The 2 factories have started operating process in late of September 2016 are HANSOLL Textile Group from South Korea with a capacity of 90 million pieces per year in Giao Long Industrial Park (Ben Tre) and Unisoll Vina Co., Ltd conducted with the total investment capital of $50 million which is construction of 4 buildings with 96 sewing lines and the scale of 5,500 workers that specialize of apparel and other products of leather and fur to export.
This is also the biggest FDI project in Ben Tre with biggest scale of labor by HANSOLL Textile Group in VietNam. Expectedly til 2018, Vina Unisoll would complete the entire of 10 factories with 236 sewing lines bringing up the total number of employees to over 16,000 people.
In the meantime, VNG - a project of exporting garment factories with similar capital with HANSOLL Textile Group has been inaugurated at Vinh Phuc province in last mid-October owned by TAL Apparel from Hong Kong. Built on a total area of 75,000 m2, VNG is the biggest and most modern factory of TAL with scale supply of 4 million units in the first year of operation. TAL is one of the world's leading corporations in the textile sector. With a workforce more than 26,000 employees working in 11 factories in Hong Kong, Thailand, Malaysia, China, Indonesia, Vietnam, TAL has become a leading enterprise in textile industry. The launch of the plant VNG as the second project of the TAL in Vietnam has increased the output of the TAL in the market to more than 60 million pieces of garment per year and the big number of employees at the two plants reached 16,000 people. One in 6 men shirts sold in the US market, there is certainly one made from TAL.
Many textile dyeing enterprises continue to invest in material plant: In last 2 year time, a lot of enterprises in the textile industry has developed their own clusters to actively source for local material. In Binh Duong Province, There are 10 enterprises with investment of hundred million dollars. Therefore, many companies can over come shortfalls after US President-elect Donald Trump announced the United States would withdraw from the TPP. However, investment in the textile factories of raw materials still flow in because it is a long term strategy.
Activity of last 14 years mainly on processing and exporting to the US markets, the International Garment Company has urgently invest a dyeing factory in Dong Nai to welcome the TPP and prepare for operation in early of next year. The construction of the plant is actively helping enterprises with raw materials and thus plans to work with other customers to get more orders.
Esquel Garment Manufacturing Co., Ltd Vietnam also has operations in VN over decades, all textile raw materials are taken from China. In 2015, companies have invested a dyeing factory in Binh Duong province, also in part to catch the TPP. The factory has completed the first phase and put into operation within one year. The enterprise said that they will have to calculate more carefully for investment in Phase 2 & 3 of the plant. However in the long term, strategies to build factories with closed process of textile manufacture must still be deployed for invest in Vietnam.
The fourth revolution of industrial - CN 4.0 do big impact to Vietnam textile: CN 4.0 with the explosive growth of information technology and the Internet has created the best advantage to the industry. This revolution has enhanced the income level, improved the quality of products and services created with the low cost and simple process.
However, CN 4.0 forecast some problems for all the industry of production which is a high risk of losing their jobs. Against some of the labor-intensive like textiles, leather and footwear, A recent report of the ILO (07 July 2016) forecast, machinery and technology of CN 4.0 can Replace 85% of textile workers in some next decades in VietNam. Mr Truong Van Cam - Vice President and General Secretary of Vietnam Textile and Apparel Association (VITAS) said that in the textile process and high fashion making which need multiple stages of production, CN 4.0 can hardly replace work by hand of people in a short time like sewing stages. However, CN 4.0 can still cause risk of losing jobs for textile workers, especially workers with low level and easy process replaced by machinery but impact level of each process stages will be different. Therefore, Mr Truong Van Cam gave some suggestion for solutions to all textile enterprises that they need more proper awareness and learn carefully about the impact of CN 4.0 by realistic vision, objective and consistent with the characteristics of production industry under the fashion trend, market demand, coast region, caste products for more reasonable prices. Representatives from VITAS also reccomend some macro solutions to the Government that they should apply information technology in the legal institutional reform, administrative reform to help textile companies improve competing capability and accumulate resources for new technology trend of CN 4.0
Textile companies need to create different value in wool: With the international market trend give more and more attention to the high-end product segment recently in HCMC, Renewable Woolen Company (AWI) and Woolmark Company (TWC) have organized an exhibition of wool products for the second time. The exhibition attracted participations of more than 27 reputable textile companies from local and abroad to encourage retailers and international brands to take advantage of premium Merino Australian sheep wool produced in Vietnam. According to Alex Lai - Chief Representative of Woolmark Hong Kong, the trend of developing garment from basic products made of cotton, polyester ... has gradually shifted to premium products such as wool, cashmere, silk and Fiber products from the above materials.
