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    Improving The Competitiveness Of Vietnam's Garment Industry Needs To Develop Supply Chain

    2012/4/18 23:22:00 5

    VietnamTrade AidClothing

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


    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 related to Korea, India and Japan.


    The free trade agreement signed by New Zealand and China is of great significance.


    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, said that a serious reliance on imported raw materials is Spin And one of the reasons why the supply chain of garment manufacturing is fragile.


    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 currently consumes about 400000 tons of cotton per year, but only 3000 tons are supplied by domestic supply chains, and the rest need to be imported.


       Vietnam? Most of the machinery, chemicals and dyes used in the textile and garment industry are imported, resulting in an inefficient supply chain. In addition,


    Vietnam still 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 adoption.


    Urgent measures to enhance the value chain of Vietnam's textile and garment industry.

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