Yaa Overview Of The Vietnam Cloth Too Garment Manufacture
Overview of the Vietnam Textile in addition to Garment Industry
Nguyễn Thị Danh
Hanoi University of Science in addition to Technology, Vietnam
Email: nguyenthidanh94@gmail.com
Hanoi University of Science in addition to Technology, Vietnam
Email: nguyenthidanh94@gmail.com
Introduction
Textile industry is an manufacture amongst a long tradition inwards Vietnam. This is an of import sector inwards the economic scheme of our province because it serves the basic needs of human beings, is the manufacture solves many jobs for the monastic enjoin in addition to inwards special it is the sector amongst strengths inwards export, exercise weather condition for economical development, contributing to the residual of imports in addition to exports from the country. Textiles in addition to garment products is 1 of the most of import sectors for Vietnamese export in addition to outsourcing of production. In the procedure of international economical integration, the textile sector, every bit proved to live on a telephone substitution sector inwards the economic scheme was reflected inwards exports continued to increase fifty-fifty during the years of crisis, the marketplace is ever broad open, the pose out of employees inwards the manufacture in addition to to a greater extent than in addition to a large proportion of the industry, the value of the sector's contribution to national income ... all the same facing relentless volatility of globe economies, Textile manufacture is facing opportunities in addition to slap-up challenges.
Textile industry is an manufacture amongst a long tradition inwards Vietnam. This is an of import sector inwards the economic scheme of our province because it serves the basic needs of human beings, is the manufacture solves many jobs for the monastic enjoin in addition to inwards special it is the sector amongst strengths inwards export, exercise weather condition for economical development, contributing to the residual of imports in addition to exports from the country. Textiles in addition to garment products is 1 of the most of import sectors for Vietnamese export in addition to outsourcing of production. In the procedure of international economical integration, the textile sector, every bit proved to live on a telephone substitution sector inwards the economic scheme was reflected inwards exports continued to increase fifty-fifty during the years of crisis, the marketplace is ever broad open, the pose out of employees inwards the manufacture in addition to to a greater extent than in addition to a large proportion of the industry, the value of the sector's contribution to national income ... all the same facing relentless volatility of globe economies, Textile manufacture is facing opportunities in addition to slap-up challenges.
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| Vietnamese garment industry |
The textile products of Vietnam guide hold been exported to 180 countries in addition to territories around the world. Particularly inwards the kickoff vi months of 2015, textile exports Vietnam continues to hold two-digit growth, reaching 12.18 billion U.S.A. dollars, upwardly 10.26% compared amongst the same menstruum of 2014.
Growth
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| Chart textile exports over the years (billion) - Sources: TCKT |
Vietnam's Textile in addition to Garment Industry has seen fast in addition to sustainable growth over the past times years, playing an imperative role inwards the nation's socio-economic development. In 2012, the sector gained US$17.2 billion inwards export turnover, posting a year-on-year increase of 8.5%. The textile in addition to garment sector plans to hold a growth charge per unit of measurement of nearly 10 - 12% in addition to attain US$ 18.5-19 billion inwards 2013, every bit per Vietnam National Textile in addition to Garment Group (Vinatex). Vietnam also expects to bag US$ 8.5 billion from shipments to the U.S.A. marketplace (up 11%); around US$ 2.4 billion from Nippon (up 18%); US$ 1.5 billion from the South Korea (up 15%); US$ 2.4 billion from the European Union in addition to US$ 4.2 billion from other markets past times the halt of 2013.
Prospects for the sector
It tin ship away live on said, textile is 1 of the brilliant spots inwards the film of Vietnam's exports inwards 2014. The potent growth inwards exports has boosted the merchandise residual of the sector towards a surplus. With average export value reached USD 1.955 billion / month, experts said that inwards 2014 Vietnam's garment manufacture may complete exceeded $ 1 billion. Commenting on this possibility, Mr. Le Tien Truong, General Director of Vietnam National Textile Garment Group said: inwards 2014, the textile manufacture is capable of exceeding the target of 0.5-1 billion USD export growth 15-16% compared to the 12% target set. Particularly Vietnam Textile Group also expects exports to attain U.S.A. $ 3.4 billion worth of goods.
