New impetus for savings and development of Vietnam’s textile industry

Vietnam, in recent years, has been working hard to actively participate in the negotiations of the Trans-Pacific Partnership Agreement (TPP), with a view to exporting clothing and textiles to member markets after the agreement is signed, especially the United States (Vietnam’s largest exporter of textiles and clothing products market), the tax rate on clothing and textiles will gradually drop from the current 17% to 32% to zero. Vu Tien Loc, chairman of the Vietnam Chamber of Commerce and Industry, believes that the TPP agreement will have a positive effect on Vietnam’s expansion of economic space and will also affect Vietnam’s domestic market. Relevant Vietnamese experts also said that the TPP agreement will promote the leap-forward development of Vietnam’s textile and apparel industry, inject important impetus into the development of Vietnam’s textile and apparel industry, and help consolidate the status of Vietnam’s textile and apparel industry.
There are currently more than 4,000 textile and garment enterprises in Vietnam. In 2012, the operating income of the textile and garment industry reached 20 billion US dollars, of which the textile and garment export value reached more than 17 billion US dollars, creating employment opportunities for 2.5 million workers and contributing 10% to the GDP. up to 10%. The benefits that Vietnam will bring to its economic development after joining the TPP in the future, coupled with the rapid development of Vietnam’s textile industry, have attracted more and more international companies to extend their olive branch to it.
Chen Guangzhong, president of Vietnam National Textile and Garment Group (Vinatex), said that textile and garment companies are always paying attention to the progress of the TPP that Vietnam participates in. More than a dozen textile and printing and dyeing companies from mainland China, Japan, South Korea, Austria, etc. plan to set up operations in Vietnam. factory.
TPP attracts Chinese textile companies to build factories in Vietnam
The Vietnam News Agency believes that Chinese companies are considering moving production plants to Vietnam to strive for the benefits brought by the TPP agreement in a timely manner. At present, many Chinese companies plan to build factories in Vietnam, and some companies have already implemented it. Hong Kong China’s TAL Garment Group plans to invest US$200 million in Vietnam to expand its production scale in Vietnam; China Sunrise Co., Ltd. and other groups are also actively looking for investment opportunities in Vietnam, aiming to make full use of the advantages after the TPP takes effect. According to the “Vietnam Economic Times” in April, a large Chinese textile company obtained an “investment license” to invest in Vietnam. This project is located in Bao Minh Industrial Zone, Nam Dinh Province, covering an area of ​​80,000 square meters, with an annual output of 9,816 tons of spindles. After the project is completed, Vietnamese garment processing factories will no longer import raw materials and accessories for garment processing from abroad. In addition, Hong Kong Luenthai Garment Company, Vietnam Vinatex Garment Co., Ltd. and China Sanshui Jialida Textile Dyeing Co., Ltd. are negotiating to build a textile industrial park in Nam Dinh Province. The total investment in the park is approximately US$400 million, covering an area of ​​1,500 hectares. Construction is expected to begin at the end of 2014.
In addition, China’s Texhong Textile Group has invested in the construction of two factories in Quang Ninh Province, Vietnam, with a capacity of 500,000 yarns per year. It has invested an additional US$300 million to build a new factory in Quang Ninh Province in May; Jiangsu Yulun Textile Group Co., Ltd. has been issued a textile and printing and dyeing factory investment license of US$680 million and will set up a factory in Baoming Industrial Park, Nam Dinh Province. In Ho Chi Minh City, ForeverGlorious, a subsidiary of Taiwan’s Xue Changxing Group, has promised to invest US$50 million to implement a project from fabric weaving to the production of garments for underwater sports; Mainland China’s Shenzhou International specializes in the production of trademark clothing such as Nike, Adidas, and Puma. GainLucky, a subsidiary of the group, has promised to invest US$140 million in clothing design and production.