Turkey imposed a polyester fiber tax from Vietnam up to 72.56%: On 14 November 2016 The Competition Administration Department (Ministry of Industry and Trade) quoted from the final decision of Turkey that they would apply the level Anti-dumping duty up to 72% for polyester (DTY) fiber from Vietnam. Specifically, the Import Department - Ministry of Economy of Turkey (MOET) has issued the final decision of anti-dumping investigation with polyester textured yarn imported from some countries, including Vietnam. According to this decision, the Ministry of Economy of Turkey has decided to apply the anti-dumping duty on Vietnamese enterprises is 34.81% - 72.56%, and Thai enterprises are 6.88% - 37.69%.
Previously, Turkey also sued anti-dumping of another yarn (man-made or synthetic staple fiber) from Vietnam, Malaysia, Greece, Pakistan and Thailand. Therefore, Turkey imposed anti-dumping tariffs of 19.48% to 25.25% on Vietnam's yarn products for 5 years started from August 2014. According to VICOSA, Turkey accounted for 1/3 of Vietnam's exports but this market imposed anti-dumping tariffs on Vietnamese yarns in the past few years and caused businesses to shift exporting yarn into China. In addition, some Vietnamese companies have also begun to promote fiber exports to the Korean market due to tariff preferences from the FTA between Vietnam and Korea.
Vietnamese businesses reunite at VIFW Autumn 2016: By the framework of the Vietnam International Fashion Week with the first Fall event in Hanoi on 3 November 2016 at Fortuna Hanoi Hotel, The Press Conference for the event took place with theme "Vietnamese fashion - Challenges and Opportunities in Context of Integration" with the participation of agencies, organizations and individuals operating in the field of fashion Pages from Vietnam and over the world. This is also the first time that VIFW coordinated with the Center for Investment, Trade and Tourism Hanoi to organize a seminar on the sidelines of the event to bring a more panoramic view of the Vietnamese fashion and the world and contribution to the development of the Vietnamese fashion industry in the near future. At the seminar, the guests gave their views and ideas on the fashion issues that are being considered, such as the current state of the Vietnamese fashion industry, the problems and the right direction to develop in the coming time. Beside solving concerns for delegates, the seminar is also a place for exchanges and learning between entrepreneurs and international fashion experts.
Textile and garment to win the domestic market: In the past 10 years, the textile and garment industry and footwear industry have always been on the top list of main export commodities in the country with the total export turnover of tens billion USD per year (42.5USD billion by 2015 and 48.5USD billionby 2016). However, due to difficulties as well as fluctuations in the world's consumption demand, export orders of enterprises continuously decreased. in the context of declining export markets while the domestic consumption increased on average from 10% to 15% per year so this is a great opportunity for textile and garment enterprises to continue to promote their products in the local market.
According to VITAS, With a population of more than 90 million people and the current level of consumption of textile and garment accounts for about 5-6% on the people's expenditures equivalent to about $ 3.5 billion which indicate that this is a very potential market for domestic firms and companies. However, gaining market share from 10% to 30% is very difficult for domestic enterprises. Because on the current market, smuggled goods, counterfeit goods, poor quality products are sold rampantly, even labeled as Vietnam high quality goods, brands and selected by many consumers. In addition, materials for domestic apparel industry have not met the requirements and mainly imported with high tax rate so the products are difficult to compete with smuggled and unknown origin. Recently, some enterprises have focused on promoting domestic market, but the effect is not high. Most of Vietnamese products were still inferior to foreign ones. In the rural market, there are still many types of footwear and clothing from China and some other countries in the near region.