Strengths of the Vietnam textile in addition to garment manufacture
Vietnam’s textile in addition to garment sector has seen fast in addition to sustainable growth over the past times years, playing an of import role inwards national socio-economic development. Demand for project inwards the sector is huge. Every year, the sector gives job for 2.2 meg people, generating income for the workers. Export value of textile in addition to garment products inwards recent years has been ranking pose out ii inwards the country’s total export revenue, earning a major beginning of unusual substitution in addition to contributing significantly to Vietnam’s gross national production in addition to budget.
Vietnam has advantages: solely modest investment uppercase required; a quick playback menstruum because of brusque uppercase turnover; lots of preferential policies from the State because of providing much employment; in addition to large domestic consumption - Vietnam is domicile to a population of almost ninety million. Related to the latter, in that location is a vast puddle of young, skilled Vietnamese workers to a greater extent than than willing to piece of work for depression wages.
Vietnam’s joining the WTO inwards 2007 provided it tremendous chance to develop. Vietnam receives equal handling in addition to benefits inwards preferential merchandise merely similar other members of WTO; further, it tin ship away access globe markets conveniently. Right away, the textile in addition to garment sector took potent in addition to stable evolution steps. Vietnam is a top 10 province inwards textile in addition to garment exports. Despite the recent global economical downturn, the sector is seeing impressive export performance. Export revenue exceeded US$11 billion inwards 2010, upwardly 24% against 2009, US$14 billion inwards 2011, accounting for 16.5% of the country's total export revenue in addition to upwardly 38% against 2010.
Vietnam tin ship away live on proud of this commendable performance. Consider that its textile manufacture was the solely sector inwards the province to hold its overall growth in addition to export lucre compared to the previous year. This resulted largely from the sector’s maintaining its traditional export markets (the US, EU, Japan), in addition to expanding to novel export markets (Korea, Taiwan, the Middle East, in addition to Singapore) every bit good every bit marketing to the domestic market. The sector targets to ship US$15 billion inwards 2012, an increase of 11% against 2011. From the next nautical chart nosotros tin ship away larn clear concept of the wearing clothing export seat of Vietnam.
Prospects for the sector
It tin ship away live on said, textile is 1 of the brilliant spots inwards the film of Vietnam's exports inwards 2014. The potent growth inwards exports has boosted the merchandise residual of the sector towards a surplus. With average export value reached USD 1.955 billion / month, experts said that inwards 2014 Vietnam's garment manufacture may complete exceeded $ 1 billion. Commenting on this possibility, Mr. Le Tien Truong, General Director of Vietnam National Textile Garment Group said: inwards 2014, the textile manufacture is capable of exceeding the target of 0.5-1 billion USD export growth 15-16% compared to the 12% target set. Particularly Vietnam Textile Group also expects exports to attain U.S.A. $ 3.4 billion worth of goods.
Strengths of the Vietnam textile in addition to garment manufacture
Vietnam’s textile in addition to garment sector has seen fast in addition to sustainable growth over the past times years, playing an of import role inwards national socio-economic development. Demand for project inwards the sector is huge. Every year, the sector gives job for 2.2 meg people, generating income for the workers. Export value of textile in addition to garment products inwards recent years has been ranking pose out ii inwards the country’s total export revenue, earning a major beginning of unusual substitution in addition to contributing significantly to Vietnam’s gross national production in addition to budget.
Vietnam has advantages: solely modest investment uppercase required; a quick playback menstruum because of brusque uppercase turnover; lots of preferential policies from the State because of providing much employment; in addition to large domestic consumption - Vietnam is domicile to a population of almost ninety million. Related to the latter, in that location is a vast puddle of young, skilled Vietnamese workers to a greater extent than than willing to piece of work for depression wages.
