Vietnam hopes textile companies will reduce processing links

According to the “Vietnam Economic Times” report on May 15, the Vietnam Textile Association stated that in the global supply chain of the textile industry, the R&D and sales links have the highest added value, but these are the two weakest links in Vietnam’s domestic textile industry. .
According to the report, at present, Vietnam’s domestic textile industry only accounts for 30% of garment exports from the purchase of raw materials, production and sales, and the remaining 70% is the export of processed products. According to the Vietnam Chamber of Commerce and Industry (VCCI), Vietnam’s textile supporting industry is weak and 90% of textile fabrics need to be imported. The textile fabrics produced by domestic enterprises only meet 20% of the market demand, textile dyes meet 10-15%, and textile machinery and equipment meet 20%. At the same time, Vietnam’s clothing supporting industry is small in scale, with a small number of enterprises and scattered distribution. Therefore, domestically produced clothing cannot meet market demand. Because textile fabrics are highly dependent on imports, Vietnam has become a textile and garment processing center.
According to the report, relevant experts said that Vietnam needs to increase investment in the textile and clothing design process, especially in textile fabrics. In addition, to participate in the global supply chain of the textile industry, Vietnam must increase investment in production and exports.