Will Vietnam'S Sewing Machine Market Become The Next "India"?

From the summer of 2007 to the beginning of 2008, Vietnam was among the ten largest textile exporters in the world, Vietnam's textile and footwear exports exceeded US $10 billion, and Vietnam's textile and garment exports in 2010 amounted to 10 billion to 12 billion dollars.

With the development of Vietnam's garment industry, the local sewing machine market has also been heating up, which has attracted extensive attention from many sewing machine enterprises and professionals in China. However, the sewing machine enterprises have different attitudes towards it.

Let us wait and see whether the Vietnamese sewing machinery market will become the next "India".

"Vietnam ranks among the ten largest textile exporters in the world", "Vietnam's textile and footwear exports exceed US $10 billion", "Vietnam's 2010 textile and clothing exports target is 10 billion to 12 billion dollars", and "Vietnam's clothing exports in 2007 amounted to 7 billion 500 million dollars".

From the summer of 2007 to the beginning of this year, this kind of news related to Vietnam's textile and garment industry appeared frequently in all kinds of media.

Indeed, in recent years, with the further development of Sino Vietnamese bilateral trade relations and Vietnam's textile and garment industry, the "infinite charm" of the Vietnamese sewing machinery industry has attracted the attention of many sewing machinery manufacturers and professionals in China.

Vietnam's market will rise again, making it the hottest international sewing machine market after India.

According to incomplete statistics, in January 2007 -9, Vietnam's textile exports amounted to $5 billion 805 million, an increase of 31% compared with the same period last year. In 2007, Vietnam's textile exports amounted to $7 billion 500 million. In the global textile export ranking, it rose from tenth to sixteenth in 2006, ranking close to Indonesia and the United States after China, the EU, Turkey, India, Mexico, China Hongkong Special Administrative Region and Bangladesh.

Vietnam now ranks among the ten largest textile exporters in the world.

Prior to that, Vietnam textile and Apparel Association announced its textile and garment industry development strategy, that is, Vietnam's textile and garment products export target is 10 billion US dollars to 12 billion US dollars by 2010.

According to the Vietnam textile and Apparel Association, Vietnam's textile and garment exports increased by 20% annually in recent years, and the total export volume of Vietnam's textile and apparel industry reached 5 billion 830 million US dollars in 2006, an increase of 20.5% over 2005.

The United States is Vietnam's largest export market, accounting for 55% of the total exports, followed by the EU market, with an export volume of US $1 billion 243 million, accounting for about 20% of the total exports, and exports to Japan amounted to US $628 million, accounting for about 11% of the total exports.

So far, Vietnam's textile and garment industry has been highly dependent on imports, and 95% of cotton fiber and 70% of other fiber needs must be settled through imports.

In order to achieve the target of US $about 10000000000 in exports, the Vietnam textile and Apparel Association said Vietnam had to increase its national composition to 50%, increase the added value of its products by 50%, and also focus on improving the production capacity of textile materials and establishing fashion centers nationwide.

In its "accelerated development strategy for textile and garment industry in 2001~2010", Vietnam proposed that the government plan to establish textile and garment industrial parks in 11 provinces and cities in Haiphong, North Ning, Xin'an and Taiping in 10 years.

At present, 3 parks in Xin'an, Pingyang and Da Nang have begun to take shape.

Besides, besides the development of textile, clothing and fabric industries, Vietnam's footwear industry has also been developing at a high speed.

According to Vietnam's investment report, in January 2007 -11, Vietnam's textile and footwear exports amounted to 10 billion 580 million US dollars, accounting for 25% of total exports.

Among them, textile exports amounted to US $7 billion 51 million, an increase of 32% over the same period last year, while footwear exports reached US $3 billion 533 million, an increase of 9.5% over the same period last year.

Vietnam's Ministry of planning and investment said that the export performance of the two categories of commodities was very encouraging, not only played an important role in the national economy, but also solved the employment problem of hundreds of thousands of people.

At the same time, the industry also pointed out: "despite the rapid development of Vietnam's garment industry in recent years, problems such as outdated equipment and relatively backward technology have also hindered its further improvement.

In order to produce high-grade, high quality fashion that meets the market demand of the United States, the European Union, Japan and other countries, Vietnam garment industry and other industries must upgrade equipment.

Li Guo, chairman of the Vietnam textile and clothing association (VITAS), has admitted that the backward management and improper use of energy lead to higher production costs. In order to compete with large overseas enterprises, Vietnam's textile and garment industry must begin to use better management techniques and equipment.