Seen this opportunity, big fashion brands from large companies in domestic have had specific business strategies to exploit domestic market and succeed as May 10, Viet Tien, Duc Giang, Nha Be. Thus, attention and full exploitation of the domestic market are effective solution for the textile industry currently and in the future. In order to increase the integration and competition in the domestic market, the enterprises must continuously innovate of both management methods and machinery, equipment and improve quality with lower cost of production. Especially when Vietnam joins in many new FTA agreements, it is sure that the competition is more fierce therefore enterprises must be proactive from raw materials to skilled workers so they can survive and develop.
Textile needs breakthrough from the complete supply chain: According to VITAS, 2016 was a difficult time for textile industry compared to previous years. With the current situation, the target of export turnover of the entire industry in the year was likely to reach 28.5 billion USD instead of 31 billion as expected. It is predicted that the textile and apparel industry will get more difficulty until the end of the third quarter of 2017.
"The challenge for the textile and garment industry is that the management technology of our enterprises weaker than other countries in the region especially in the moment of strong integration nowaday. If we fail to catch up with the management and technology of the region, we will lose opportunities for development" said VITAS Chairman - Mr Vu Duc Giang.
The restriction of Vietnamese enterprises is more competitive compared to other companies in Cambodia, Bangladesh because they enjoy lower tax rates when exporting to the US market, Europe. In addition, In addition, nowadays textile and garment products face a number of technical barriers, trade remedies in some countries, as well as shortage of delivery time and unrelenting labor costs
In particular, the impact of Viet Nam's policy and mechanism has not kept pace with the current situation of the textile and apparel industry. Vietnam textile and garment industry is mainly strong in export processing such as cutting, sewing, but very weak in the upstream of fiber, weaving, dyeing ... This is the main reason that domestic textile and garment industry get difficulty to compete with partners
Therefore, the Vietnamese textile and garment industry is calling for enterprises to invest in the complete supply chain by establishing new enterprises in the knot of knitting, weaving, dyeing and finishing. Vietnam's conclusion of the FTA negotiations with the EU after the signing of an FTA with Korea and the signing of the TPP Agreement have brought many opportunities for enterprises to invest to support the industries. In the context of consumer market showing signs of saturation but requirements on design and quality of products are higher while still getting low price orders has forced enterprises to increase labor productivity, to make strong involvement in global supply chain and give more investment in new, modern manufacturing technology which is a top priority solution.
VTEC has been recognized as a priority enterprise in the field of customs: By Decision 3768 / QD-TCHQ, the General Department of Customs decided to recognize the priority enterprise for VTEC (Tan Binh Dist, HCMC), The duration of the preferential regime is 36 months. After the above time limit, the extension of the preferential regime shall continue if the company meets the prescribed conditions. With the recognition of this priority, VTEC will be entitled to preferential regimes: Exemption of inspection of documents, exemption of physical inspection of goods; Clearance by incomplete declaration; Prioritizing the order of customs procedures; Specialized testing; Tax procedures; Export procedures in place; Post-clearance checks. VTEC is one of the six garment enterprises and is the 56th enterprise recognized as a priority in the field of customs. In 2015, the revenue of this enterprise reached 6,311 billion VND and the plan of 2016 reached the revenue of 6,700 billion VND. Exports of the Company focus on the main markets are Japan, USA, EU ... The goal of the Company strive to achieve export turnover of $ 1 billion by 2020 with an average growth rate 15 years.
