08:14 | 19/04/2016 Trade
(VEN) - The Trans-Pacific Partnership and free trade agreements will provide development opportunities for the Vietnamese garment and textile sector. Vietnam will be able to become an attractive destination for the global value chains.
The APEC workshop on promoting the participation of SMEs in textile and apparel global value chains in Hanoi
Deputy Minister of Industry and Trade Nguyen Cam Tu when addressing the APEC workshop on promoting the participation of small and medium-sized enterprises (SMEs) in textile and apparel global value chains organized in Hanoi between March 29 and 30 said that the garment and textile sector remained passive in participating in the global value chains.
A value chain is a range of activities aimed at creating a product or a kind of service via different periods from its conception to its end use and beyond.
The activities that comprise a value chain can be contained within a single firm or pided among different firms, within a single geographical location or spread over wider areas.
More than 90 percent of businesses in developing economies in Asia-Pacific, especially in Vietnam, are SMEs. Despite their large proportion and important role in promoting economic growth, ensuring social security and creating jobs for workers, SMEs are vulnerable to objective and subjective factors. If taking advantages of resources, modernizing production and participating in the global value chains, SMEs will be able to promote growth.
Multilateral Trade Policy Department Deputy Director Pham Quynh Mai indicated many difficulties facing the Vietnamese garment and textile sector, including large dependence on raw material imports from China. If import markets face unfavorable fluctuations, the domestic garment and textile sector will be seriously affected.
Almost all companies operating in the Vietnamese garment and textile sector are SMEs. Therefore, the participation in the global value chains remains limited. In addition, they have not met high requirements from foreign partners.
Economist Acuviarta from Indonesia’s Pasundan University said that the Indonesian garment and textile sector has made significant contributions to their exports. To create favorable conditions for SMEs to deeply participate in the global value chains, it is needed to (1) help them invest in material areas and access bank loans, (2) promote logistic planning, (3) pProvide directions for SMEs to manufacture products to meet domestic demand and apply high technology in production.
Deputy Minister of Industry and Trade Nguyen Cam Tu said that in the context of international economic integration, SMEs need to actively participate in the global value chains. Vietnam has made great efforts to help SMEs strengthen cooperation with APEC members and deeply participate in the garment and textile global value chains.