Improving the quality of textile and garment exports

14:02 | 05/09/2014 Trade

(VEN) - The Vietnamese textile and garment industry is developing domestic material supply to prepare for higher modes of production, add value to its exports and take opportunities and cope with challenges associated with trade agreements to be signed in the coming time.

Under pressure of trade agreements to be signed soon, the textile and garment industry is working hard to develop domestic material supply and change modes of production to improve the quality of textile and garment exports

According to data from the Ministry of Industry and Trade, the textile and garment industry exported products worth US$11.48 billion in the first seven months of this year, up 19.4 percent from the same period in 2013. Textile and garment were the biggest export of the processing industry in the first seven months of 2014.

Vietnam Textile and Apparel Association (VITAS) Secretary General Dang Phuong Dung said that although textile and garment exports yielded high revenue they remained modest in terms of added value as export producers relied considerably on imported materials; the producers found only one percent and 20.2 percent of all cotton and fabric that they needed domestically, respectively. The domestic textile and garment industry was capable of producing six million spindles of fiber per year but only 30 percent of those spindles of fiber satisfied export production standards.

The Vietnamese textile and garment industry was passively involved in the global textile and garment supply chain while mainly making products according to the order of foreign partners. Domestic product design teams have also proved inadequate. Businesses making products according to the order of foreign partners haven’t taken the initiative in finding customers and expanding the market.

Under pressure of trade agreements to be signed soon, the textile and garment industry is working hard to develop domestic material supply and change modes of production to improve the quality of textile and garment exports.

Dung said that textile and garment production was attracting a large amount of investment capital from world leading textile and garment groups such as Jiangyin Zhenxin (China), Texhong (Hong Kong, China), and Kyung Bang (the Republic of Korea).

 Domestic enterprises were pouring capital into development of domestic material supply. Since early this year, the Vietnam National Textile and Garment Group (Vinatex) has implemented 32 projects, including nine fiber projects, 11 textile and dyeing projects and 12 textile and garment projects. The group’s capacity increased to 600 tonnes of fiber, 400 tonnes of dyed fabric and two million garment products per month.

Textile and garment businesses are working hard to improve and modernize modes of production in order to add value to their products.

Vinatex Deputy Director General Hoang Ve Dung said that after many years of making products according to the order of foreign partners, businesses enriched their experiences in production and management and built a high quality workforce capable of fulfilling difficult orders, which is a good condition for businesses to shift to production under the FOB (free on board) and ODM (original design manufacturer) modes.

Dung said that shifting to higher modes of production to add value to product is an inevitable trend of businesses, especially when Vietnam is to sign a series of trade agreements. However, businesses need to carefully prepare human resources. Material producers should research the market and make products according to market demand./.

By Bui Viet

Theo ven.vn