Textile can save more than $1 billion from logistics cost reduction: Currently, logistic fee costs nearly 1/3 price of each textile import-export product. Vietnam textile and garment can save more than $1 billion per year if the cost can be reduced. This number has been presentedby VLA at the annual meeting on 3 November 20116 between VITAS and the VLA. Every year, Vietnam exports a large amount of garments equivalent to over $ 20 billion, import fabric and material worth over $15 billion and over 1 million tons of cotton. However, textile and garment enterprises often find their own logistics companies, in order to export and import the goods. But the container only has one-way row of input or output, the rest empty space is not used for containing that make high-speed acceleration. So things to do to save on shipping cost and time is to find a way for textile and logistic companies to meet up b2b with each others. If business members in VITAS and VLA cooperate closely, cost estimates will fall by 10% equivalent to more than $1 billion. Another solution to reduce logistical cost which also get much consensus is to establish several shipping control centers. Instead of only exporting one container and bear high transportation costs, logistics companies will collect more goods from other textile companies to reduce shipping costs.
Human resources for ODM manufacturing: In the framework of Vietnam Textile and Garment Equipment Exhibition (HaNoi Tex 2016) on 03 Nov 2016 in Hanoi, Vietnam Textile and Garment Group (Vinatex) n co-operation with Hanoi Textile and Garment Industry University organised the workshop "Human Resources for ODM Manufacturing".
The workshop attracted a large number of enterprises in the Vietnam Textile and Garment industry to attend. Mr Hoang Xuan Hiep - Headmaster of the Hanoi Textile and Garment Industry University said that Vietnam's textile and garment industry faces many difficulties and challenges in terms of orders, export markets and higher wages.
Therefore, the method of production in the coming years for the textile and apparel industry will be the ODM to replace the traditional method of processing (CMT) with little added value. From now on, Vietnamese garment enterprises should prepare the steps to produce ODM, OBM and the first step is to invest in human resources. The most important and least expensive step to start with ODM. The seminar provided methods for the business to minimize the risk of switching to ODM.
At the workshop, participants had chance to listen to presentations and discuss about: Overview of human resources for ODM manufacturing; Human resources for fashion design; Human resources for the design of stereotypes; Human resources for the development of samples; Human resources for supply chain management, merchandiser order management.
Vietnam joins Australia's largest apparel & footwear trade fair: The International Sourcing Expo took place from 15-17 November 2016 in Melbourne, Australia. This is Australia's largest fair of apparel & leather footwear held every year since 2001. The participating countries came from China, India, Indonesia, Malaysia, Hong Kong, Taiwan, Pakistan, Bangladesh, Sri Lanka, Turkey, Mauritius and Vietnam. There were about 700 booths in this fair with 213 booths in the International Sourcing Expo, 336 booths in the China Clothing & Textiles Expo and 336 booths in the China Clothing & Textiles Expo.
Vietnam participated in the fair with 05 booths of leather goods from Vietnam Trade Office in Australia, Vietnam Leather and Footwear Association, Chinh Viet Co Ltd, Phong Chau Co Ltd and Phong Phu Joint Stock Company. During the three days of the fair, many enterprises visited the showrooms of Vietnam to discuss business cooperation opportunities. Also on the occasion of the fair, the Trade Department held a meeting between the Vietnamese enterprises participated and with the Vietnam Businessmen Association in Australia.