Vietnam’s joining the WTO inwards 2007 provided it tremendous chance to develop. Vietnam receives equal handling in addition to benefits inwards preferential merchandise merely similar other members of WTO; further, it tin ship away access globe markets conveniently. Right away, the textile in addition to garment sector took potent in addition to stable evolution steps. Vietnam is a top 10 province inwards textile in addition to garment exports. Despite the recent global economical downturn, the sector is seeing impressive export performance. Export revenue exceeded US$11 billion inwards 2010, upwardly 24% against 2009, US$14 billion inwards 2011, accounting for 16.5% of the country's total export revenue in addition to upwardly 38% against 2010.
Vietnam tin ship away live on proud of this commendable performance. Consider that its textile manufacture was the solely sector inwards the province to hold its overall growth in addition to export lucre compared to the previous year. This resulted largely from the sector’s maintaining its traditional export markets (the US, EU, Japan), in addition to expanding to novel export markets (Korea, Taiwan, the Middle East, in addition to Singapore) every bit good every bit marketing to the domestic market. The sector targets to ship US$15 billion inwards 2012, an increase of 11% against 2011. From the next nautical chart nosotros tin ship away larn clear concept of the wearing clothing export seat of Vietnam.
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| U.S. Textiles in addition to Apparel Imports from “2nd Tier Countries” |
Source: U.S.A. Department of Commerce Apparel Imports Data
Such achievements are attributable to enterprises' competency inwards edifice upwardly in addition to consolidating partnership amongst major importers throughout the world, piece taking reward of Vietnam’s abundant low-cost but skilled project force. There are promising signs for the garment in addition to textile manufacture every bit the global economic scheme is bouncing back.
The Vietnam Textile in addition to Garment Association (VITAS) notes the strategy for Vietnam Textile in addition to Garment Industry evolution for 2015-2020 is: (i) production growth from 12-14% a year, (ii) export growth at 15% a year, (iii) providing job to 2.75 meg people inwards 2015 in addition to 3.0 meg people inwards 2020, in addition to (iv) export revenue attaining U.S.A. $18 billion dollars inwards 2015 in addition to U.S.A. $25 billion dollars inwards 2020.
Strengths
Such achievements are attributable to enterprises' competency inwards edifice upwardly in addition to consolidating partnership amongst major importers throughout the world, piece taking reward of Vietnam’s abundant low-cost but skilled project force. There are promising signs for the garment in addition to textile manufacture every bit the global economic scheme is bouncing back.
The Vietnam Textile in addition to Garment Association (VITAS) notes the strategy for Vietnam Textile in addition to Garment Industry evolution for 2015-2020 is: (i) production growth from 12-14% a year, (ii) export growth at 15% a year, (iii) providing job to 2.75 meg people inwards 2015 in addition to 3.0 meg people inwards 2020, in addition to (iv) export revenue attaining U.S.A. $18 billion dollars inwards 2015 in addition to U.S.A. $25 billion dollars inwards 2020.
Strengths
- Plentiful competitively-priced project - Vietnamese salaries are lower than those inwards China, giving the province a distinct cost advantage; in addition to
- Supportive regime policies, including incentives to attract unusual at 1 time investment.
- A to a greater extent than oft than non supportive regime policy, allowing, for example, duty-free imports of raw materials on the status they are re-exported every bit have on products inside 90-120 days; in addition to
- The Vietnamese manufacture has shown capacity to react chop-chop in addition to flexibly to novel orders.
Opportunities
- Development of ‘non-traditional’ markets for Vietnamese have on products holds out promise: the manufacture is looking at the Middle East in addition to Russian Federation every bit of import novel opportunities inwards this regard; in addition to
- Greater production differentiation in addition to specialization may boost margins – for instance inwards functional work-wear, domicile furnishings, in addition to other niche markets.
