To realise the goal of boosting exports with more depth, in 2014, the Vietnam National Textile and Garment Group (Vinatex) will focus on producing and exporting high quality textile and garment products and reduce the usage of imported materials. Report by the Vietnam Economic News.
In 2013, Vinatex maintained the central role of the textile and garment industry as it contributed 2.915 billion USD to the sector’s export revenue, posting a 12 percent growth compared with 2012.
According to Vinatex permanent Deputy Director Le Tien Truong, this was not a matter of concern and the figures have not shown the in-depth development of the group.
To date, Vinatex’s exports have reduced the usage of imported raw materials and increased its own designed products. Therefore, despite the decline in the number of products and less strong increase in export revenues, the added value was higher.
“That Vinatex’s pre-tax profit last year increased by 22 percent compared with 2012 has proved this,” Truong said.
Boosting export in terms of quality has helped the group rise to a higher level in the global textile and garment value chain.
According to Vinatex General Director Tran Quang Nghi, the group has completed both targets of its restructuring plan (markets and investment), improved investment efficiency and better grasped the competitive advantage offered by its labour force and its experience in making difficult products.
The initiative to source materials from the group’s attached companies also contributed significantly to its increased export value last year. Currently, the group’s localisation rate is 60 percent, higher than the average rate of the whole textile and garment industry, originating from its efforts to invest in material projects over recent years, especially its 22 projects (out of total 42 projects of the whole sector) in 2013.
Moreover, the 12 percent growth of the group was more appreciable amid modest import growth of its major and traditional markets such as the US up by 3 percent, the EU 0.52 percent, and Japan down by 0.54 percent.
In particular, some company members of the group had to overcome difficulties and achieved impressive export growth.
Truong said: “Qualitative growth continues to be Vinatex’s key task in 2014.”
Accordingly, the group will strive to maintain its export growth of 12 percent as what it did last year. It will focus on raising the Original Design Manufacturer (ODM) rate to 12-14 percent compared to 10 percent in 2013. It will also continue to adopt Lean production solution to minimize inventories, increase labor productivity and competitiveness of the products.
In terms of investment, Nghi said 2014 would be the boom year for Vinatex with 57 projects. The majority of these projects will deal with developing raw materials such as two plants to make solid dyed yarn at capacity of 40 million metres per year and two other plants to make dyed yarns a capacity of 12 million metres per year.
These are the preparatory steps to keep increasing localization rates and also a necessary condition to pre-empt opportunities when the Trans-Pacific Partnership agreement is officially signed.-VNA
In 2013, Vinatex maintained the central role of the textile and garment industry as it contributed 2.915 billion USD to the sector’s export revenue, posting a 12 percent growth compared with 2012.
According to Vinatex permanent Deputy Director Le Tien Truong, this was not a matter of concern and the figures have not shown the in-depth development of the group.
To date, Vinatex’s exports have reduced the usage of imported raw materials and increased its own designed products. Therefore, despite the decline in the number of products and less strong increase in export revenues, the added value was higher.
“That Vinatex’s pre-tax profit last year increased by 22 percent compared with 2012 has proved this,” Truong said.
Boosting export in terms of quality has helped the group rise to a higher level in the global textile and garment value chain.
According to Vinatex General Director Tran Quang Nghi, the group has completed both targets of its restructuring plan (markets and investment), improved investment efficiency and better grasped the competitive advantage offered by its labour force and its experience in making difficult products.
The initiative to source materials from the group’s attached companies also contributed significantly to its increased export value last year. Currently, the group’s localisation rate is 60 percent, higher than the average rate of the whole textile and garment industry, originating from its efforts to invest in material projects over recent years, especially its 22 projects (out of total 42 projects of the whole sector) in 2013.
Moreover, the 12 percent growth of the group was more appreciable amid modest import growth of its major and traditional markets such as the US up by 3 percent, the EU 0.52 percent, and Japan down by 0.54 percent.
In particular, some company members of the group had to overcome difficulties and achieved impressive export growth.
Truong said: “Qualitative growth continues to be Vinatex’s key task in 2014.”
Accordingly, the group will strive to maintain its export growth of 12 percent as what it did last year. It will focus on raising the Original Design Manufacturer (ODM) rate to 12-14 percent compared to 10 percent in 2013. It will also continue to adopt Lean production solution to minimize inventories, increase labor productivity and competitiveness of the products.
In terms of investment, Nghi said 2014 would be the boom year for Vinatex with 57 projects. The majority of these projects will deal with developing raw materials such as two plants to make solid dyed yarn at capacity of 40 million metres per year and two other plants to make dyed yarns a capacity of 12 million metres per year.
These are the preparatory steps to keep increasing localization rates and also a necessary condition to pre-empt opportunities when the Trans-Pacific Partnership agreement is officially signed.-VNA
