Vietnam’s Dependency of imported raw material should decrease
Sixty per cent of foreign raw material used in textile and garment sector of Vietnam, is being imported, out of which 50% is from China. The Chairman of the HCM City Textile and Garment -Embroidery Association, Pham Xuan Hong said, “The companies are trying to limit imports of raw materials but still a lot need to be done, to curb imports of raw materials. The Vietnamese garment enterprises are technically quite sound however, the requirement for the origin of yarn, weaving and dyeing, which must be met under CPTPP, is a big challenge because Vietnam imports more than 60 per cent of raw materials from outside CPTPP member nations.
“The State should support businesses by creating a fair playing field and minimising administrative procedures to raise competitiveness in domestic market,”- Hong
The Nam National Garment and Textile Group (Vinatex) Managing Director– Cao Huuu Hieu said the sector would have many opportunities to grow. We have skilled workforce, advance technology, some very good FDI’s that would establish production chains from yarn, fabric and garments in Vietnam. He said, ““If businesses do not invest and improve capacity, it will be difficult for them to compete in the domestic market, especially with products coming in from CPTPP member countries,” Hieu said. “They need to take initiative in producing raw materials and minimising dependence on imported materials to help the industry enjoy the benefits of CPTPP.”
“Solving raw material sourcing issues is not a simple task; CPTPP is instrumental in attracting foreign investment in the raw materials manufacturing industry; however, this industry carries risks of environmental pollution if outdated technology is used,”-Hieu
VITAS (Vietnam Textile and Apparel Association) is all set to touching export turnover of USD 40 billion, 10.8 per cent YoY increase. The industry’s trade surplus is expected to reach USD 20 billion this year. These targets are based on 2018 export turnover which touched USD 36 billion, with 16% growth rate YOY. If the growth accelerates in this fashion, Vietnam shall become one of the top three exporters of textiles and garments in the world. According to Vu Duc Giang, Chairman of VITAS, the order status as of now is very promising, with many manufacturers booked for 6 months to one year’s orders. “The sector is growing very swiftly and the flow of capital invested in the textile and dyeing industry is very encouraging,” remarked Giang.News Region Vietnam