Indian textile exhibition kicks off Wednesday

HCMC – Twenty four Indian companies will display their latest range of fabrics and yarns in a two-day exhibition in the Rex Hotel in HCMC from Wednesday.  

The Indian textile exhibition is organized by the Synthetic and Rayon Textiles Export Promotion Council of India in collaboration with the Vietnam Chamber of Commerce and Industry (VCCI). It’s the sixth Indian textile exhibition held in the city in the last few years.

“Indian textile companies have some advantages as they can supply big orders as well as small-volume ones,” Srijib Roy, joint director of the Indian council, said in a meeting with local media on Monday to introduce the exhibition.  

Roy said they could meet demand of garment companies in fast changing fashion markets. Besides, Indian companies can change their products designs upon buyers’ request.  

Abhay Thakur, consul general of India in HCMC, said Vietnam’s textile imports from India this year increased four times compared with last year. In the first half of this year, Vietnam imported US$115 million worth of Indian textile products compared to US$25 million in the year-earlier period.

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More garment businesses expand scale

A dozen of garment and textile enterprises, mostly in northern region,
have been investing in expanding production since 2009 in a trend that
is forecast to be continued, said experts from the Vietnam Garment and
Textile Group (Vinatex).

Analysing the positive trend, Nguyen Van Thoi, General Director of the
Thai Nguyen Investment and Trade Company (TNG), said the world’s garment
and textile suppliers are shifting their attention from China to
Vietnam and in the country, the market is moving from the south to the
north due to more labour competitiveness.

In addition, customers
now tend to directly connect to suppliers instead of through
intermediaries such as international contractors and retail groups, thus
creating opportunities for development for Vietnamese garment firms,
including TNG.

Recently, TNG invested 210 billion VND (11 million
USD) in building its fourth plant, which is scheduled to be put into
operation in the first quarter of 2011, bringing the company’s total
sewing chains to 172, making it one of the country’s leading garment
suppliers.

The TNG leader said that the investment was based on
long-term and stable commitments and orders from its customers,
including those from the US and Canada like Columbia ,
Sportswear, The Children’s Place and Capital.

After this project,
TNG plans to invest further in its equipment with the aim of taking on
more steps of international garment orders by 2015, Thoi said.

Earlier,
the Nha Be Garment Joint Stock Corporation, which has 22 garment
factories and eight trading companies, invested trillions of VND in
nearly 10 projects despite fluctuation in the market. Two of them, with a
combined investment capital of over 200 billion VND (over 10 million
USD) will become operational late this month.

The new investment
is expected to raise the company’s export turnover by between 20-25
percent this year, said Duong Thi Ngoc Dung, President of the Board of
Directors of Nha Be.

According to experts, increasing investment
in expand production is necessary at a time when Vietnam still has
many advantages in sub-contracting. However, for sustainable
development, enterprises should invest in supporting industries like
materials processing, textile and dying in order to switch from
sub-contracting to selling products of their owned designs.

Garment
and textile have been Vietnam ’s leading export items with turnover
hitting nearly 10 billion USD a year for the past two years.

In
the first eight months of the year, the garment and textile sector
earned almost 6.9 billion USD from exports, a 17.8 percent increase over
the same period last year and is expected to earn 10.5 billion USD for
the whole year./.

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More garment businesses expand scale

A dozen of garment and textile enterprises, mostly in northern region, have been investing in expanding production since 2009 in a trend that is forecast to be continued, said experts from the Vietnam Garment and Textile Group (Vinatex).

Analysing the positive trend, Nguyen Van Thoi, General Director of the Thai Nguyen Investment and Trade Company (TNG), said the world’s garment and textile suppliers are shifting their attention from China to Vietnam and in the country, the market is moving from the south to the north due to more labour competitiveness.

In addition, customers now tend to directly connect to suppliers instead of through intermediaries such as international contractors and retail groups, thus creating opportunities for development for Vietnamese garment firms, including TNG.

Recently, TNG invested VND210 billion (US$11 million) in building its fourth plant, which is scheduled to be put into operation in the first quarter of 2011, bringing the company’s total sewing chains to 172, making it one of the country’s leading garment suppliers.

The TNG leader said that the investment was based on long-term and stable commitments and orders from its customers, including those from the US and Canada like Columbia , Sportswear, The Children’s Place and Capital.

After this project, TNG plans to invest further in its equipment with the aim of taking on more steps of international garment orders by 2015, Thoi said.

Earlier, the Nha Be Garment Joint Stock Corporation, which has 22 garment factories and eight trading companies, invested in nearly 10 projects despite fluctuation in the market. Two of them, with a combined investment capital of over VND200 billion (over $10 million) will become operational late this month.

The new investment is expected to raise the company’s export turnover by between 20-25 percent this year, said Duong Thi Ngoc Dung, President of the Board of Directors of Nha Be.

According to experts, increasing investment in expand production is necessary at a time when Vietnam still has many advantages in sub-contracting. However, for sustainable development, enterprises should invest in supporting industries like materials processing, textile and dying in order to switch from sub-contracting to selling products of their owned designs.

