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    How Does Vietnam, A Textile Raw Material Shortage, Become A Major Exporter Of Textile Products?

    2019/2/25 12:19:00 38

    VietnamTextilesExportsInternational Observation

    As we all know, Vietnam, as a country with a shortage of textile raw materials, is one of the major textile giants.

    Why can we attract the major textile enterprises to develop their production bases on the mainland, and China, a big textile country, why do big textile heroes come to Vietnam to open up textile territory?


    Vietnam's textile industry does not take advantage of China.

    Whether in textile technology or raw material production, the technical difficulty coefficient of special yarn and differential yarn is far higher than that of pure cotton in China. In terms of textile raw materials, China's cotton output as a big country in 2018 reached 5 million 111 thousand tons in Xinjiang.

    However, in China, with the improvement of the numerical industry, cotton demand and market digestibility increase, and labor and production costs continue to increase. Some large textile enterprises begin to shift the focus of the production plant to the Southeast Asian countries with lower labor costs and production costs, so Vietnam has a sharp edge.

    According to the data provided by the Vietnam cotton yarn Association, the total import volume of Vietnam's cotton in 2018 was 1 million 568 thousand tons, and its value was 3 billion 11 million US dollars, up 21% and 27.5% respectively over the same period last year.

    In 2018, Vietnam imported 1 million 34 thousand and 800 tons of cotton yarn and its value was 2 billion 419 million US dollars, up 17.8% and 32.8% respectively over the same period last year.

    Yarn exports amounted to 1 million 478 thousand and 600 tons, and exports amounted to US $4 billion 25 million, representing an increase of 9.6% and 12% respectively over the same period last year.

    (source: China textile daily)

    Vietnam's cotton imports have increased steadily in recent years. With the gradual shift of the focus of China's textile industry, Vietnam's textile production has also increased.

    And Vietnam's largest textile enterprise, China, is here to invest in Tianhong Textile Group, which is pformed from a cotton yarn producer into an industrial chain integrated textile enterprise.

    If the whole industry chain strategy is successful, Tianhong textile will become one of the most competitive textile and apparel suppliers in the world, and its textile industrial park will easily seize the order of textile and apparel in mainland China and lay a long-term competitive advantage.

    The comprehensive and progressive p Pacific Partnership Agreement (CPTPP, ComprehensiveProgressiveTrans-PacificPartnership) came into force in Vietnam in January 14, 2019.

    The impact of CPTPP on Vietnam's economy depends largely on Vietnam's ability to seize opportunities and overcome challenges.

    CPTPP phased out 98% of tariffs on agricultural and industrial products, relaxed investment regulations and strengthened protection of intellectual property rights.

    Joining the CPTPP brings Vietnam an unprecedented market, "Vietnam makes" or becomes the biggest winner.

    (source: China cotton net)

    Vietnam is a "new star country" in the textile industry. The control of raw material import and the process of downstream fabric production are not very mature.

    But in recent years, the development is more and more rapid, and how attractive the cheap labor force is to the market.

    But national policy guidance is more important, and actively learning textile technology to stabilize its development.

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