Vietnam can significantly increase export of garment and textiles ifit joins bilateral free trade agreements and multilateral ones like theTrans-Pacific Partnership, but only if it can set up a robust supplychain.
The problem has dogged the industry fornearly 20 years but remains unresolved despite local firms' efforts tocreate the chain.
Three-fourths of the country's3,000 garment and textile companies are domestically owned, but theyaccount for a mere 25 percent of exports.
FDI firmshave invested in setting up their own supply chain to take advantage ofincentives, resulting in immense value addition for them andprofitability.
Garment and textile exports aregrowing at 18 percent annually, with the foreign sector chalking up 30percent growth and their local rivals, 8 - 10 percent.
The gap in growth between local and foreign companies is growing wider and wider.
Their limited funding has meant Vietnamese textile and garment firms work mainly as subcontractors.
To become actual producers, local firms must link the supply chainmade up mainly of cotton, fibre, textile, dyeing, and apparel.
The textile and dyeing aspects are the weakest points yet and a big hurdle to export efforts.
The Vietnam Garment and Textile Corporation (Vinatex), a leadingplayer, has been investing strongly to develop the supply chain.
In the past each of its factories produced many different itemsdepending on customers' demand, but could not maintain high quality.
"We have decided each fibre factory will focus on one only product andensure quality," Le Trung Hai, deputy general director of Vinatex,said.
It plans to build a series of plants to make quality products so that it can have its own supply chain and take on new markets.-VNA
The problem has dogged the industry fornearly 20 years but remains unresolved despite local firms' efforts tocreate the chain.
Three-fourths of the country's3,000 garment and textile companies are domestically owned, but theyaccount for a mere 25 percent of exports.
FDI firmshave invested in setting up their own supply chain to take advantage ofincentives, resulting in immense value addition for them andprofitability.
Garment and textile exports aregrowing at 18 percent annually, with the foreign sector chalking up 30percent growth and their local rivals, 8 - 10 percent.
The gap in growth between local and foreign companies is growing wider and wider.
Their limited funding has meant Vietnamese textile and garment firms work mainly as subcontractors.
To become actual producers, local firms must link the supply chainmade up mainly of cotton, fibre, textile, dyeing, and apparel.
The textile and dyeing aspects are the weakest points yet and a big hurdle to export efforts.
The Vietnam Garment and Textile Corporation (Vinatex), a leadingplayer, has been investing strongly to develop the supply chain.
In the past each of its factories produced many different itemsdepending on customers' demand, but could not maintain high quality.
"We have decided each fibre factory will focus on one only product andensure quality," Le Trung Hai, deputy general director of Vinatex,said.
It plans to build a series of plants to make quality products so that it can have its own supply chain and take on new markets.-VNA