Garment and textile have been Vietnam’s leading export items with turnover hitting nearly $10 billion a year for the past two years.

In the first eight months of the year, the garment and textile sector earned almost $6.9 billion from exports, a 17.8 percent increase over the same period last year and is expected to earn $10.5 billion for the whole year.

 

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Opportunities for garment, footwear industries

Photo: Tuoi Tre

As China took the second rank in world economies from Japan, experts described the event as an opportunity for small economies depending on outsourcing, including Vietnam.

Experts predict that China would reduce outsourcing activity in industries using large numbers of workers, such as garment and textiles, and boost development of products with high added value.

The country may lose its advantages of competitiveness in materials and low production costs and face pay increases.

Diep Thanh Kiet, Deputy President of the Vietnam Leather and Footwear Association, forecast that with cheap labour costs, Vietnam would be able to take a large volume of orders in garment and textile, leather and footwear and furniture.

Until now, most Vietnamese garment and textile exporters had enough orders for 2010, and some stopped receiving new orders to give priority to already signed contracts. In addition, prices of export items increased 15 percent over last year in US, Japanese and European markets.

The increase in Vietnam’s export turnover is also credited to the country’s implementation of economic and trade agreements with other countries.

Vietnam’s garment and textile exports to the Republic of Korea increased 80 percent thanks to the tax reduction under the ASEAN-RoK Free Trade Agreement. Meanwhile, the Vietnam-Japan Economic and Trade Agreement helped Vietnam’s garment and textile exports to Japan increase 15 percent over the same period last year.

In the first eight months of this year, Vietnam earned nearly US$6.9 billion from garment and textile exports.

Kiet said that many customers selected Vietnamese footwear instead of Chinese ones for their high quality and reasonable prices.

The country obtained an export turnover of more than $3.2 billion from footwear exports, a year-on-year increase of 18.8 percent. Of this figure, almost $700 million was earned from the US.

However, Kiet showed his worry about the capacity of Vietnamese enterprises if they receive orders transferring from China, which exports about 8 billion pairs of shoes a year. He said for Vietnam to take just 10 percent of that amount, local footwear industry must double its production capacity.

For the garment and textile sector, the lesson will be the same. This means the sector must increase its capacity by 2.5 times to receive 10 percent of orders from China. In 2009, China exported $150 billion worth of garments and textiles, while Vietnam exported $9.2 billion.

To take those opportunities, experts said Vietnamese garment and textile and footwear industries must promptly overcome outstanding problems in human resources, materials and technology to raise capacity and the competitiveness for their products.

 

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Opportunities for garment, footwear industries

As China took the second rank in world economies from Japan,
experts described the event as an opportunity for small economies
depending on outsourcing, including Vietnam.

Experts predict
that China would reduce outsourcing activity in industries using
large numbers of workers, such as garment and textiles, and boost
development of products with high added value. The country may lose its
advantages of competitiveness in materials and low production costs and
face pay increases.

Diep Thanh Kiet, Deputy President of the
Vietnam Leather and Footwear Association, forecast that with cheap
labour costs, Vietnam would be able to take a large volume of orders
in garment and textile, leather and footwear and furniture.

Until
now, most Vietnamese garment and textile exporters had enough orders
for 2010, and some stopped receiving new orders to give priority to
already signed contracts. In addition, prices of export items increased
15 percent over last year in US, Japanese and European markets.

The
increase in Vietnam’s export turnover is also credited to the
country’s implementation of economic and trade agreements with
other countries. Vietnam’s garment and textile exports to the
Republic of Korea increased 80 percent thanks to the tax reduction
under the ASEAN-RoK Free Trade Agreement. Meanwhile, the Vietnam-Japan
Economic and Trade Agreement helped Vietnam’s garment and textile
exports to Japan increase 15 percent over the same period last year.

In the first eight months of this year, Vietnam earned nearly 6.9 billion USD from garment and textile exports.

Kiet said that many customers selected Vietnamese footwear instead of Chinese ones for their high quality and reasonable prices.

The
country obtained an export turnover of more than 3.2 billion USD from
footwear exports, a year-on-year increase of 18.8 percent. Of this
figure, almost 700 million USD was earned from the US.

However, Kiet showed his worry about the capacity of Vietnamese
enterprises if they receive orders transferring from China, which
exports about 8 billion pairs of shoes a year. He said for Vietnam
to take just 10 percent of that amount, local footwear industry must
double its production capacity.

For the garment and textile
sector, the lesson will be the same. This means the sector must increase
its capacity by 2.5 times to receive 10 percent of orders from China. In 2009, China exported 150 billion USD worth of garments and
textiles, while Vietnam exported 9.2 billion USD.

To take
those opportunities, experts said Vietnamese garment and textile and
footwear industries must promptly overcome outstanding problems in human
resources, materials and technology to raise capacity and the
competitiveness for their products./.

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