Industry news

Vietnam Textile and Garment Industry: Change to catch the head

21-07-2018

Standing before the Industrial Revolution 4.0, Vietnam's textile industry is facing many challenges to maintain and improve its competitiveness. As one of the sectors contributing to the socio-economic development, with 7,000 enterprises, creating jobs for about 3 million laborers, the Vietnamese garment and textile community is making efforts to implement the solutions. In addition, it also creates the source of local production and NPL, reducing import dependence.

Regarding the situation of production and business activities, as well as the restructuring of new technologies of the Vietnam Textile and Garment Industry in the context of Vietnam's integration into the world, PV Magazine Vietnam fashion has held talks with Mr. Vu Duc Giang - President of Vietnam Textile and Apparel Association (VITAS) on the above issues.

Reporter: What do you think about the current situation of Vietnam's textile and garment industry?

The Vietnamese textile and garment industry is still experiencing strong and sustainable growth. In the first 5 months of 2018, DMVN exports $ 13.4 billion, an increase of 16.48% over the same period last year, higher than the growth rate of 11.49% in the same period of 2017-2016. At present, garment enterprises are making great efforts in restructuring new technology, investing in modern machinery and equipment, in which 4.0 technology is also being applied to the automation model. some production lines. In the textile and apparel development strategy, we think that trade agreements are also an important part of the decision to shift investment and develop new projects of FDI enterprises and enterprises. country.

Reporter: Do you have any predictions for the future of DMVN industry in the coming time?

DMVN has been set up by the year 2030 - 2035, including 03 strategic solutions for sustainable development.

Firstly , we are based on the terms and benefits of trade agreements, which is an open market when tax rates return to zero in the next two to three years. Currently, Vietnam has signed 14 trade agreements globally.

Secondly,  we build solutions in the development and transfer of textile-dyeing industries to create supply shortages for the industry by reducing imports and increasing domestic production. Including the contribution of FDI enterprises and domestic enterprises. The FDI enterprises here are not only encapsulated in Asia such as Hong Kong, China, Taiwan ... but now European and US businesses have invested in Vietnam. This is a sustainable motive in our strategy of development of Vietnam Textile and Garment Industry.

Finally,  the solution in the integration strategy, which is the solution for sustainable training resources for the industry DMVN. In the process there will be the cooperation of non-governmental organizations, the world, as well as some programs of the Government of Vietnam to support the strategy of development, training, branding, brand For DMVN industry.

Reporter: Currently, NPL textiles are most imported from the Chinese market. So, when we set the goal to increase the production of NPL in the country, the percentage of imports of NPL from this country will decrease to how much in the next 5 years?

Currently, the total import of the country is about $ 14 billion for NPL textiles, of which China only accounts for 46%, the rest we import from Korea, Indonesia, Malaysia, Thailand, ... In an open market , I think, which products are good for business, they will import and vice versa. Therefore, we can not stop the product line, as long as we achieve the goal of quality, price and effective on time delivery, the business will still enter. China has its strength and Vietnam has its own strengths. There are Chinese items that have started importing from Vietnam, for example yarn of Vietnam that are now exporting very competitive to China.  

Reporter: According to some sources, now Nike and Adidas brands are moving from China to Vietnam. What do you think about this case?

I think this shift is indispensable. The structure of the market is the periodic shift of the textile industry in the world. As far as I know, Nike is not only moving to Vietnam but also to other countries. Maybe it is a political shift, or some cost affects price, competitiveness ... 

Reporter: According to him, the industry is developing DMVN sustainable?

I think that the sustainable development of DMVN industry at this moment is a big challenge for our business community. However, it is precisely because of that challenge that we recently held a workshop on "Applying HIGG in building a sustainable brand for the DMVN sector" in all three regions of North - Central - South to communicate with. the business community solutions to build the system meet the standards, so that we can obtain stable orders from partners, aiming for long-term development of the industry DMVN. I think that if the enterprises fail to meet the standards for assessment, the benefits of the signed trade agreements will not bring them anything. Therefore, the "survival" with these businesses is the investment in human resources,

Reporter: The world is now very interested in the "trade war" between the United States and China. Do you have any concerns or comments on the impact of this war on the Vietnam market?

I think that if there is a "trade war" between the United States and China, inevitably those countries with common borders with China will be affected. As a matter of fact, we still have some influence in some product lines. Currently, the two sides only issue a number of issues related to tax rates, but how criteria have not been given specifically. In addition, the list of Chinese products taxed by the United States is not available for textiles.

Reporter: Vietnam Textile and Garment Association has announced to the member businesses about the issue mentioned, sir?

Our business community is very calm about the issue. We have made recommendations to businesses are not too worried, because if affected some market there will be other markets offset.

Thank you for the conversation! 

According to vinatex.com