13-14%: According to Mr. Vu Duc Giang - Chairman of VITAS, Vietnam has joined many FTAs and that become big opportunity for enterprises to boost exports. However, Mr. Giang also said that The greater the integration, the more adaptive for the competition. Therefore, enterprises must enhance their management role so that they can improve product quality, competitive price and shorten delivery time. In the year 2016, textile and apparel export growth was only about 5%, 2017 exports will be better with a growth rate of 13-14%. Notably after US President Donald Trump came to power, there have been statements about TPP. So far American companies have started back in Vietnam. Even without the TPP agreement, Vietnam remains a member of the WTO so trade relations are still in place. The only difference is that some WTO tariff lines are higher than the TPP. However, this is also an opportunity for enterprises to be stronger than before the trade agreements and be active in other markets. Currently many enterprises have orders until the end of August 2017 and orders to this point is not ominous. According to Mr. Giang, the remaining problem is that the management role of enterprises must be ensured from offering competitive prices to other textile countries. Next is the quality assurance which customer put very high and can not negotiate. Last but not least, delivery time must be shorter, requiring more management ability, higher labor productivity and product quality.

 

 

Textile and garment exports to the United States remain the No. 1 market in the world: Many view that Vietnam will be disadvantaged if TPP is not approved by the United States. However, Mr. Le Tien Truong - Vice President of VITAS / General Director of Vinatex commented that TPP is not effected but the textile and garment industry in Vietnam is still developing. Vietnam Textile and Garment has been the No. 1 export market to the US. TPP is just a more favorable condition for faster export growth rather than a reason to reduce textile exports. Moreover, when there are more favorable conditions, then not all companies can take full advantage. Without TPP, enterprises have to compete more fiercely because there is no competitive edge of tariff reduction. "The new US government decision may not be included in the multilateral agreement but it will be strongly implemented in bilateral activities. In bilateral activities there may be incentives and tariff reductions for countries that the United States cares. We believe that integration is a major trend not only in Vietnam but also in other developed countries, "said Mr. Truong.

 

Truong Van Cam - Vice President of VITAS already said that TPP should not be seen as a magic wand for Vietnam's export industries event textile and apparel exports to the US last year reached more than $ 11 billion. Apart from TPP, Vietnam has more than 10 FTAs that have been signed therefore the enterprises just need to prepare carefully to exploit other markets and America. In short, Even though the US withdrawal from the TPP then Vietnam's textile and apparel industry still has not been significantly affected. Vietnam still also remains as “eye-catching” for investors because of its open economy and export-oriented rate is 0% from the WTO, FTA with the EU, Japan, South Korea ... Moreover, Vietnam has no textile auxiliary industry in the right sense, lack of fiber, weaving and dyeing. This is the link that many investors have invested most recently, they both want to take advantage of low cost and want to build supply chain in Vietnam, to export to many different markets.

 

Overview of the import and export situation in 2016 officially announced by the Ministry of Industry and Trade on 29 March 2017: Mr. Tran Quoc Khanh - Deputy of MOIT announced in Vietnam 2016 report that Vietnam's exports have grown from just over
$5 billion in 1995 and reached $177 billion by 2016 up 9% compared to the year of 2015. The full report is highly appreciated by Mr. Vu Duc Giang - Chairman of VITAS but he still has some doubts about the "deficiencies" of the report. Accordingly, the report does not assess the numbers of export and import through the small quota especially smuggling in some sensitive sectors. "The Ministry of Industry and Trade and customs should assess the impact of these things on the market, not just about importing and exporting commodities" Mr. Giang said. Another point is that the use of barriers, trade remedies must be adapted immediately to the barrier countries. In the past five years, the textile and apparel industry has made a huge difference such as exporting five key items to the world market: clothing, yarns, fabrics, accessories and fabrics for vehicle tire technology. In addition to the main export markets of the US, EU and Japan ... the textile and garment industry has created many new markets such as Korea (export rate inreased 3 recent years) and lately Vietnam has exported to many markets such as China, Turkey, India. But as soon as these products are exported, they are immediately fenced up by domestic producers. With the fact that exports have been blocked Mr. Giang said that the export report on the defenses should need to put forward how the measures. The Ministry of Industry and Trade should adapt and reply the country immediately when the technical barriers are erected.

