Vietnam: Apparel Industry Supply Chain To Promote Industry Development

At a seminar held in Hu Zhiming, participants stressed the importance of developing effective supply chains for improving the competitiveness of Vietnam's manufacturing industry.

At the seminar organized by the Ministry of industry and trade (MoIT) and the multilateral trade assistance program III (EU Vietnam MUTRAP III), participants stressed the urgent need for Vietnam's manufacturing industry, such as

Speaking at the seminar, Le Trieu Dung, deputy director of MoIT's multilateral trade policy department, said Vietnam urgently needed to increase the supply chain of raw materials to enhance the value connotation of key export industries.

An improved supply chain will help to negotiate the free trade agreement with the EU.

In addition, it will be of great significance to the existing free trade agreements signed with South Korea, India, Japan, New Zealand and China.

In manufacturing, about 90-95 of the added value is realized through supply chain, including raw materials input, design, manufacturing, research and ancillary industries.

Finished products only account for 5-10% of the value chain.

Vietnam textile and Apparel Association (

In explaining the problem, she said Vietnam's textile and garment manufacturing industry used only 10% of its raw materials to invest in the country.

For example, Vietnam is currently consuming about 400000 tons of cotton per year, however, only 3000 tons are supplied by domestic supply chains, and the rest need to be imported.

Most of the machinery, chemicals and dyes used in Vietnam's textile and clothing industry are imported, resulting in an inefficient supply chain.

Vietnam also lacks sufficient links to promote distribution and retail networks.

Ms. Dang Phuong Dung said that the large quantity of exports could not increase the value. Due to the lack of an effective supply chain, she stressed the need for urgent measures to strengthen the value chain of Vietnam's textile and garment industry.