To this end, Vietnam clothing and other industries will spend $2 billion 300 million to upgrade equipment to improve the manufacturing process.

However, since Vietnam's local industry (especially sewing machinery manufacturing) is still in its infancy, 90% of machinery and equipment products rely on imports from abroad.

Vietnam's tariffs on imported sewing equipment are relatively lower than those of other Southeast Asian countries, so it can be said that Vietnam has a very wide market for sewing machinery, which is now a good opportunity for China's sewing machinery products to enter the Vietnamese market.

Domestic sewing enterprises have different reactions. With the rapid growth of Vietnamese clothing and the rapid growth of textile exports in recent years, the demand for raw materials and equipment for textile and clothing has also been increasing. This has led to tremendous business opportunities in the local sewing machinery market. Therefore, many foreign sewing machinery manufacturers have been attracted by the Vietnamese market to seek business opportunities in Vietnam.

Japanese companies such as "heavy machinery" and "brothers" set up a representative office or set up a branch office in Vietnam for a long time.

It is understood that many years ago, such as standard stock, leap Group, ZOJE, Jewel Companies and other parts of China's sewing machinery industry backbone enterprises have entered the Vietnamese market.

All kinds of sewing equipment made in China are better suited to the Vietnamese market at present than in other countries in terms of price, quality, service and so on. The brand image of "made in China" can also be accepted by Vietnamese market.

At present, China is the largest supplier of sewing machinery in Vietnam. However, there are different attitudes towards many sewing machinery manufacturers in Vietnam.

Yang Junbin, Secretary General of Tongyu holding group, said: "for the development of the Vietnamese market, domestic sewing machine enterprises generally adopt the traditional way of expansion.

That is to say, every year, we will take part in the professional exhibition of sewing equipment held in Hu Zhiming, Vietnam and so on to enhance the overall image of the company and brand and display new products and technologies. Two, we should establish a cooperative relationship with local distributors, sell products in the local market through dealers' sales channels, three, improve after-sales services, send full-time technical personnel to Vietnam or set up branch offices, send technology and services to customers' homes, and timely conduct various training for Vietnamese customers to enhance brand reputation.

We also take Jewel Companies as an example. As early as 1995, Jewel Companies entered the Vietnam market. Annual sales have been steadily increasing, showing strong growth momentum in recent years.

In 2005, Jewel Companies's sales in Vietnam reached $1 million, while sales growth in 2006 was the highest, reaching more than 100%.

Jewel Companies responsible person said, Jewel Companies in Vietnam market specific development is the sales agent system sales mode.

Since entering the Vietnamese market earlier, Jewel Companies has formed a perfect sales network system in the area. Today, gemstone brand has occupied a considerable market share in Hu Zhiming, and has rapidly promoted to Hanoi, inkstone and other cities.

At the same time, Vietnam's market demand for high-grade products is relatively large. The sales of mechatronics products and double needle machine products of Jewel Companies are very large.

Vietnam has become one of Jewel Companies's most important overseas markets.

Yang Junbin believes that from the perspective of the entire Southeast Asian market, Vietnam's border line is long, adjacent to Laos and Kampuchea, and it can also radiate Southeast Asian countries such as Thailand and Burma.

Vietnam is also the shortest distance to China in the newly emerging Southeast Asian countries.

Therefore, in addition to the attractive domestic market space, Vietnam has become a better trading platform and "pfer station" for the radiation of the whole Southeast Asia market.

At the same time, the sewing machine sales staff also said: "when the domestic market is experiencing a low season, the development of foreign markets such as Vietnam can effectively alleviate the sales pressure of the domestic market for enterprises, especially during the traditional selling season in 2007, the sales potential of the enterprises is much more severe than before, and suffered from the" cold current ", so the role of this" decompression "is even more obvious.

In addition to standards, leaps, jewels, Tongyu and other large backbone sewing equipment enterprises generally optimistic about the Vietnamese market, vigorously develop, and a few of the whole enterprise to Vietnam market "conservative" wait-and-see attitude.

The brand Commissioner of a whole enterprise said, "as a country with the most economic influence in Southeast Asia, Vietnam has been developing steadily since its implementation of" reform and opening up "and its accession to the WTO. Its political and social stability has been maintained, its investment environment has been continuously improved, the local garment industry has been developing continuously, and the potential and development space of sewing machinery market are relatively large. However, in the process of applying for project investment and production and operation, foreign businessmen often encounter some obstacles, such as difficulty in attracting foreign investment policies, cumbersome investment application procedures, long examination and approval period, and variable import tariff policy.

According to the actual situation of our enterprises, we think we should wait and see for some time to act again.