The co-operation of the two sides would also help the industry better exploit the ASEAN market of 600 million people, when the ASEAN Economic Community becomes effective by the end of the year. — Photo baophapluat

HCM CITY (Biz Hub) — The garment and textile industries in Thailand and Viet Nam should strengthen co-operation to improve competitiveness and exploit the ASEAN market, delegates said at a meeting held in HCM City yesterday.

Nguyen Van Tuan, deputy general secretary of the Viet Nam Textile and Apparel Association, said in recent years that Viet Nam had emerged as a production hub for garment and textile products.

However, the industry has had to import up to 85 per cent of materials needed for production.

He said cooperation with Thailand was necessary as it has advantages in textiles, design and administration.

Phasiree Orawattanasrikul, vice chairwoman of Thai Garment Manufacturers Association's (TGMA) Trade and Investment Promotion sub-committee, said Thailand's textile and garment industry had an entire supply chain cycle from upstream to downstream, from yarn manufacturing to apparel manufacturing. It also includes fashion design.

Meanwhile, Viet Nam has the skills and ability to become an apparel production hub for international buyers, but it lacks upstream and midstream channels, she said.

"Therefore, establishing fully vertical integrated-supply chain between Thailand and Viet Nam is one of the big steps toward granting and sustaining our competitiveness," she said.

Tuan said total global apparel trade was worth US$800 billion last year, and is expected to top $1,664 billion in 2030, offering a huge opportunity for the industry.

Asian production will account for 60 per cent the world's total production by 2030 from the current level of 50 per cent, he said.

With increasing costs in China as well as competitiveness with other industries, many garment and textile producers have shifted their production base to ASEAN countries, including Viet Nam.

Viet Nam has signed, and is negotiating, a number of free trade agreements, including the Trans Pacific Partnership, which are expected to bring huge benefits to the garment and textile industry.

However, to enjoy benefits, Vietnamese companies must meet product origin as well as yarn-forward regulations.

With Thailand not included in the TPP, Thai enterprises should enhance co-operation with Vietnamese firms to produce fabric and materials in Viet Nam to take advantages of benefits brought from trade agreements, he said.

The co-operation of the two sides would also help the industry better exploit the ASEAN market of 600 million people, when the ASEAN Economic Community becomes effective by the end of the year.

Viet Nam's textile and garment industry is always on the lookout to improve competitiveness and achieve higher productivity, thus increasing its edge in the world market, he said.

ASEAN apparel shows

The upcoming GFT, the most comprehensive show for garment and textile manufacturing industry in ASEAN, will bring opportunities for Vietnamese firms in the field to broaden knowledge, and update trends and latest technology and network across ASEAN, Duangrat Udomsomporn, senior manager-portfolio Reed Tradex Company, said.

To be held in Bangkok from July 9 to 12, the GFT will be held concurrently with the Garment Manufacturers Sourcing Expo 2015 (GMS), ASEAN's only exhibition on materials, accessories, and equipment for garment and textile manufacturing. It is expected to meet the needs of manufacturers from downstream to upstream, she said.

Besides exhibiting technologies and solutions from around 250 leading brands from 25 countries, the expo will also include the ASEAN garment and textile summit and business matchmaking, allowing participants to receive exciting and in-depth perspective on current and future trends of the industry.

Trade turnover between the two countries totalled $10 billion last year, a year-on-year increase of 12.5 per cent, Malinee Harnboonsong, Thailand's Director of International Trade Promotion, said.

Last year, Viet Nam earned $76 million from yarn exports to Thailand and spent $194 million to import fabric from the country, she said. — VNS