Textile and garment exports in 2015: Focusing on production and human resources

With a series of FTAs ​​as well as other trade agreements, which are expected to be signed in 2015, especially TPP, VN-EU FTA… the textile and garment industry is preparing to receive new opportunities when setting export targets for the year. 2015 reached about 28-29 billion USD.

Positive signals from bilateral and multilateral FTA negotiations, TPP… are clearly an important attraction for buyers and investors to Vietnam’s textile and garment industry.

Traditional market – accelerated

Traditional export markets all grew well in 2014, such as Vietnam’s textile and garment exports to the US market continued to achieve good growth. If compared with other competitive countries in the US market, we will see that Vietnam continues to achieve the leading growth rate with double digits, while other countries have a slight increase or even negative growth. The market share of Vietnam’s textile products in the US reached 8.4%, up 0.6 percentage points compared to 2013. It is forecast that Vietnam’s textile and garment exports to the US in 2015 will continue to achieve good growth, up 13 % compared to 2014, reaching over 11 billion USD.

With the EU market, in 2015, if the Vietnam – EU FTA is signed, the growth of Vietnam’s textile and garment exports to the EU will prosper, similar to the case of Bangladesh, which has grown strongly to the EU since enjoying tax incentives. GSP. It is forecasted that in 2015, Vietnam’s textile and garment export turnover to the EU will maintain its growth momentum and reach over 4 billion USD.

The increased investment by Japanese investors in the production of raw materials and accessories in the textile and garment industry in Vietnam has given the Vietnamese textile and garment industry the opportunity to take advantage of the rules of origin and gradually meet international standards. technical and environmental when exporting to Japan. In 2015, it is forecast that Vietnam’s total textile and garment export turnover to Japan may reach 2.9 billion USD, up 9% compared to 2014.

Meet the new requirements

As analyzed above, with the characteristics of the FTAs ​​that are about to come into effect, all of them are interested in the origin of yarn (TPP), from fabric (EU) and are also suitable for the strategy of raising prices. added value and a higher position in the global supply chain. The preparation activities to best meet the new requirements of the textile industry will revolve around 3 key contents:

First, invest in the production of knitted and woven fabrics. In particular, in the two years 2015 – 2016 alone, Vinatex and its subsidiaries focus on investing in concentrated material production zones including: Pho Noi B Industrial Park with the core being 8-3 Textile Company investing in the production of industrial woven fabrics. capacity of 25 million meters per year, expanding the existing knitting factory from 3000 tons to 5,000 tons per year, investing in a yarn factory with a capacity of 5,800 tons per year; Khoai Chau Industrial Park, specializing in making light knitwear, invested in a factory with a capacity of 3,000 tons per year, a yarn factory of 3,000 tons per year…

In addition, Vinatex also invested more in 2 years on 200 sewing lines. Accordingly, by 2016 the total capacity of producing woven fabrics from local yarn sources will increase by over 100 million meters (an increase of 40% compared to the current capacity); knitted fabrics increased by 20,000 tons per year (double the current capacity); yarn of all kinds by 29,000 tons per year (increasing by 25% of current capacity). With the above investment programs, from 2017 Vinatex can take the initiative in over 55% of fabrics of all kinds in its enterprise chain. The total investment is estimated at nearly 9,000 billion VND.

Secondly, Vinatex has now established a new Sales Center and restructured the function of the Group’s market division from purely consulting to doing business. Concentrating business for investment group projects and linking the chain of enterprises in the group. The first orders have now begun. Orienting mainstream enterprises to gradually switch to FOB 2 and ODM orders, having priority in negotiating the use of the group’s raw materials, signing commitments to offload fabric products for projects.

Third, prepare human resources, thereby forming training centers for senior and middle managers of the corporation in the South and North. Develop training programs for factory managers for a period of 3-6 months. In addition, continuing to recruit and train additional projects. Including foreign experts in dyeing and finishing management to arrange at key projects in Hoa Khanh, Pho Noi, Nam Dinh, Yarn dyed Xuyen A…