French and Vietnamese textile companies want to build long-term relationship
“At present, France is the sixth largest exporter of textile machinery in the world, with an annual export volume of nearly 1.2 billion U.S. dollars. Its products are exported to 115 countries. France hopes to establish long-term mutually beneficial cooperation with Vietnamese enterprises. French textile machinery The company hopes to become a trustworthy partner of Vietnamese companies, and hopes to help Vietnamese companies give full play to the country’s textile manufacturing advantages and promote the development of its textile industry.” In April this year, Secretary General of the French Textile Machinery Manufacturers Association (UCMTF) Evelyne Cholet said at the seminar in Ho Chi Minh City, Vietnam. Ho Thi Kim Thoa, Deputy Minister of Trade and Industry of Vietnam, also said that Vietnam ranks high in the global textile and apparel manufacturing field. The Vietnamese government has been committed to continuously expanding its global textile and apparel business and increasing investment in weaving and dyeing technology to provide Domestic textile enterprises create more favorable conditions.
Evelyne Cholet proposed that French and Vietnamese companies should make full use of experience exchanges and technology exchanges to increase the added value of Vietnamese textile products and continuously enhance business cooperation between the two countries. In the past 10 years, Vietnam’s GDP has reached 10%. Vietnam is not only a strong attraction for foreign investment, but it is also the gateway to the Asian textile market.
Mongolia-Vietnam cooperation has broad prospects
​Recently, a Vietnam-Mongolia trade exchange seminar was held in Ho Chi Minh City, Vietnam, aiming to promote trade relations and cooperation in the textile and clothing field between Vietnam and Mongolia. Regzenda Sandag, deputy director of the Light Industry Policy Coordination Bureau of the Ministry of Industry, Agriculture and Animal Husbandry of Mongolia, said that it is very important to promote cooperation between Mongolia and Ho Chi Minh City’s textile and garment enterprises and to further strengthen Vietnam-Mongolia trade relations. Currently, the Mongolian government is launching many action plans to promote development and integration into the world economy. In the textile and garment industry, Mongolia hopes to strengthen cooperation with Ho Chi Minh City, Vietnam, to exchange experts and experience, so as to find solutions that are suitable for bilateral trade.Through cooperation, we will vigorously promote the development of the textile and garment industry and enhance exports to markets around the world.
Nguyen Binh An, deputy director of the southern office of Vietnam Textile and Garment Group (Vinatex), said that Vietnam’s textile and garment industry has an annual growth rate of 15% to 20%, and produces approximately 3 billion pieces of textiles every year. The policies of the Vietnamese government have promoted the global integration development of Vietnam’s textile industry and are increasingly attracting investment from global textile and apparel manufacturers. In terms of forming a textile supply chain, including spinning, weaving, sewing and dyeing, Vietnam’s textile and garment industry needs to strengthen cooperation with Mongolia, which has strong raw material resources. Tran Xuan Dien, deputy director of the Ho Chi Minh City Industry and Trade Bureau, said that trade cooperation between Ho Chi Minh City and Mongolia, especially in the field of textile and clothing, has broad prospects. Ho Chi Minh City has advantages in labor force, production capacity and market, while Mongolia has advantages in raw materials. In addition, Mongolia’s preferential policies will vigorously attract foreign investors. Of course, there are problems such as language barriers and geographical distance between the two countries, which are challenging for the trade between the two countries. They need to seize the cooperation opportunities in logistics, transportation and trade exchanges, constantly overcome obstacles, and promote the cooperation between the two countries. trade development.
In addition to the TPP agreement, Vietnam is currently negotiating important free trade agreements (FTAs) with relevant parties, including the TPP, the Vietnam-EU Free Trade Area, the Vietnam-Korea Free Trade Area, the 10+6 Free Trade Area (RCEP), etc. Many foreign countries The company has begun to invest a lot of money to occupy a favorable position in the competition for the huge business opportunities brought by the FTA to Vietnam, and the textile and garment industry will continue to attract the attention of all parties around the world.