Vietnam-Thailand Textile and Garment Exchange: 23 November 2004 in HCMC, VCCI cooperated with Thai Garment Manufacturers Association (TGMA) to hold the "Vietnam - Thailand Business Exchange" for textile and accessory and dyeing chemical. There are 13 enterprises specializing in textile, accessory and dyeing chemicals sector. At the meeting, Thai enterprises have been present and exchanged with Vietnamese enterprises, which are manufacturers, distributors, representatives and wholesalers of canvas products, chemicals, accessory and machinery related for exchange ways to expand cooperation between companies from 2 countries
Open Ceremony the 16th international exhibition of machinery and equipment for Textile and Garment Industry - VTG 2016: On the morning of 23 Nov 2016 at the Saigon Exhibition & Convention Center (SECC), Vinexad with Paper Communication Exhibition Service (Hong Kong), Yorkers Trade & Marketing Service Co Ltd (Hong Kong) and Chan Chao International Co Ltd. (Taiwan) jointly held the 16th International Exhibition of Machinery, Equipment, accessory for Textile and Garment Industry - VTG 2016. This is an annual event held in Vietnam which gathered many Domestic and international businesses come from other countries and near territories with well-developed textile industry. Attending There are nearly 550 booths of 400 companies from 20 countries and near territories such as Vietnam, Australia, Thailand, China, Germany, Hong Kong, India, Japan, Korea and especially the pavilions come from Germany, Japan, China, India, Hong Kong and Taiwan ... with famous brands such as: Juki, Brother, Pegasus, Pfaff, Hashima, Summit, Kansai, Siruba, Tajima ... and big domestic companies such as Viet Tien Tung Shing, Lien Viet, Nhat Tin, Viet Tin, Thien Hiep ... to display textile machines, sewing machines, printers, accessory for the textile and apparel industry, embroidery equipment, inspection and control equipment, chemicals and dyes, textile and apparel accessory, printing technology on fabrics. In addition, there are some famous brands like Heinz Walz silk printers with the highest accuracy and the largest printing size produced in Germany; Dye-sublimation high-speed Dye Sublimation Dyeing Machine in Korea; Automatic punching machine ...
International Exhibition of Textile Printing Equipments and Technologies in Vietnam - TEXPRINT 2016: In the morning of 07 Dec 2016 at the Saigon Exhibition and Convention Center (SECC), VIETFAIR and VIETKLA Allallinfo Media Group jointly organized the "International Exhibition of printing equipment and technology in textile embroidery in Vietnam - VIETNAM TEXPRINT 2016" and "International Exhibition of digital inkjet printing - VIETNAM SIGN 2016". This is an annual event held in Vietnam, gathering many domestic and international companies from countries and territories with textile industry developed. There are more than 450 booths of over 250 exhibitors from other countries and territories such as Switzerland, Japan, Hong Kong, Taiwan, Singapore, Korea, China and Italy with famous brands. Exhibited at the exhibition are modern machines and equipments specialized in embroidery and printing on fabrics with the most modern and advanced technology along with the yarn, weaving and dyeing machinery; Printing, embroidery and sewing lines; Software design; NPL, fabric, yarns and technological solutions in textile, embroidery and sewing
NBC won the "National Brand" 2016: Being a company was awarded National Brand 5 times, it demonstrates the good results that Nha Be Garment Corporation (NBC) achieved as well as positive contributions to society in recent years. This also represents NBC strong commitment and determination in the process of accompanying the country for social-economic development. Ms. Tran Thi Thu Hien said: This is NBC's great pride when 5 times was selected as National Brand. The title expressed a good appreciation of the community, partners and customers with NBC products. In order to achieve the above results, NBC always pioneered the application of advanced technology from Japan and the United States ... in the production and management to creating outstanding garment value worth with quality criteria - innovation - creativity - competence - pioneering.
Viet Tien fashion mark in the country of Elephant: Laos Fashion Week (2016) ended in Vientiane in the second half of the third quarter of 2016 made a big impression in the hearts of fashion lovers from the elephant country. President of Laos Fashion Week, Ms. Pany Saignavongs commented: "I find the fashion industry of Vietnam has gone too far and achieved many goals. Your country has highly skilled workers with hard-working ethics and creative Vietnamese designers. Particularly, an unforgettable mark in the event was the appearance of Viet Tien fashion, a Prominent brand of Vietnam Textile and Garment Industry. Beside gaining much success from the retail market of Viet Tien branded products, a further goal that Viet Tien Corporation A further step that Viet Tien Corporation has reached is direct sewing uniforms for the administrative agencies, careers and companies of Laos such as Unitel, Lao Toyota, BFL Bank, STB Bank, PetroVietnam PV Oil ... This confirms the right strategy of the Board of Directors of Viet Tien Garment Corporation.
Sourced by VITAS
