The textile and apparel industry is a key pillar of Vietnam's economy, employing 1.05 million workers (about 250,000 people in the textile manufacturing segment and 800,000 people in apparel making) in over 2,000 plants across the country.
The first group of textile and apparel manufacturing units were built to fulfill domestic demand under the control of the previous Ministry of Trade and Ministry of Industry (now the Ministry of Industry and Trade). The growing number of factories later led to the emergence of the Vietnam National Textile and Garment Corporation (VINATEX) established in 1995, which plays a significant role in regulating, supporting, and maintaining these enterprises (currently close to 100 sub-companies).
Three main associations
In 1999, the VINATEX obtained an official approval to establish the country's first association for the industry named Vietnam Textile and Apparel Association (VITAS), which is a non-governmental and non-profit organization representing the interests of all textile and apparel firms, including the state-owned enterprises, private and foreign-invested firms on a voluntary basis. The VITAS is responsible for reporting to and consulting the government for development of the textile and apparel industry. So far, the VITAS has been supporting well the government in nurturing and monitoring long-term development of the industry, especially after Vietnam joined the World Trade Organization (WTO) in 2006.
The VITAS also acts as a platform for its members to discuss the interests concerning the industry as well as serves as a bridge between domestic textile and garment enterprises and the outside world.
In addition, two associations were set up in Vietnam.
Established in 1993, the Ho Chi Minh city Association of Garment Textile Embroidery-Knitting (AGTEK) is an association serving for the textile and apparel makers in Ho Chi Minh city and the surrounding provinces such as Binh Duong, Dong Nai and Ba Ria – Vung Tau. On the other hand, the VSA is a group of spinning manufacturers nationwide. Most members of these two associations are also members of the VITAS.
The Vietnam Spinning Association (VSA) was the youngest association of the textile and apparel industry in the country since 2007, established as a result of the need to promote sustainable development of the textile and garment industry through nurturing the domestic manufacture of fibers, yarns and related products.
According to a report recently released by the Vietnamese Ministry of Industry and Trade, the VITAS is the biggest and most successful association of Vietnam because it has supported effectively the development of the textile and apparel industry.
Latest efforts of VITAS
With Vietnam among the top ten of textile and garment exporters in the world and the accession of the World Trade Organization (WTO) in 2006, the VITAS has been acting actively to help the industry further integrate into the international textile trade. It assists the Vietnamese government in supporting sustainable development of the country's textile and apparel industry, helps keep the industry compatible with the WTO rules and regulations, and prevents fraudulence in imports and exports of textile and apparel goods.
The VITAS recently provided support to the Ministry of Industry and Trade in preparing a master plan of textile and apparel between 2008 and 2015, and toward 2020. It laid down an action plan comprising the construction of materials centers, yarn and fiber factories (to spur domestic production of yarn materials), new industrial zones for the manufacture of textile and apparel products and so on.
Coping with present economic challenges
Le Quoc An |
In the first half of 2009, Vietnam's textile and apparel exports turnover fetched US$4.077 billion, down 4.7% from last year, largely due to a 5% decline in the US market and a 4% drop in the EU. However, there was a surge of 20% in the Japanese market.
Chairman of VITAS, Le Quoc An highlighted the strong potential of Japan for Vietnamese players after the inking of the Vietnam-Japan Economic Partnership Agreement (EPA) in late 2008. The VITAS thus organized an official visiting to Japan early this year in a bid to explore business opportunities and more favorable trading conditions.
Overview of Vietnam's textile and garment industry (until end of 2008) |
During the visit, the officials of VITAS held discussions with leading textile and apparel enterprises in Japan, such as Shikibo on trading fabrics and technical training. Some firms including Mitsui and Ishitoko were reported considering to build new textile plants in Vietnam.
Exports to Korea, Taiwan and Singapore also reaped good results. The domestic market was also developing well, witnessing a growth between 15-18% from the previous year, Mr An added.
Regarding the country's biggest garment buyer – the US, the VITAS supports the government in monitoring the Certificate of Origin (C/O) issuance, product quality and price of textile and apparel exports to the US. Besides, the association actively cooperates with US-based and international firms to diversify distribution channels in the US market. For instance, trade exhibitions are held in Hanoi and Ho Chi Minh, and Vietnamese enterprises also bring their best products to overseas trade fairs, such as "Sourcing at Magic" in Las Vegas, the US.
Additionally, the VITAS invested and built specialized small industrial zones for textile and dyeing, including one in the North at Thai Binh province and other in the South at Tra Vinh province. It also cooperates with Vinatex to restructure the garment sector with two objectives: (a) moving the apparel factories from cities to rural areas available with abundant of labors; (b) producing high-quality and fashionable products, stated Mr An.
Similar to the VITAS, the AGTEK plays an active role for textile and apparel enterprises in southern Vietnam and cooperates with the VITAS to address challenges of the industry. It also supports its members to access financial and technical supports from the authorities, approach new markets via the National Commercial Promotion Programs and so forth.
|
| We are collecting readers' comment for improving our website. If you are willing to help, please CLICK HERE to complete a survey. Your comments matter. |
|
|
|
|
| Copyright © Adsale Publishing Limited. Any party needs to reprint any part of the content should get the written approval from Adsale Publishing Ltd and quote the source "ATA Journal for Asia on Textile & Apparel", Adsale Textile English Website - www.AdsaleATA.com. We reserve the right to take legal action against any party who reprints any part of this article without acknowledgement. For enquiry, please contact Editorial Department. |
Write a mail to the editor : 
