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    China'S Textile Opportunities Outweigh Challenges In Vietnam'S Textile Market.

    2019/6/10 16:05:00 24

    VietnamTextile Market

    In recent years, Vietnam has welcomed the new opportunities brought about by the FTA, covering the entire textile industry chain, and continuously absorbing large amounts of investment from home and abroad, which has played an important role in promoting Vietnam's economic development.

    On 2018, Li Jinchang, general manager of Vietnam textile and Garment Group, said at a press conference: Vietnam's textile and clothing exports amounted to US $3 billion 600 million, up 16% over the same period last year.

    This shows that Vietnam's textile and garment industry has not only increased in quantity but also in quality.

    In the fierce competition and rising cost of textile industry in China, the cost advantages of Vietnam, India and other countries are gradually revealed. More and more equipment and materials manufacturers choose to "go out", and the global textile industry has shifted to South Asia and Southeast Asia.

    Under this trend, China's textile industry will inevitably face new challenges.

    Source: textile printing industry micro station

    Vietnam Textile Industry Overview

    1, the overall market environment

    The textile industry is an important economic industry in Vietnam, playing an important role in creating employment and contributing to exports. Vietnam's 20% of the industry's jobs are created by the industry.

    Today, Vietnam's textile and garment market has great potential. With the entry into force of the comprehensive and progressive p Pacific Partnership Agreement (CPTPP) in Vietnam, Vietnam's economy will grow by 1.3% and trade export growth by 4%.

    Textile and clothing, as one of the most important industries in the economy, is also the biggest beneficiary of CPTPP.

    The entry into force of the agreement will substantially reduce tariffs, promote diversification of export commodities and markets, and Vietnam's textile industry will develop better and faster.

      

    In addition, Vietnam is now in the "demographic dividend" period with an average age of only 29.

    This has greatly increased the quantity and quality of the labor market in the textile and garment industry, and has injected momentum into the rapid development of the textile and garment enterprises.

    It can be said that thanks to these new FTA agreements, the potential of Vietnam's textile and garment market is unlimited, and is developing rapidly.

      

    2. Considerable export orders.

    Vietnam is recognized as the third largest exporter of clothing in the world, and textiles are one of Vietnam's key export products.

    Vietnam's textile and clothing exports are mainly exported to the United States, Europe, Japan and South Korea.

    As foreign investment continues to enter Vietnam's market in recent years, Vietnam's textile and garment enterprises have considerable orders.

    Vietnam's Shun Chi printing factory entered the Vietnamese market in 2006 and has a history of more than ten years in the Vietnamese market. It has experienced a difficult exploration from the initial market to a certain position in the industry today.

    Yang, who is in charge, said: "the export orders we are receiving now are increasing day by day, and the monthly volume will be completed by 100 copies, with 5000 volumes per day."

    Guo Guang, the famous international brand printing and processing World International Development Co., Ltd., said: "just a brand, we receive nearly 5 million orders."

    Thus, Vietnam's export orders are considerable, and the profits it brings are enormous.

    According to the situation, this number will continue to rise.

      

    Manual instead of machine becomes an inevitable trend.

    With the increasing number of garment factories and the continuous increase of orders, it is necessary for Vietnamese textile and garment industry to reduce production costs and produce more efficient printing machines.

    In addition, digital printing has become a market trend because of its good printing effect.

    According to the general manager of Shun Chi printing factory, according to the trend of the market, the machine matching is necessary in the future, and the development of manual + machine will be carried out.

    As for the flag printing plant, Yang always disclosed that the company is planning to add machines. The elliptical machine plus digital and direct injection machines is an idea in the future.

    At the same time, Shi Yu, manager of Shi Yu, also said that many printing patterns were too complex. The printing of machines was not only fast, but also brighter and better.

    It can be seen that manual substitution of machine will become an inevitable trend of textile and garment industry.

      

    The traditional manual plate printing will produce pollution when cleaning. Under the strict environmental protection policy of Vietnam textile industry, in order to improve the processing capacity of environmental protection technology and adopt a low energy consumption and low pollution production mode, the digital printing equipment that can save energy and reduce emissions has become the first choice for enterprises. This is also an important factor to promote manual replacement of machines.

    To the production, such as Shun Xin, Bi Hong and so on.

    More and more enterprises have indicated that they will be more inclined to choose famous brands in China. They think that the printing equipment in China has both quality and price advantages, and the equipment performance is stable and cost-effective.

    Thanks to the excellent geographical location, the maintenance and after-sale work of the machine can also be put in place timely, and the service is very perfect.

    Therefore, they gave a very high impression of Chinese printing equipment.

    "In the past, we would not consider domestic machines very much, but in recent years, domestic equipment has met our requirements, such as printing speed, printing effect, and more importantly, stability."

    Domestic textile faces challenges

    Vietnam's textile and garment market has great potential.

    According to WTO data, the export share of China's textile and apparel international market still ranks first in the world, but it has declined since 2016.

    By contrast, the share of textiles and clothing exports in India, Vietnam and Bangladesh increased.

    Vietnam increased rapidly, and Vietnam's share of exports in 2017 was 4.6%. From 2010 to 2017, Vietnam's exports of textiles and clothing grew at an average annual rate of 17.4%, while China's average annual growth rate was only 4.4%.

    Thanks to the new trade agreement, Vietnam's textile market will also gain greater business opportunities and achieve better development.

    Faced with the severe challenges posed by Vietnam, where should the traditional advantages of China's textile and clothing industry go?

    We believe that China's textile and garment industry must face up to the trend of the rapid development of the Vietnamese market, carry out the upgrading and pformation from "big" to "strong", and move towards the middle and high-end technology innovation, so as to improve the capability of independent innovation.

      

    At the same time, faced with the severe challenges posed by the Vietnamese market, there is no need to be pessimistic.

    Although China and these countries are competing in the international export market, they also form a close cooperative relationship in the development of the industrial chain.

    On the one hand, due to the limited bearing capacity of China's resources and environment, the rising production costs and the need for accelerating the internationalization of domestic enterprises, in recent years, some Chinese enterprises have invested in the construction of a number of spinning and garment processing bases in Southeast Asia and South Asia, and have formed an industrial chain supporting cooperative relationship with the upstream and downstream enterprises. "China Southeast Asia" has gradually become a new international layout mode of China's textile manufacturing industry.

    On the other hand, the industrial system of these countries is still not perfect, especially the links such as fabric, dyeing, finishing and equipment are weak. It is necessary to import large quantities of surface accessories and textile equipment from China, which is an important growth force to stimulate China's textile and textile machinery exports.

    Therefore, the new FTA agreement, the domestic market should seize the opportunity to take advantage of the trend and follow the trend.

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