Vietnam Textile & Garment Industry Expo 2010

Vietnam expects to reach textile and garment export revenues of US$10.5 billion in 2010, 15 percent higher than 2009. Investment in material production to increase the local availability of input materials is something the textile/garment industry needs to emphasize to ensure this goal is met.

Urgent need

Last year, the production of input materials for the manufacturing of textiles and garments inside Vietnam increased, but not enough to meet local demand. Statistics indicate that fabric and material producers in Vietnam do not yet satisfy the demand of domestic textile/garment businesses. Specifically, cotton, synthetic fibers, fabric, cloth and auxiliary material production facilities in Vietnam have satisfied just 10, 60, 70, 50 and 70 percent of Vietnamese textile/garment businesses’ demand for cotton, synthetic fiber, fabric, cloth and auxiliary materials, respectively. Textile/garment materials production is posing a problem that needs to be quickly solved to increase the added-value of locally-produced textiles and garments.

The Phuong Dong Garment Joint Stock Company informed that they have to import 60-70 percent of their input materials and that this has led to an insufficient added-value of the company’s products.

The Hanoi Textile and Garment Joint Stock Company remarked that they have to import all of their input materials, and that the company imports about 20,000 tonnes of cotton at a cost of US$24.5 million each year to make fiber, knitwear, denim, towels and other products. Not only these two companies, but also many other businesses would rather buy locally produced materials to save time and decrease cost.

Material producers in Vietnam do not satisfy textile/garment makers’ demand for materials. There are cases where locally produced materials are not more competitive than imports because their prices are not lower and quality is inconsistent.

The Government recently approved a program for cotton development to 2015. The Vietnam National Oil and Gas Group (PetroVietnam) and the Vietnam National Textile and Garment Group (Vinatex) are constructing a synthetic fiber plant in the Dinh Vu industrial zone in Hai Phong. This plant is expected to go on-line in 2012 and satisfy all of the textile industry’s demand for synthetic fiber.

Additionally, VINATEX is building four textile and dyeing industrial zones in Ninh Binh, Nam Dinh, Long An and Tra Vinh.

Opportunity

Apart from capital, advanced technology and equipment is a major problem for domestic textile/garment material development.

The 2010 Vietnam Textile & Garment Industry Expo was held from April 14-17 at the Tan Binh Exhibition and Convention Center in Ho Chi Minh City. Sponsored by the Ministry of Industry and Trade, the Vietnam Textile and Apparel Association (VITAS) and the Association of Garments, Textiles, Embroidery and Knitting of Ho Chi Minh City (AGTEK), this event was organized by VINATEX, Vietcham Expo, and CP Exhibition, the latter of which is based in Hong Kong. This event is an opportunity for Vietnamese companies to learn about and buy modern technology equipment from world-leading foreign manufacturers.

The Vietnam Textile & Garment Industry Expo 2010 attracted 119 companies from 28 countries and territories including France, Germany, China, India, Italy, Japan, the Republic of Korea (RoK), Malaysia, Singapore, Sweden, Switzerland, Thailand, the UK, and more.

This event paves the way for developing business cooperation between domestic and foreign textile/garment businesses. Along with booths and displays, the exhibition features sideline events such as seminars on supply chains, textile/garment production improvement, technology application and more./.

Tags: Vietnam Garment, Vietnam textile