The HCM City textile and garment industry has achieved growth of 10.5 per cent in the first eight months. — VNA/VNS Photo Thanh Vu
The HCM City textile and garment industry has achieved growth of 10.5 per cent in the first eight months.
According to the city’s Department of Industry and Trade, a raw materials supply chain consisting of textile, dyeing and garment companies has been successfully set up, helping reduce imports and even export to some foreign markets.
Exports of feedstock during the period were worth US$125.5 million, a year-on-year increase of 10.4 per cent while imports fell by nearly 1.1 per cent to $485 million.
The city’s Garment Textile Embroidery and Knitting Association said design is the most important aspect in creating value for the textile and garment industry, and city’s companies are focusing on design and distribution while production is being shifted to neighbouring provinces.
This has enabled companies to take advantage of low-cost labour in neighbouring provinces and focus on increasing their competitiveness.
Many textile and garment enterprises have taken advantage of free trade agreements (FTAs) with Japan, South Korea and Australia to increase their exports, while other important trade deals like the CPTPP and Viet Nam-Europe FTA are set to come into effect soon, Sai Gon Giai Phong (Liberated Sai Gon) newspaper quoted Nguyen Thi Tuyet Mai, chief representative of the Viet Nam Textile and Apparel Association in HCM City, as saying.
Viet Nam is one of world’s top 10 exporters of biggest textile and garment products.
Creating global brand names
The Vietnamese textile and garment industry has achieved a strong foothold in international markets, but has not paid attention to building brands, analysts said.
Mai said: “Many Vietnamese textile and garment products are sold in the international market under the brand names of Thai, Chinese and European companies. Therefore, the value added by the industry is not high.”
The Ministry of Industry and Trade said to improve the situation it is working with relevant agencies to set up an export capability support project for local enterprises.
It would assist enterprises that do not have export experience export their products under their own brand names through foreign retailers in Viet Nam like Aucham, Lotte, Aeonmall, and Metro, the ministry said.
This would allow them to become familiar with international quality, design and safety standards, it said.
For those with experience, it would instruct commercial counselors abroad to provide up-to-date information and support, it said.
It is also making plans to advertise Vietnamese products, changing the focus, which used to be on price, to upmarket segments, it said.
Nguyen Phuong Dong, director of the industry and trade department said his department has identified three key textile and garments products.
It has also identified three locations for building fashion centres in District 9, two in Truong Thanh Ward and one in Long Thanh My Ward, and the city’s administration will choose one of them.
“This fashion centre will help add value to the textile and garment sector,” Dong added. — VNS