08:35 | 25/09/2016 Cooperation
(VEN) - Vietnam currently ranks 18th among trade partners of Mexico. However cooperation between the two sides in the garment and textile sector remains limited.
Vietnamese and Mexican businesses have actively exchanged information about garments and textiles
According to National Chamber of Textile Industry of Mexico (Canaintex) Chairman Alfonso Juan Ayub, Vietnam and Mexico have a quite developed textile industry, recording high positions on the world garment and textile map. However cooperation between the two sides remains limited. Garments and textiles are one of key sectors with the largest export turnover in Vietnam that is expected to benefit from different FTAs, including the TPP.
Mexico has 10,560 garment and textile businesses with export turnover of around US$6.5 billion a year. Mexico’s garment and textile exports to the EU and Asia have accounted for 19 percent of total exports. “To expand market share, we pay special attention to seeking partners to develop supply chains and improving added value for products,” Alfonso Juan Ayub said.
Vietnam Textile and Apparel Association Chairman Vu Duc Giang said that many opportunities have been provided, but geographical distance is seen as the biggest barrier in promoting cooperation between the two sides. Mexico’s garment and textile and dyeing, woven fabrics, fashion design and training of human resources that are Vietnam’s weaknesses. Therefore, cooperation with Mexico will help the Vietnamese garment and textile sector overcome difficulties.
He also recommended that high transport cost due to long distance between Vietnam and Mexico will directly affect product prices. Other obstacles should be taken account include limitation on payment methods, material supplies and the lack of information on businesses of each other.
Vietnamese businesses need to select products basing on their strengths and high added value in accordance with consumer taste. Finding more about the business environment and legal documents in Mexico is also needed. “To promote exports to Mexico, domestic businesses need to produce good-quality products with reasonable prices,” Giang stressed.
Ho Guom Garment Joint Stock Company General Director Phi Ngoc Trinh added that Mexico is a potential market with quality standards equivalent to the US and the EU. Mexico can import all kinds of Vietnamese garments and textiles. Therefore, Vietnamese businesses have many options in promoting exports to Mexico. In particular, some Mexican importers are looking for Vietnamese suppliers in order to replace goods produced in China.