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Vietnamese textile and garment traders or "camel carers"?

07-11-2017

At the conference "The prospect of textile and apparel exports in 2018 and the future of the global value chain" has been organized by the Ministry of Industry and Trade, many people said that the textile and garment industry in Vietnam has much to develop, but the Does the company take advantage of the opportunity to grow, become the Silk Road owner or just the "camel carer"?

Main production is still processing

Tran Thanh Hai, deputy head of the Import-Export Department under the Ministry of Industry and Trade, reported that by the end of the third quarter of 2017, the textile and garment industry gained nearly US $ 23 billion in export value, up 9.8 percent over the same period. Period. It is forecasted that in the fourth quarter of 2017, the export turnover of the industry will reach US $ 31 billion, up 10% over 2016. , Korea ... have good growth. Thus, textile and garment industry is one of the highest export turnover of Vietnam.

However, according to Tran Thanh Hai, due to the method of production is mainly processing for foreign orders, so the value-added rate is not high. One of the weaknesses is the underdevelopment of the textile supply chain, and this is the main reason for the low value-added textile industry in comparison with many countries in the world.

According to Pham Xuan Hong, President of Agtek, the withdrawal of the United States from the TPP has negatively impacted the industry. Some customers intend to transfer orders to Vietnam with signs that the textile exports in 2016 fall into a state of bleak. This situation continues to last until the first half of 2017. However, until the second half of 2017, enterprises in the industry have rapidly improved production systems; Focusing on a number of strengths, while responding quickly to market demand has made the sector's exports significantly improved.

Economist Pham Tat Thang said that during the past decade, commodity exports have always been the bright spot in the Vietnamese economy. In particular, textiles are always impressive. In 2016, although not reaching the target, the total export turnover reached 23.8 billion USD, up 4.5% compared with 2015.

The Vietnamese textile and garment industry is still outsourced to the world famous brands.

The unit price will be squeezed down

Sharing about the prospects of the textile and apparel industry in 2018, Pham Xuan Hong said, 2018 forecasts will be better than 2017, the growth of the sector can still remain in double digits. Although confident about the market prospects for the next year, Hong still worried, the industry will be fierce competition by the cost of insurance, land, taxes ... of the strong countries of textile such as Myanmar, Cambodia, Bangladesh ... still lower than Vietnam.

Meanwhile, in 2018, the social insurance premium is calculated on the total income will cause the cost of enterprise spike. The export market is not really convenient, the trend of fast fashion makes the requirement of short delivery time, from 30-45 days to 15 days also create great pressure for manufacturers.

Nguyen Xuan Duong, Chairman Hung Yen Garment Corporation disturbed "in 2018, said the volume will not lack, but unit prices of items will be pressed down. This is a common situation in all markets and is a concern for businesses. "

Prior to the difficulties, experts advised: Along with the search for traditional processing orders, enterprises should soon switch to the form of purchase of semi-finished materials to varying degrees. In this way, we hope to participate in the higher stage in the production chain. Apart from traditional markets, it is necessary to focus on developing markets in ASEAN, Eurasia, India, in which special emphasis is placed on building linkages with the distribution system in the grassroots market. in.

Besides, the State issued the appropriate policies to attract foreign investment as well as domestic investment in fiber production, weaving, dyeing ...; research and attract all resources for the development of smart textile factory, which integrates Internet connectivity, cloud computing technologies, 3D printing ...

Mr. Tran Thanh Hai expressed that the textile and garment Vietnam will be where, what role in the Silk Road? And will Vietnam Textile and Apparel be the trader - the mastermind of the Silk Road, or is it just the "camel handler" - a factor that creates little value on the Silk Road? That depends a lot on the efforts of the textile and garment enterprises today.

Source Diep Linh

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