Confronted amongst many challenges
Join TPP, textiles Viet Nam faces many challenges: tariff on (with 0% taxation rate) for Textile goods are solely applied inside three years later the TPP was signed in addition to took effect. After three years, desire to relish this taxation rate, the participating countries must adhere to the formula TPP TPP posed past times the "From yarn forward", pregnant that the passage from the phase of spinning, weaving - dyeing - finishing in addition to cuts should live on made inwards the Member States.
For Vietnam, past times the halt of 2012, the entire textile sector amongst 5.1 meg spindles in addition to virtually 820,000 tons of used materials (natural cotton fiber 420,000 tons) in addition to fiber types (about 400,000 tonnes). But the textile sector to import 415,000 tonnes of natural cotton fiber (domestic solely come across virtually 1%). About fiber in addition to chemic fiber types must import virtually 54% (220,000 tonnes). On canvas, 2012, the whole sector employs virtually 6.8 billion meters of fabric, but domestic production is solely 0.8 meters, piece the repose is imported. This reality shows that the textile sector, Vietnam is theme import raw materials from abroad.
"For sewing cloth dyeing - 1 of the requirements of the TPP, a long fourth dimension this expanse is non invested, in addition to then at nowadays the base of operations of dyed cloth across the province tin ship away count on the fingers. Already the world, nearly 100 industrial zones inwards the province today exercise non desire to have or lease the premises for structure of dye that the manufacture is probable to crusade environmental pollution, "said Nguyen Dinh Truong. Deputy Chairman of the Association textile acknowledge. Mr. School added difficulty of the textile sector is at nowadays the latest applied scientific discipline in addition to equipment is almost zero, because equipment in addition to applied scientific discipline are all imported, which tin ship away non live on produced. Panorama of the textile sector is at nowadays almost 4,000 establishments are solely implemented final stitch cutting - sewing in addition to finishing (CMT)
Development policy for the sector
The futurity of the Vietnamese textile manufacture looks meridian owing to the continuous efforts made past times textile companies to upgrade their equipment to heighten their competitiveness. Vietnam's gross domestic product is expected to impact US$ 235 billion past times 2025 in addition to the garments in addition to textiles may select an export turnover of US$ 28.5 billion past times 2025. So, structure grooming human resources for the textile industry, including Vietnam Textile in addition to Apparel Association in addition to the Vietnam Textile in addition to Garment Group is the focal betoken to coordinate in addition to link amongst the grooming facilities at domicile in addition to abroad - Research in addition to application of novel technologies, novel materials, in addition to consulting capacity building, question in addition to development, applied scientific discipline transfer, the mightiness to blueprint in addition to creation of models of the Institute - Focusing on environmental protection, amongst a focus on dealing amongst H2O pollution inwards the textile dye company, technological conception inwards this sector towards fuel economic scheme in addition to environmental friendliness investment inwards applied scientific discipline in addition to unopen process. Representatives of textile facilities inwards the metropolis like: Corporation HoaTho Textile, Textile Corporation 29-3, Kad Industrial SA Company Vietnam (HoaKhanh Industrial Zone) ... are keen State wanted to guide hold measures to foreclose these businesses, which are mainly FDI in addition to mortal enterprises inwards Vietnam brought the applied scientific discipline in addition to outdated equipment, guide hold been fully depreciated exercise contest unfair on the marketplace in addition to project disturbance inwards the sector. Simultaneously, the State proposed investment policy presently guide hold potent yarn, dyed to a unopen domestic production processes every bit TPP provisions.
Join TPP, textiles Viet Nam faces many challenges: tariff on (with 0% taxation rate) for Textile goods are solely applied inside three years later the TPP was signed in addition to took effect. After three years, desire to relish this taxation rate, the participating countries must adhere to the formula TPP TPP posed past times the "From yarn forward", pregnant that the passage from the phase of spinning, weaving - dyeing - finishing in addition to cuts should live on made inwards the Member States.