 

Exports made to EAEU markets are not easy to increase in 2017: The procedure to turn the opportunity into profit brought from export in this market needs more time. VietNam Textile and Garment industry contributes nearly 20% of total export turnover. Earlier this year when commenting on the future of garment export, Mr. Le Tien Truong - Vice President of VITAS acknowledged that Vietnam-EAEU FTA has come into effect but markets for Vietnam are still too little. Textile and Garment export turnover is less than $ 200 million in total consumption of about $13 billion within the Union. "If enterprises want to increase export value, they must make great efforts to penetrate the market and step by step increase their market share because the agreement has been effective since early October 2016," Mr Truong said. Forecasting the possibility of export difficulties to the EAEU, the major solution of the textile and garment market is to continue to focus on the US and Japan. Maintaining 6% growth in these two areas is key to achieving the $30 billion export target in 2017.

 

Avoid dependency on one market: Vietnam's textile and garment industry needs to diversify and multilateralize trade relations to reduce the risk of over-reliance on the Chinese market. Trade relations between the two countries in the textile sector have grown rapidly over the years. Though we always want to develop equal, balanced, mutually beneficial business relations but we are too dependent on the Chinese market and there are risks that can not be underestimated in the trade. In all the products from China, Vietnam imported nearly $17 billion of raw materials and textile accessories. In all Vietnamese garment production, the value of raw materials from China accounts for 50% -65% depending on the item. Excessive reliance on one import and export market is a risk factor that can not be underestimated. If there is a change in the market of raw materials for production inputs, the employment and income of laborers will face great difficulties which the export turnover will be reduced, negatively affecting the trade balance and international payment. Vietnamese companies need to strengthen their linkages and expand their market to complementary economies such as Japan, Korea, the European Union or the Middle East... join the international value chain and collaborate with partners of those markets to avoid over-reliance on a market to avoiding unnecessary risks.

 

Thua Thien-Hue develops an IP to support the garment and textile industry. In the province, there are 50 garment enterprises with 300 sewing lines and 500,000 spindles which create jobs and stable incomes. For nearly 24,000 employees in the planning of the textile and garment sector from now to 2020, Thua Thien Hue province is expected to invest 6.622 vnd billion to develop into one of the central textile and garment cities. Notably, the province has made efforts to establish Phong Dien textile IZ on 400 hectares. The province is considered as a supporting infrastructure investment in the IZ to build a centralized local wastewater treatment system and ensure national technical standards on wastewater for textile and dyeing industry. In this IZ, the province will give priority to investment projects with advanced technology that meet the European Union technical standards or equivalent. The project on construction of the IZ will be supported 100% of funds for clearance of bombs, mines and explosives from the local budget. The project will also be exempted from rent for construction of common infrastructure; The remaining land area is exempted from rent for 15 years after the construction period; To borrow up to 70% of the total investment capital from credit institutions together with many preferences on enterprise income tax and personal income tax.

 

Children's Fashion Week on Nguyen Hue Walking Street: On March 24 – 26 March 2017 at the Nguyen Hue Walking Street Center Stage HCMC took place Vietnam Junior Fashion Week. During this event, hundreds of designs, the latest children's fashion collections of designers such as Kelly Bui, Rabity, Phuong Nguyen Silk, Den Nguyen, Kim by Phuc Tran, Mona Home, KK Children, CutieLand ... was performed and introduced. It is said that this is the second time of Vietnam Junior Fashion was held. By choosing the walking street to perform, the organizers wish to create more conditions for children, young models and parents to exchange and share experiences together.


STC Vietnam in line with the textile and footwear industry: On 17 March 2017 at the City Technology Park n HCM City, STC Vietnam has officially put the consumer goods laboratory in operation. This is a strategic move by the STC Group in expanding into Southeast Asia. With more than 54 years of experience in providing audit services and extensive office network in Asia, Europe and America, STC is confident of being a priority choice in the consumer goods industry in general and Textiles and footwear of Vietnam in particular. STC operates on a non-profit basis, so the core values that STC is aiming for are the sustainable development of the community, thus ensuring transparency and community. STC service bring not only test reports but also technical advice from a team of leading experts from choosing test criteria to improving product after testing so the production from the development stage of the model, you have the strict safety requirements for export to each market.

Sourced from VITAS

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