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    Global Economy: Vietnam Prime Minister'S Development Strategy For Textile And Clothing Industry In 2030 And Vision For 2035

    2023/5/30 18:18:00 0

    Vietnam?


    Based on the goal of stable development of the textile and clothing industry, and in line with global economic integration, the overall industrial development process from 2021 to 2030 and after 2030, the Prime Minister of Vietnam issued resolution 1643/QD TTg on December 29, 2022, approving the 2030 Development Strategy/2035 Vision of Vietnam's Textile and Clothing Industry.

    Textile and clothing are industries with high export value and growth rate in Vietnam, and are also one of the export industries that make important contributions to the economic growth of the country, accounting for 12-16% of Vietnam's total exports. In 2022, although the global economy fluctuates greatly and the growth rate of textile and clothing exports decreases significantly in the fourth quarter, Vietnam's textile and clothing exports will still amount to US $44.4 billion, up 9.7% from 2021. Thanks to the efforts of Vietnamese enterprises, the government, institutions, departments, customers and partners fully support the achievements; In particular, local employees always work with the enterprise to overcome difficulties and challenges to achieve the goal of sustainable development.

    The overall goal of this strategy is to develop the textile and footwear industry as the main driving force of the country's economy, accelerate the production of high-quality products with international competitiveness, meet the needs of Vietnam's domestic market, and maintain the status of a major producer and exporter of textile, leather and footwear products in the world. By 2035, Vietnam's textile, clothing and footwear industries will develop effectively and sustainably in accordance with the circular economy model; Improve Vietnam's domestic production value chain and effectively participate in the global supply chain; Cultivate regional and world-class brands.

    Specifically, from 2021 to 2030, the annual growth rate of textile and clothing exports is estimated to reach 6.8-7.2%, of which from 2021 to 2025, it is estimated to reach 7.5-8.0%. In 2025, Vietnam will strive to export US $50-52 billion; It will reach US $680-70 billion in 2030. From 2021 to 2025, the localization rate of textile and clothing industry will reach 51-55%, and from 2026 to 2030, it will reach 56-60%. In addition, the industry should also be developed towards specialization and modernization; Accelerate the shift from OEM to higher productivity mode.

    Solution to the problem of lack of raw materials

    Vietnam's textile and clothing industry is one of the industries with high dependence on the import of raw materials from other countries. At present, Vietnam's domestic production capacity only meets 25% of the fabric demand, and cotton products are still heavily dependent on imports; If the global supply chain is interrupted, Vietnam's textile and clothing industry will fall into the predicament of raw material shortage. On the other hand, if an enterprise does not comply with the rules of origin, it will not be able to enjoy the tariff preferences of the Free Trade Agreement. In order to solve this issue, the development strategy of the domestic industry should promote the investment in the production of raw and auxiliary materials and supporting industries; Focus on the production of general fabrics and composite fabrics, encourage the use of domestic yarns to produce fabrics, reduce dependence on imports, and actively increase industrial links to form a complete industrial supply chain and value chain. The specific measures for the textile industry (including fiber, yarn, weaving, dyeing and finishing) are to develop synthetic fiber, functional fiber, new environment-friendly raw materials, and produce high output and high-quality yarn to meet the domestic demand of the country and gradually reduce the dependence on imports. Invest heavily in the development of knitted, woven and functional fabrics. Build specialized industrial parks and large-scale specialized comprehensive parks for textile, clothing, leather and footwear industries (including yarn chain, textile printing and dyeing, post finishing cloth and tanning); Give priority to large investment projects with good reputation, use advanced and modern technology, adopt synchronous and closed production processes, and ensure compliance with environmental regulations.

    Focus on industrial parks

    In order to link the industrial chain to achieve the highest production efficiency, the strategy also explicitly mentions that it is necessary to attract foreign capital to "designated" northern regions (Nanding, Xing'an, Taiping, etc.), central regions (Qinghua, Yi'an, Shunhua, Guangyi, Pingding, etc.), and southern regions (Pingfu, Xining, Long'an, etc.) to invest in professional industrial parks and professional comprehensive parks.

