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Vietnam: Textile and garment industry takes action to rise 10% in 2018
The Hanoitimes – With the significant rise in exports posted in the first two months of the year, Vietnam’s textile and garment industry expected to meet the 10 percent growth target set for 2018.
According to Le Tien Truong, General Director of the Vietnam National Textile Group (Vinatex), the sector earned US$4.3 billion from exports in the first two months this year, up 22.3 percent year on year.
Domestic textile and garment firms also expect to benefit from the signing of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CP TPP) on March 8 in Chile.
According to Pham Hong Hai, general director of HSBC Bank (Vietnam), with the US not present in the CPTPP, Vietnam’s benefits may be less than the TPP, for example, GDP will only move up 1.32 per cent instead of 6.7 per cent, exports will increase by four per cent instead of 15 per cent. However, in general, industries like garments and textiles, leather footwear and labor intensive ones will still benefit.
Vietnam will be able to take advantage from accessing to member markets of the deal, especially those on the other side of the Pacific like Canada and Mexico.
This is amplified by the fact that some other countries and markets are expressing a good will to take part in the deal like Taiwan, Korea, Thailand, Indonesia and the Philippines which will bring the benefits of all members three times, equivalent to roughly $500 billion per year.
According to Truong, the garment and textile sector is aiming growth of 10 percent in 2018 in spite of huge challenges and fierce competitions in the global market this year, particularly from China, Myanmar and Cambodia.
To realize the target, the sector will improve product quality and ensure on-schedule deliveries at reasonable prices to enhance its competitiveness.
The use of technology will be enhanced to increase automatic production, as well as IT-based management and workers’ skills.
To boost exports, Truong Van Cam, deputy president of the Vietnam Textile and Apparel Association (Vitas), said that the industry has been striving to apply modern technologies, especially industry 4.0 technologies in production to improve efficiency, productivity, diversify products and enhance product quality for higher added value.
Nguyen Xuan Duong, President of the Hung Yen Garment Corporation, said: “In 2018, there might be many orders and a great volume of products but prices will drop. It’s a common trend in all markets and is causing headaches for Vietnamese garment and textile enterprises because all types of input costs including workers’ salaries are on the rise. Increasing labor productivity through improving technology, equipment, and business management is considered the only solution.”
Vitas has recently also proposed that the Government review its policies of wages, insurances, administrative procedures and checks for import/export for amendments to remove the bottlenecks for garment and textile companies.
Pham Tat Thang, a senior researcher with the Ministry of Industry and Trade, said Vietnam’s textile and garment import markets are experiencing unforeseen fluctuations caused by trade protectionism.
“Major markets are closing and this affects Vietnam. With competitors like Pakistan and China thriving, Vietnam must improve its competitiveness. Domestic companies should invest more in technology to catch up with the tendency,” Thang noted.
Vu Duc Giang, Vitas Chairman, called for combining production, development of technology, branding, promotion, and mastering of advanced technologies, especially made-in-Vietnam technologies.
According to Pham Hong Hai, general director of HSBC Bank (Vietnam), with the US not present in the CPTPP, Vietnam’s benefits may be less than the TPP, for example, GDP will only move up 1.32 per cent instead of 6.7 per cent, exports will increase by four per cent instead of 15 per cent. However, in general, industries like garments and textiles, leather footwear and labor intensive ones will still benefit.
Vietnam will be able to take advantage from accessing to member markets of the deal, especially those on the other side of the Pacific like Canada and Mexico.
This is amplified by the fact that some other countries and markets are expressing a good will to take part in the deal like Taiwan, Korea, Thailand, Indonesia and the Philippines which will bring the benefits of all members three times, equivalent to roughly $500 billion per year.
According to Truong, the garment and textile sector is aiming growth of 10 percent in 2018 in spite of huge challenges and fierce competitions in the global market this year, particularly from China, Myanmar and Cambodia.
To realize the target, the sector will improve product quality and ensure on-schedule deliveries at reasonable prices to enhance its competitiveness.
The use of technology will be enhanced to increase automatic production, as well as IT-based management and workers’ skills.
To boost exports, Truong Van Cam, deputy president of the Vietnam Textile and Apparel Association (Vitas), said that the industry has been striving to apply modern technologies, especially industry 4.0 technologies in production to improve efficiency, productivity, diversify products and enhance product quality for higher added value.
Nguyen Xuan Duong, President of the Hung Yen Garment Corporation, said: “In 2018, there might be many orders and a great volume of products but prices will drop. It’s a common trend in all markets and is causing headaches for Vietnamese garment and textile enterprises because all types of input costs including workers’ salaries are on the rise. Increasing labor productivity through improving technology, equipment, and business management is considered the only solution.”
Vitas has recently also proposed that the Government review its policies of wages, insurances, administrative procedures and checks for import/export for amendments to remove the bottlenecks for garment and textile companies.
Pham Tat Thang, a senior researcher with the Ministry of Industry and Trade, said Vietnam’s textile and garment import markets are experiencing unforeseen fluctuations caused by trade protectionism.
“Major markets are closing and this affects Vietnam. With competitors like Pakistan and China thriving, Vietnam must improve its competitiveness. Domestic companies should invest more in technology to catch up with the tendency,” Thang noted.
Vu Duc Giang, Vitas Chairman, called for combining production, development of technology, branding, promotion, and mastering of advanced technologies, especially made-in-Vietnam technologies.
Source: http://www.hanoitimes.vn/economy/2018/03/81E0C31C/textile-and-garment-industry-takes-action-to-rise-10-in-2018/