Shortage Of Raw Materials Has Become The Biggest Weakness Of Vietnam'S Textile And Garment Industry.

The biggest weakness of Vietnam's textile and garment industry is the inability to invest raw materials.

When CPTPP and EVFTA come into effect, the textile and garment industry will benefit from entering multiple potential markets, but at the same time, it is faced with the stringent requirements of the rules of origin for free trade agreements. This is a problem for Vietnamese textile and garment enterprises.

According to the report of the Ministry of industry and commerce, the export volume of textile garments reached US $22 billion 560 million in the first 9 months of this year, and the import of raw materials increased by a high growth rate of about 2 billion 410 million US dollars, up 30.3%.

About $9 billion 390 million, an increase of 13.5%; yarn and fiber up to $1 billion 780 million, up 34.6%.

The export volume is high, but raw materials almost still rely on imports. This is the trouble for many textile and garment enterprises to create initiative in production and marketing.

As Chen Guoqing, Vice Minister of industry and commerce, said at the opening ceremony of Bao Ming textile company, the export volume of the Department is expected to reach US $35 billion in 2018, but the headache is that we have yarn and garments, but we have no fabrics.

Especially when the new free trade agreement (EVFTA) and the comprehensive and progressive p Pacific Partnership Agreement (CPTPP) and other new free trade agreements will take effect at the end of December this year, there will be great opportunities for the textile and garment industry.

Once the tax rate is zero, CPTPP will help Vietnam's textile and garment industry expand its market share in some high tariff countries such as Canada, New Zealand and Australia.

However, the two are the most strict rules of origin.

Among them, CPTPP asks for the origin rules of yarn and EVFTA for the origin of fabrics.

This fact has brought many obstacles to Vietnam's textile and garment industry, because yarn, textile, dyeing and finishing is the bottleneck of the industry.

Fan Bisheng, a senior research fellow of the Ministry of industry and commerce, said that in order to develop the clothing capacity of the whole department, 6 billion meters of fabric needed each year.

However, the textile sector has only been able to supply 800 million meters for a long time, and the remaining 5 billion 200 million meters have to rely on imports.

It is worth mentioning that, in the domestic production of 800 million meters, but failed to meet the fabric quality and structure of garment demand, especially the lack of high-quality fabrics to produce specialized orders.

Therefore, in fact, the Department still needs to import nearly 70% garment accessories, and even some enterprises import more than 90% to meet their production needs.

In order to solve this bottleneck, the association has formulated specific plans of action, such as appealed to domestic and foreign investors to invest in a shortage of supply sources.

In the first 8 months of this year, Vietnamese textiles

The total FDI reached an attractive figure, more than 2 billion dollars.

At the same time, the association also called for investment in high value-added products.

Most countries and regions, such as EU Member States, the United States, South Korea, Japan, Thailand and Hongkong, are investing in Vietnam's scarce supply sources, such as the German S dwolle group investing in woolen mill in big city and the embroidery factory project invested by Oman group in Guangnan province.

A Italy group invests in knitted fabrics in Xingan.

Israeli factories are investing in yarn, textile, printing and dyeing in Binhua province.

Not only foreign-funded enterprises, but also domestic enterprises

- organize and invest vigorously in order to make full use of the advantages of the free trade agreements.

Rich international companies invest in 4 technologies for softening process of denim and khaki fabrics.

This station

It can replace 60 workers.

Or the Po Ming textile mill recently opened in Nam Dinh to operate a fully closed and automated production chain to catch up with the various free trade agreements.

Chen Dengxiang, chief executive of Bao Ming, told the factory that the factory produced 600 tons per month.

The 2 million meter woven fabric has the ability to complete 3 million meters.

All production lines of Po Ming are the latest equipment of the world famous factories to make full use of their competitive advantages to all Vietnamese trade partners, including US exports.

It is worth mentioning that the factory is located in the Po Ming Industrial Zone, which is regarded as the leading eco industrial area in the north. It has advanced technology centralized wastewater treatment system, ensuring that all the treated wastewater reaches the first level standard before discharging to the environment, and is observed and managed all weather.

President Wu De Jiang said that he believed that by 2025, it would be able to fill the supply shortage and ensure the sustainable development of the whole sector.