For Vietnam, past times the halt of 2012, the entire textile sector amongst 5.1 meg spindles in addition to virtually 820,000 tons of used materials (natural cotton fiber 420,000 tons) in addition to fiber types (about 400,000 tonnes). But the textile sector to import 415,000 tonnes of natural cotton fiber (domestic solely come across virtually 1%). About fiber in addition to chemic fiber types must import virtually 54% (220,000 tonnes). On canvas, 2012, the whole sector employs virtually 6.8 billion meters of fabric, but domestic production is solely 0.8 meters, piece the repose is imported. This reality shows that the textile sector, Vietnam is theme import raw materials from abroad.
"For sewing cloth dyeing - 1 of the requirements of the TPP, a long fourth dimension this expanse is non invested, in addition to then at nowadays the base of operations of dyed cloth across the province tin ship away count on the fingers. Already the world, nearly 100 industrial zones inwards the province today exercise non desire to have or lease the premises for structure of dye that the manufacture is probable to crusade environmental pollution, "said Nguyen Dinh Truong. Deputy Chairman of the Association textile acknowledge. Mr. School added difficulty of the textile sector is at nowadays the latest applied scientific discipline in addition to equipment is almost zero, because equipment in addition to applied scientific discipline are all imported, which tin ship away non live on produced. Panorama of the textile sector is at nowadays almost 4,000 establishments are solely implemented final stitch cutting - sewing in addition to finishing (CMT)
Development policy for the sector
The futurity of the Vietnamese textile manufacture looks meridian owing to the continuous efforts made past times textile companies to upgrade their equipment to heighten their competitiveness. Vietnam's gross domestic product is expected to impact US$ 235 billion past times 2025 in addition to the garments in addition to textiles may select an export turnover of US$ 28.5 billion past times 2025. So, structure grooming human resources for the textile industry, including Vietnam Textile in addition to Apparel Association in addition to the Vietnam Textile in addition to Garment Group is the focal betoken to coordinate in addition to link amongst the grooming facilities at domicile in addition to abroad - Research in addition to application of novel technologies, novel materials, in addition to consulting capacity building, question in addition to development, applied scientific discipline transfer, the mightiness to blueprint in addition to creation of models of the Institute - Focusing on environmental protection, amongst a focus on dealing amongst H2O pollution inwards the textile dye company, technological conception inwards this sector towards fuel economic scheme in addition to environmental friendliness investment inwards applied scientific discipline in addition to unopen process. Representatives of textile facilities inwards the metropolis like: Corporation HoaTho Textile, Textile Corporation 29-3, Kad Industrial SA Company Vietnam (HoaKhanh Industrial Zone) ... are keen State wanted to guide hold measures to foreclose these businesses, which are mainly FDI in addition to mortal enterprises inwards Vietnam brought the applied scientific discipline in addition to outdated equipment, guide hold been fully depreciated exercise contest unfair on the marketplace in addition to project disturbance inwards the sector. Simultaneously, the State proposed investment policy presently guide hold potent yarn, dyed to a unopen domestic production processes every bit TPP provisions.
References
- Vietnam National Textile in addition to Garment Group (Vinatex)
- Vietnam Trade Promotion Agency: VIETRADE
- Web portal Vietnam Textile Corporation
- Overview of the Textile in addition to Garment Sector inwards Vietnam –by Embassy of Kingdom of Denmark inwards Vietnam
- http://insightalpha.com/news_details.php?cid=189&sid=75&nid=351
- An Overview of Textile Industry inwards India
- An Overview of the Readymade Garment Industry inwards Republic of Republic of India
- Overview of Textile Sector of Pakistan
- Condition of Ready-made Garment (RMG) Sector of Bangladesh
- An Overview of the People's Republic of Bangladesh Ready-Made Garment Industry