All Sectors Of Vietnam Are Striving To Improve Investment Environment And Attract Foreign Companies To Come In.

In China textile On the occasion of the "2012 international textile and garment industry exchange" sponsored by the import and Export Chamber of Commerce, Pei Hui, a commercial counselor of the Vietnam Embassy in China, fully interpreted the investment situation of Vietnam's textile industry, he said. Vietnam? All sectors are trying to improve the investment environment and attract foreign enterprises to come in. He hopes that the textile enterprises in China and Vietnam can work together in the fields of producing fabrics, fabrics, textile raw materials, printing and dyeing, and jointly promote the in-depth cooperation between the two industries.

　　 Fair business policy to enhance investment attraction

For textile and garment enterprises that are planning to "go out", it is a measure of a country. Investment situation Labor costs and trade preferences are not only so simple. In fact, any investor should first consider whether the target country has preferential policies for attracting investment, whether the law is sound and whether the interests of the operators can be guaranteed. In other words, the openness and fairness of the market determine the attractiveness of investors.

According to statistics, since Vietnam joined the World Trade Organization in 2007, its textile industry has absorbed nearly 500 foreign direct investment (FDI) projects, with a total registered investment of 2 billion US dollars. In Pei Huihuang's view, fair trade and business environment are the key to attracting investment in Vietnam. He said that since July 1, 2006, the Vietnamese government began to implement the Vietnamese enterprise law and the Vietnamese investment law. In the implementation of these two laws and regulations, there is no differential treatment between foreign investors and local enterprises in Vietnam. In addition, the Vietnamese government will implement the same laws and regulations in the registration process and project approval process in accordance with the commitments made in the WTO Accession (WTO). There are no significant differences in preferential tariff preferences enjoyed by foreign enterprises and Vietnamese enterprises in areas such as national defense, energy security and other legal restrictions.

According to Pei Huihuang, the Vietnamese government also issued special preferential policies for investment in the textile and garment industry. "According to the agreement of the Vietnamese 108/ND-CP government, the textile industry has been listed as an investment area offered by the Vietnamese government for preferential treatment. It has invested in the production of machinery and equipment in the textile, garment and leather industries, weaving and processing textile finished products, and producing silk and fiber yarns, leather and leather processing and processing, all enjoying preferential treatment."

When it comes to the form of investment in Vietnam, Pei Huihuang said: "the specific form of investment is determined by foreign investors, but we suggest that investors should establish foreign investment enterprises (including wholly foreign-owned enterprises and joint ventures) or permanent representative offices of foreign enterprises in Vietnam in Vietnam. If we want to set up factories in Vietnam, we should adopt the form of direct investment, no matter whether the products are sold or exported in Vietnam. If we only hope to strengthen the promotion activities such as trade promotion between enterprises and Vietnam, investors may consider establishing representative offices in Vietnam, but they do not have the right to produce, import and export, and directly sell products.

　 Mature market environment contains opportunities for development

In recent years, Vietnam's textile and garment industry has developed rapidly. In 2007~2012, Vietnam's textile and garment exports grew by an average annual growth rate of 22%. At present, Vietnam has become one of the competitive countries in the global textile industry. Pei Huihuang believes that besides the increasingly perfect management and investment environment, Vietnam's textile and garment industry's competitive advantage is still in the high quality labor force and highly liberalized trade atmosphere.

"If only from the price of labor, Vietnam is not the most advantageous among Southeast Asian countries, but Vietnamese textile and garment workers are ingenious and able to undertake higher order clothing orders, which can meet the needs of foreign businessmen from different levels. In addition, Vietnamese textile workers are highly efficient and can fulfill large orders in a relatively short time. This is also in line with the trend of fast fashion in garment industry. Pei Huihuang said.

In the development of Vietnam's textile and garment industry, the accession to the WTO has played a decisive role in promoting the development of Vietnam's textile and garment industry. Among them, the biggest advantage is the abolition of quota restrictions on exports to the United States. When competing with other countries, Vietnamese textile producers are on equal footing. With the opening of the investment environment, foreign investment in Vietnam's textile and garment industry has increased, the industrial infrastructure has been upgraded, and the scale of production has further expanded. According to Pei Huihuang, after joining the WTO, Vietnam's textile exports have been showing steady growth. Except for a slight drop in the financial crisis in 2009, Vietnam's textile and clothing exports rapidly increased from less than 8 billion US dollars in 2007 to US $16 billion in 2011. From the export market, the US growth was particularly rapid, with exports to US $4 billion 400 million in 2007 and US $6 billion 800 million in 2011. Exports to the European market increased from US $1 billion 500 million in 2007 to US $2 billion 500 million in 2011.

After becoming a member of the WTO, Vietnam has also participated in several multilateral and bilateral trade agreements, including the ASEAN Free Trade Area (AFTA), the China ASEAN Free Trade Area (ACFTA), Australia, New Zealand - ASEAN Free Trade Area and the Korea ASEAN Free Trade Area (AKFTA). "TPP is now a trade agreement we value. Once the agreement is reached, Member States will first expect their member Fang Xianghu to enjoy the reduction and exemption treatment in the field of import tariffs, thereby increasing the price competitive advantage of their products compared with non TPP members. We will be able to enjoy more direct tariff preferences for textiles and garments exported to the United States. " Pei Huihuang said.

The United States is considered to be one of the most important textile consumers in the world, with an annual order of about 100 billion dollars. At the same time, the United States is also Vietnam's main export market for textiles and clothing. Analysts have pointed out that TPP will create more opportunities for Vietnamese textile and clothing to enter the US market.

　 Leveraging the advantages of foreign capital to break through the bottleneck of industry

Despite the increasing export performance of Vietnam's textile and garment industry, the unavoidable problem is that the overall supply chain system of the industry is still fragile. The heavy dependence on imported raw materials has become a stumbling block to the Vietnamese textile and garment industry.

Deng Fangrong, vice president of the Vietnam textile and Garment Association (Vitas), said that only 10% of Vietnam's textile and garment industry was purchased domestically. At present, Vietnam consumes about 400 thousand tons of cotton per year, but only 3000 tons (0.75%) are domestic supply, the rest need to import. The domestic demand of artificial silk is 400 thousand tons / year, and domestic supply can only supply 120 thousand tons (30%). Most of the machines, chemicals and dyes used in the industry are imported, resulting in inefficient supply chains.

Pei Huihuang pointed out that the difficulties encountered by Vietnamese textile industry have created opportunities for foreign investors, especially Chinese enterprises. In recent two years, Vietnam has stepped up its procurement of upstream textiles because of its export promotion. Take imports from China as an example. In 2011, Vietnam imported cotton cloth to US $2 billion 800 million, and yarn imports amounted to US $300 million. In order to improve this situation, the Vietnamese government not only promotes local enterprises to invest more in textile raw materials, but also attracts foreign investors to invest in Vietnam or joint ventures to produce fabrics and raw materials for thousands of garment export enterprises in Vietnam.

"Chinese enterprises have the advantage of technology and experience in the production of these products, and we hope to deepen their cooperation with them. It needs to be pointed out that the textile and textile raw materials production and printing and dyeing technology of Vietnamese textile enterprises need to be improved. Therefore, the Vietnamese government is now very encouraging foreign investors to cooperate with local enterprises in this area, hoping to learn from foreign investors' high and new technology to produce cotton and cotton accessories, while reducing environmental pollution. It not only provides raw materials for Vietnamese textile enterprises, but also supplies them to neighboring Southeast Asian countries. Pei Huihuang said.