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    Vietnam's Textile And Garment Industry Takes Advantage Of Its Own Advantages To Seize The Opportunity Of Warming Up The External Market.

    2013/3/23 18:32:00 22

    Apparel AssociationClothing ExportTextile And Garment Market Demand

    Nowadays, Vietnam's development opportunities of a > textile and apparel /a are gradually appearing in the process of global industrial transfer. More and more international investors regard Vietnam as a long-term stable target market, which has created a platform for the development of the local textile and garment industry, and at the same time has benefited individual individuals. In order to further expand the industry, the Vietnamese textile and Garment Association (Vitas) proposed new development plans at the end of last year, one of which was to become the top three players in the world before 2020. However, since 2013, the constraints of Vietnam's textile industry have been increasingly prominent: lack of raw materials, restrictions on industrial growth, upgrading of production factors, higher cost and intensified competition among neighboring industries. Can Vietnam's textile and garment industry take advantage of its own advantages and seize the opportunity of the external market to realize the dream of three strong exports?
    < p > < strong > foundation and superiority < /strong > < /p >
    < p > < strong > stimulating foreign exchange leading industries, export market is diversified. < /strong > < /p >
    < p > despite the low external market performance, Vietnam's a href= "http://www.91se91.com/news/index_s.asp" > textile industry < /a > maintained high speed and steady growth in 2012, and continues to be the leading export industry in the country. Vietnam's textile and clothing and yarn exports totaled $17 billion 200 million in 2012, up 8.5% from the same period last year, according to Vietnam's Statistics Bureau. Exports of textiles and clothing were US $15 billion 800 million, an increase of 12%. < /p >
    P Vietnam Vietnam textile and clothing association (Vitas) said Vietnam has been the world's ten largest exporter of textiles and clothing, and the textile industry is also a major industry in Vietnam's export earnings, making an important contribution to increasing national revenue. In Vietnam, the textile industry provides employment opportunities for 2 million 200 thousand people across the country, and the average monthly income of employees is nearly 5 million. Thanks to the specialization and modernization of production equipment and the influx of foreign investors, the textile and garment industry has become the largest economic sector in Vietnam. There are 4000 enterprises, with an annual turnover of US $20 billion, equivalent to 15% of Vietnam's GDP. < /p >
    < p > from the export market, Vietnam's textile and clothing has been spread all over the world in 180 countries and regions, including the United States, Europe, Japan and Korea. Among them, the United States is Vietnam's largest export market for textiles and clothing. In the first 11 months of 2012, Vietnam exported US $6 billion 800 million of textiles and clothing to the United States, accounting for 49.5% of the total exports of the same period, and exported 1 billion 790 million US dollars to Japan, an increase of 16.8% over the same period last year. It is worth noting that in recent two years, South Korea has become an emerging market for textile and clothing exports in Vietnam, driven by favorable factors in the South Korea ASEAN FTA agreement. In the first 11 months of 2012, Vietnam's exports to Korea amounted to US $1 billion, an increase of 20.9% over the same period last year. < /p >
    < p > < strong > difficulties and challenges < /strong > < /p >
    < p > < strong > the supply of raw and auxiliary materials is difficult and the cost of production continues to rise. < /strong > < /p >
    Although Vietnam's textile and garment industry has made certain achievements, but if we want to join the top three global export markets and squeeze out Bangladesh and geopolitical Turkey, which is good at knitted garments, Vietnam's textile and garment industry must solve long-standing problems, of which raw material shortage is the most intractable. According to Vitas statistics, Vietnam's textile and clothing imports amounted to nearly US $11 billion in 2012, and the trade surplus was only about US $4 billion 90 million. The extremely unbalanced development of the upstream and downstream industries restricts the industry to form a complete supply chain system. < /p >
    < p > it is understood that Vietnam's domestic raw materials production can only meet the textile industry's 30% production needs, so the industry's trade surplus is difficult to improve. Taking fabric imports as an example, Vietnam's clothing export processing industry needs 6 billion 800 million meters of fabric every year, and its domestic output is only 800 million meters, and is mainly a href= "http://www.91se91.com/news/index_p.asp" > fabric > /a. Most of the middle and high grade fabrics still rely on imports. Although the industry's self productivity increased by 3~5 percentage points per year, it reached 49% in 2012, but still far below the 90% in India and 95% in China. From the perspective of development, such a supply and demand mode will lead to two situations: the grade of textile and clothing products produced in Vietnam is difficult to upgrade; a large number of imported raw materials and foreign materials will boost production costs. There is no doubt that these two modes of production are not conducive to Vietnam's advance towards a textile power. < /p >
    Since P entered the 2013, there has been a headache for Vietnamese investors and an increase in production inputs. The production expenses of enterprises, such as gas, oil, electricity, social insurance and medical insurance, have a great impact on the operation of enterprises. In addition, although textile enterprises have begun to pay attention to quality management such as labor productivity, local productivity is only equivalent to 1/4 in China and 1/8 in Korea, which has a great impact on product market competitiveness. There are signs that the Vietnamese investors have begun transferring orders to countries such as Kampuchea and Burma because of increased investment and Vietnam no longer enjoying MFN treatment. < /p >
    < p > < strong > opportunities and grasps < /strong > /p >
    < p > < strong > export orders stabilized and recovered < /strong > < /p >
    < p > < strong > TPP agreement moves forward < /strong > /p >
    < p > to Vietnam's textile and garment industry, the current warming of the external market has become an accelerator for industrial capacity upgrading. Vietnamese clothing companies generally said that the orders received this year were good compared with last year, most of which came from the United States and Japan. Fan Chunhong, vice president of Vitas, said that 90% of Vietnamese clothing companies had received production orders at the end of July 2013, and 50% of enterprises received enough orders to the end of the year. In view of the increasing orders, most Vietnamese enterprises, especially large and brand enterprises, are actively recruiting workers in order to prevent the shortage of labor force. < /p >
    < p > Vietnam textile industry's future development opportunities are also closely related to the trans Pacific Partnership free trade agreement (TPP). Li Guoan, a senior consultant at Vitas, said that according to the current growth rate, Vietnam's exports to the United States and textiles and clothing will reach US $13 billion by 2020. However, with the implementation of the trans Pacific Partnership Agreement (TPP), the export volume to 2020 will probably reach US $22 billion. "If Vietnam can seize the opportunities brought by the trans Pacific Partnership Agreement, it will not be an illusion." < /p >
    < p > in fact, in Vietnam's textile and garment industry, TPP is considered not only to bring economic benefits, but also to bring social benefits. Li Guoan said that if Vietnam could export $22 billion of its products in 2020, it would mean millions of new jobs. On this basis, Vietnamese textile industry may be able to move towards the goal of the three strong exports. < /p >
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