Vietnam News, 15 May 2012
HA NOI — Viet Nam's garment and textile sector faces problems with its structure and production methods, said Nguyen Van Tuan, deputy general secretary of Viet Nam Garment and Textile Association.
Tuan said the country needed 400,000 tonnes of cotton per year, but domestic production could meet a tiny 0.75 per cent of the demand. The industry also supplied only 30 per cent of a yearly demand of 400,000 tonnes of man-made fibre.
He said the sector continues to import 100 per cent of its spare parts and 70 per cent of the materials, which, combined with a low production capacity, makes Viet Nam less competitive than other countries.
He added that one of the biggest challenges was that the sector last year imported 5.2 billion metres of fabric out of a total 6 billion metres needed.
Than Duc Viet, managing director of Garment 10 Company, agreed that garment and textile production had been determined by market.
In most of big markets including the US, Eastern Europe and Japan, retailers accounted for 70 to 90 per cent of the market share while 10 to 30 per cent belonged to commercial businesses and producers under the original brand manufacturer (OBM).
"This means that Vietnamese garment and textile producers do not have direct access to markets but have to operate through middlemen," Viet said.
Last year, the world's garment and textile turnover was US$480 billion. Viet Nam accounted for 3 per cent of that figure with a turnover of $14.5 billion, though it has been listed among the five leading exporters.
In addition, the sector has been lacking capital and mainly dependent on bank loans. Several businesses have not expanded their production or upgraded technologies because of high interest rates.
Pham Van Chat, a representative from the Ministry of Industry and Trade, said garment and textile enterprises have been experiencing a serious capital shortage even though the Government and commercial banks have provided solutions to help them access loans.
Dang Phuong Dung, the association's vice chairwoman cum general secretary, said the sector should focus on building and expanding its distribution system, building Vietnamese trademarks and increasing co-operation.
Dung asked garment and textile businesses to develop their brand names in neighbouring markets such as Laos, Cambodia and Myanmar.
The association said the industry should develop, reduce imports and increase value for businesses. — VNS
HA NOI — Viet Nam's garment and textile sector faces problems with its structure and production methods, said Nguyen Van Tuan, deputy general secretary of Viet Nam Garment and Textile Association.
Tuan said the country needed 400,000 tonnes of cotton per year, but domestic production could meet a tiny 0.75 per cent of the demand. The industry also supplied only 30 per cent of a yearly demand of 400,000 tonnes of man-made fibre.
He said the sector continues to import 100 per cent of its spare parts and 70 per cent of the materials, which, combined with a low production capacity, makes Viet Nam less competitive than other countries.
He added that one of the biggest challenges was that the sector last year imported 5.2 billion metres of fabric out of a total 6 billion metres needed.
Than Duc Viet, managing director of Garment 10 Company, agreed that garment and textile production had been determined by market.
In most of big markets including the US, Eastern Europe and Japan, retailers accounted for 70 to 90 per cent of the market share while 10 to 30 per cent belonged to commercial businesses and producers under the original brand manufacturer (OBM).
"This means that Vietnamese garment and textile producers do not have direct access to markets but have to operate through middlemen," Viet said.
Last year, the world's garment and textile turnover was US$480 billion. Viet Nam accounted for 3 per cent of that figure with a turnover of $14.5 billion, though it has been listed among the five leading exporters.
In addition, the sector has been lacking capital and mainly dependent on bank loans. Several businesses have not expanded their production or upgraded technologies because of high interest rates.
Pham Van Chat, a representative from the Ministry of Industry and Trade, said garment and textile enterprises have been experiencing a serious capital shortage even though the Government and commercial banks have provided solutions to help them access loans.
Dang Phuong Dung, the association's vice chairwoman cum general secretary, said the sector should focus on building and expanding its distribution system, building Vietnamese trademarks and increasing co-operation.
Dung asked garment and textile businesses to develop their brand names in neighbouring markets such as Laos, Cambodia and Myanmar.
The association said the industry should develop, reduce imports and increase value for businesses. — VNS
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