Vietnam's apparel and textile manufacturers strive to occupy the domestic market

Mr. Vohanhan Thu, an advisor to the International Trade Policy Committee of the Vietnam Chamber of Commerce and Industry, said that export revenue from clothing and textiles has increased year by year. However, all apparel and textile businesses rely on imported materials. Sixty percent of the materials serving the clothing and textile sector are imported from foreign countries. 60% of commercial units manufacturing clothing and textiles are produced according to orders and designs of foreign companies. As a result, the clothing and textile sectors create less volatile values.

Most Vietnamese garment exports are boss-intensive products. Domestic commercial units did not penetrate into the global supply chain and only operated on a small scale. Therefore, it is very difficult for them to enter the market.

Li Jinchang, deputy manager of Vietnam International Apparel and Textile Group (Vinatex), said that by 2012 Vietnam's clothing and textiles will face difficulties in the export market, due to the debt crisis in Europe and the United States. Clothing consumption in other markets will decline. For Vietnam's clothing and textile business, this will create more difficulties.

The motivation of the clothing and textile sector

In order to promote the development of the clothing and textile sector, Vietnam National Apparel and Textile Group recently launched a development plan for the department to 2020. According to the plan, this department will achieve export revenue of 25 billion U.S. dollars and generate 3 million jobs. In 2011-2020, this sector will grow by 12-14% annually and export revenue will increase by 15%. By 2020, fiber consumption will reach 650,000 tons/year, fabrics will consume 2 billion square meters per year, and apparel production will reach 4 billion tons per year.

In addition, Mr. Lai Jin-Chang also stressed that it is necessary to increase the proportion of domestic ingredients in clothing and textile products to increase their value. In 2010, the proportion of domestic components of Vinatex products reached 49%. The department is working hard to increase this figure by 60% in 2015 and be able to supply raw materials to all stages. It is estimated that by 2014, the fiber sector will meet 60-70% of domestic demand by establishing a DinhVu fiber production plant and establishing afforestation projects in Laos. The department conducted investigations in Cambodia and Canada, implemented other afforestation factories, and provided materials for clothing and textiles.