    At the same time, guide the development of supporting industries and raw and auxiliary material production projects in the above industry intensive areas to reduce transportation costs and other costs, and enhance product competitiveness; This will help to solve the difficulties in attracting investment and supply shortage of local textile printing and dyeing projects. On the other hand, enterprises still need to invest in new machines, equipment and technologies to improve productivity and product quality, reduce energy consumption, and reduce wastewater and greenhouse gas emissions; Increase the recycling of raw materials, fuels and wastes; Give priority to creating high added value through intelligent, automated and environmentally friendly production processes.

    Improve localization ratio and create Vietnamese fashion brand

    The strategy clarifies the development direction of the textile and fashion industry, and promotes and creates manufacturing, product design and R&D, as well as cohesion and coordination between businesses, so as to position and create fashion trends for the domestic market of Vietnam; Create product brands and national brands.

    Develop fashion centers in Ho Chi Minh City and Hanoi City, and combine marketing and communication strategies to promote the development of textile fashion; According to the global trend of green and convenient products, provide fashionable textile products to meet the needs of domestic and foreign tourists. Formulate plans to develop Vietnamese textile, leather and footwear brands, and introduce Vietnamese brands into the global retail chain; Improve design ability, brand and competitiveness; Study how to own foreign famous brands.

    To achieve the overall goal and direction, the strategy provides 7 key solutions

    1. Market development: promote and diversify trade activities, provide regular, complete, accurate and timely market information, and support enterprise diversification and market expansion. Promote and buy Vietnamese textile and footwear products through entertainment activities, cultural and social platforms such as drama, music and fashion. Improve enterprises' awareness of the impact of free trade agreements, provide advisory services on international trade law, and focus on rules of origin and trade remedies. Formulate and implement policies to protect consumers and Vietnam's domestic market. Enterprises should also invest in and improve their marketing capabilities, actively monitor market trends to reach customers; Be committed to developing product standards that are in line with international standards; Strengthen the digital transformation of management and production; Actively participate in domestic and international exhibitions.

    2. Attracting investment and developing Vietnam's domestic value chain: Vietnam's national management institutions improve and invest in relevant legal systems, mechanisms and policies to ensure compliance with international commitments and practices on the premise of openness and attractiveness; In particular, we should introduce investment projects that are currently in short supply. Implement plans that allow domestic and foreign enterprises to share and transfer technology, management and production experience. Establish a database system to share information on industrial raw and auxiliary materials for enterprises to provide timely supply of goods; Establish raw and auxiliary materials exchanges for textile, clothing, shoes and hats industries to help enterprises reduce transaction costs and improve production and operation efficiency.

    3. Development and production of raw and auxiliary materials: encourage investment and production of functional fibers, new environment-friendly raw materials, high cost, high-quality yarns, and textile production, dyeing and finishing and supporting industries. Establish a mechanism to provide financial support for wastewater and waste treatment projects in the planned professional industrial zones and industrial tribes.

    4. Management organization: Vietnam's national management organization formulates and implements policies to support enterprises and investors according to the established strategic direction. The Industry Association will continue to put forward suggestions on industrial development policies to Vietnam's Ministry of Industry and Trade and relevant ministries and commissions to protect the rights and interests of enterprises and consumers; Implement the goal plan of sustainable development of textile industry.

    5. Improve the quality of human resources: strengthen the training of human resources in the production of textile raw and auxiliary materials, especially the talent training in the dyeing and finishing, finishing and design stages, and the ability training in production management, value chain management and customer management of textile enterprises; Increase the application of new technologies to improve production efficiency and quality.

    6. Scientific and technological innovation and sustainable development, developing green textile, clothing, shoes and hats industries: formulating and promulgating mechanisms and policies to encourage the sharing of science and technology, high-end technology and clean technology into Vietnam; Encourage enterprises to invest in new machinery, equipment and technology; Formulate technology application policies that can promote Industry 4.0 (including 3D printing, new materials, automation, robotics, digitization, etc.). The application must adopt advanced technology based on information technology and artificial intelligence; Organize training courses, deliver information and improve the enterprise's ability to control environmental issues; Research and formulate relevant traceable and transparent value chain policies, and comply with international standards.

    7. Financial mechanism, taxes and sources of funds: formulate industrial investment, credit and tax policies; Support policies for vocational training in spinning, weaving, dyeing and finishing.


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