Vietnam'S Textile And Garment Manufacturing Industry: Lack Of Effective Supply Chain

At a seminar held in Hu Zhiming, participants stressed the importance of effective development.

At the seminar organized by the Ministry of industry and trade (MoIT) and the multilateral trade assistance programme III (EU Vietnam MUTRAPIII), participants stressed the urgent need to develop supply chains for Vietnamese manufacturing industries, such as textile and garment industries.

Speaking at the seminar, Le TrieuDung, 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.

Dang Phuong Dung, President of the Vietnam textile and Garment Association (Vitas), said that a serious dependence on imported raw materials is one of the reasons for the fragility of the supply chain of textile and garment manufacturing industry.

In clarifying this problem, she said, Vietnam's textile and clothing industries use it.

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.

In addition, Vietnam still lacks sufficient promotion.

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.