return icon Vietnamnet.vn

Fabric production an issue for Vietnam's textile industry

Fabric production is a challenge for Vietnam's textile and garment industry when it comes to free trade agreements (FTAs) requirements on product origin.

 

 

Production at the VIT Garment Company. Viet Nam needs more textile and dyeing projects to produce fabric meeting origin regulations at free trade agreements like EVFTA and CPTPP. — Photo nhandan.com.vn

 

The import value of fabric and sub-material for the textile and garment industry accounts for 40 per cent of garment export revenue. Of which, 70 per cent of imported fabric was for manufacturing export garments.

Truong Van Cam, deputy chairman of the Viet Nam Textile and Apparel Association (Vitas), said stronger links in the industry are needed.

“To take those advantages, the local textile and apparel enterprises must strengthen links among them to focus all sources on manufacturing materials meeting requirements on product origin in FTAs like the EU-Viet Nam Free Trade Agreement (EVFTA), especially fabric for producing export garment products," he told Viet Nam News.

Enterprises will have to solve difficulties in the development of the production chain, such as differences in terms of quantity, quality and price of products, for long-term co-operation, Cam said.

The association also proposed the Ministry of Industry and Trade (MoIT) complete a development strategy for Viet Nam's textile and garment industry to submit to the Government for approval, he said.

“The strategy needs to focus on the planning of large-scale textile industry. It must have industrial zones with advanced wastewater treatment systems to attract textile and dyeing projects,” Cam said.

"Meanwhile, local authorities should grant investment licences for dyeing and textile projects because current textile and dyeing technologies are not as polluting as they used to be."

In the past, many localities did not give investment licences for dyeing and textile projects due to fears they would cause environmental pollution but now, the global textile industry has dyeing technology to lessen pollution.

"Therefore, localities need to change the view of textile and dyeing projects to give investment licences for more textile and dyeing projects, supporting the development of the domestic apparel industry," Cam said.

The Government should direct localities to focus on solving difficulties of the textile and garment enterprises so Viet Nam could have enough supply of raw materials meeting origin requirements to enjoy tariff preferences in FTAs.

In addition, the research and development (R&D) activities of textile and apparel industry are limited. Therefore, the State needs more investment in R&D activities to create good conditions for domestic research institutes to develop new products and equipment, he added.

The Mekong-China Strategic Studies Programme (MCSS) report released in Ha Noi early this week also pointed out that the domestic textile and garment industry lacks sufficient domestic supply of materials, especially fabric, so it will be difficult to take advantage of tariff cuts in FTAs.

Viet Nam has signed 13 FTAs, including 12 FTAs that are effective and one FTA waiting for approval. The nation is negotiating three other FTAs.

The deals bring many advantages in competitiveness for the textile and apparel industry. For instance, tariff rates are between zero and 5 per cent for textile, garment and raw materials. Meanwhile, according to World Trade Organisation (WTO) regulations, the tariffs are 12 per cent for textile and raw materials and 25 per cent for garment products.

However, Viet Nam has only taken a third of the advantages of the FTAs, according to the report. Viet Nam has not yet exploited potential markets that are members of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) such as Mexico, New Zealand, Canada and Australia.

Of which, Australia and Canada are two large textile and garment markets with total value of about $10 billion per year, while the market share of Vietnamese textile and garments products in the two markets is worth only about $500 million per year.

The report said Canada is a high potential export market for Viet Nam’s garment products.

According to the CPTPP, 42.9 per cent of Viet Nam’s garment exports to Canada will enjoy tariffs of zero in the first year and tariffs on the remaining 57.1 per cent will be removed in the fourth year if Vietnamese products meet regulations on the origin of yarn. — VNS

Vietnamese textile and garment industry: difficulties still ahead

Vietnamese textile and garment industry: difficulties still ahead

With demand decreasing sharply, the textile and garment industry is expected to continue facing difficulties in Q2.

VN textile and garment shares lose appeal

VN textile and garment shares lose appeal

Textile and garment companies are facing double problem: they find it difficult to import input materials and cannot export their goods.

MORE NEWS

Vietnamese farmers on board the ‘digital agriculture train’

In the digital era, next-generation farmers can fertilize and water their fields in Binh Phuoc from afar, even in a different country.

Vietnam forecast to become second-largest economy in Southeast Asia by 2036

2023 is predicted to be the year of many challenges for the Vietnamese economy due to the gloomy outlook of the global economy and multiple crises.

Prenn Pass leading to Dalat to be closed for expansion

Vehicles will be banned from using the seven-kilometer-long Prenn Pass to travel to Dalat City as work on the pass upgrade and widening project begins on February 6.

Coach Park Hang-seo to hold event thanking fans for their support

The event will be held at Athena Room 2, Hanoi Grand Plaza Hotel, from 6pm to 8.30pm on February 2.

Hanoians queue at 3am to buy gold on the God of Wealth Day

To buy gold for luck on the God of Wealth Day (the 10th day of the lunar year - January 31), many Hanoians queued in front of gold shops on Tran Nhan Tong and Cau Giay streets from 3 am.

10,800 new enterprises established in Vietnam in January 2023

Vietnam had 10,800 newly established enterprises in January, an increase of 0.7% over the previous month and a fall of 16.6% over the same period last year.

Hai Phong hosts 700-year-old wrestling festival

As part of the Lunar New Year celebration, known locally as Tet, local people of Vinh Khe village in An Duong district of Hai Phong hold a wrestling festival on the seventh day of the first lunar month.

International visitors to Vietnam increased sharply in January 2023

International visitors to Vietnam in January 2023 reached over 871,000 arrivals, an increase of 23.2 percent compared to December 2022 and 44.2 times higher than last year.

Hanoi sees strong increase of apartment prices

Prices for apartments in Hanoi tend to increase as supply becomes short, according to the Vietnam Association of Realtors (VARS).

Tennis: Vietnam against Indonesia for Davis Cup World Group II berth

According to the Vietnam Tennis Federation (VTF), Vietnam will play Indonesia in the 2023 Davis Cup World Group II Play-offs on February 4-5 at the Hanaka Paris Ocean Park in the northern province of Bac Ninh.

Nearly 100 petrol stations shut down during Tet holiday

Nearly 100 petrol stations nationwide were closed during the Tet Lunar New Year holiday, claiming they had run out of stock and lacked employees.

Health ministry asks for strengthening COVID-19 diagnosis and treatment

The Ministry of Health has ordered local health departments to strengthen diagnosis and treatment of COVID-19 in the context of new variant emergence.

Da Lat hot air balloon festival slated for late April

Local people and tourists will have the chance to enjoy famous tourist sites throughout Da Lat city in the Central Highland province of Lam Dong from above during hot air balloon trips which will run from April 27 to May 3.

Buon Ma Thuot Coffee Festival scheduled to kick off in March

The eighth edition of the Buon Ma Thuot Coffee Festival is set to be held in the Central Highlands province of Dak Lak from March 10 to March 14, as announced on January 30 by the provincial People’s Committee.

Vietnamese workers to enjoy five-day Reunification Day holiday

As this year’s Hung Kings festival is just one day before the Reunification Day and International Workers' Day, workers in Vietnam will enjoy a rare five-day holiday.
back_to_top