Productivity Cooperation In Textile Industry Has Become The Highlight Of Sino Vietnamese Cooperation.

The ninth Pan Beibu Gulf Economic Cooperation Forum was held in Guangxi on 26 th. The forum provided opportunities for China and ASEAN to further deepen cooperation. In recent years, Vietnam, as an important exporter of textiles and clothing in ASEAN, has made positive achievements in cooperation with China in the textile industry, and has become a highlight of Sino Vietnamese cooperation.

"We invested about 30000000 yuan in this machine and Vietnam's first liquid ammonia mercerizing machine," Wang Libing, head of the Vietnam Industrial Group of China Textile and garment enterprise Sheng Tai Group, pointed to the huge machine that occupied the entire plant.

Liquid ammonia mercerizing is a way to improve fiber function, characteristics and feel. The fabric treated by liquid ammonia is more elastic and glossy. Compared with the lye used in the past, liquid ammonia is not only better, but also more environmentally friendly.

This liquid ammonia mercerizing machine and its matching technology were introduced into Vietnam by Sheng Tai Group. In Wang Libing's view, this is the significance of Sino Vietnamese productivity cooperation: on the one hand, Chinese manufacturing enterprises extend advanced experience and technology to Vietnam to help Vietnam speed up the process of industrialization and urbanization; on the other hand, it will also promote the transformation and upgrading of Chinese manufacturing enterprises and help them participate in global market competition and value chain reconstruction.

In recent years, with the rise of China's production costs and the rise of protectionism in Europe and the United States, the scale of production, quantity of exports and total investment in China's textile industry have declined. More and more Chinese textile enterprises are seeking to build factories overseas, and improve their business efficiency through globalization of procurement, production and sales.

Sheng Tai Group is a member of China's textile enterprises to accelerate the layout of overseas productivity. According to Wang Libing, the group of garment manufacturers entered Vietnam as early as 2009, and later on. industry chain Upstream, a cotton mill was set up in Vietnam in 2012.

After understanding the Vietnamese market, Sheng Tai Group found that the development of Vietnam's textile and garment industry was uneven, the garment production capacity was large and exports to Europe and the United States were large, but upstream fabrics mainly depended on imports, especially from China. In view of this, Sheng Tai Group started construction of fabric factory in Vietnam in 2012 and put into operation in June 2014. Wang Libing said that this is Vietnam's first large-scale yarn dyed fabric factory.

Turning to the reasons for investment in Vietnam, Wang Libing said that in addition to the advantages of labor costs, Sheng Tai Group's main advantage is Vietnam's location advantage. Vietnam joined at the end of 2006. World Trade Organization (WTO), and also a member of China ASEAN Free Trade Area. Vietnam also sought to sign free trade agreements with the European Union and Japan and joined the trans Pacific Partnership Agreement (TPP) negotiations.

At present, Vietnam has attracted textile enterprises from China, Korea, Japan and France. The export volume of foreign-funded enterprises accounts for about 60% of Vietnam's annual textile and clothing exports. China's leading textile enterprises, such as Tianhong, Bailong East and Shenzhou International, have invested and built factories in Vietnam, and even built textile industrial parks.

Sheng Tai has developed rapidly after entering Vietnam. At present, it has set up factories in several industrial parks in Vietnam, Nam Dinh, Xingan and Beijiang provinces. The factory covers an area of nearly 450 thousand square meters and employs 12000 workers, forming a vertically integrated integrated industrial chain from cotton spinning to fabric to clothing.

Speaking of the future, Wang Li Bing The group considered further improving the industrial chain in Vietnam, such as excipient production, which is not only a useful supplement to the main industry, but also a mode of production strongly advocated and supported by the Vietnamese government.

Excipient production includes buttons, trademarks, packaging materials production and a series of industries. Wang Libing, for example, said that because Vietnam did not have a complete excipient industry, Sheng Tai needed to purchase the laundry label from China. Many customers in the clothing industry now demand quick response. However, after washing the water mark in China, it will take three or four days to transport to Vietnam by air, plus customs clearance process, not only fast enough, but also high cost.

The development of Sino Vietnamese textile industry capacity cooperation is inextricably linked to Pan Beibu Gulf economic cooperation, and Pan Beibu Gulf economic cooperation is also an important part of building "one belt and one road". Wang Libing said that one of the important contents of the "one belt road initiative" and Vietnam's "two corridors and one circle" plan is the interconnection and interconnection. If the highway and railway between China and Vietnam are connected, the supply of textile parts will be more convenient, which is a great advantage for enterprises.

Sheng Tai's first garment factory in Vietnam is located in Nam Dinh province. Reporters saw here that there were more than 700 workers in a workshop. According to production manager Ma Lan, the workshop can produce 30 thousand garments each day, and the workshop management team is very internationalized, with members from Philippines, Sri Lanka, Singapore, Malaysia, China, Peru and other countries.

Wang Libing said that the rapid development of Sheng Tai in Vietnam has benefited from the accurate judgement of the group's top managers and the full support of the local industry association of Vietnam. "During the preliminary investigation, we got a lot of help from the Vietnam textile and Apparel Association. They provided many geographic sites for us to compare, and also introduced to us the trend of the Vietnamese textile market and the five year development plan."

Wang Libing also mentioned some difficulties encountered in setting up factories. He said: "Vietnam is short of fabric factories because it does not rely on equipment driven by cotton mills, nor is it labor intensive as it is in garment factories. It is a combination of both high-end equipment and skilled workers, as well as know-how and management skills." Vietnam also has much room for improvement in textile equipment and spare parts supply and after sales service.