Vietnam’s garment exports off to a good start

Orders placed with garment factories in the first days of the Lunar New Year herald a bonanza for the garment sector, boosted by breakthroughs created by the Trans-Pacific Partnership (TPP) Agreement, reported radio The Voice of Vietnam (VOV).

Members of the National Textile and Garment Group (Vinatex) customarily place their orders in the first three months and this year’s rise bodes well for 2014 being an opportunistic year for Vietnam tapping into the burgeoning global garment market.

Garment orders

Over recent days, the Duc Giang Garment Company has been busily packing products for export to the EU, the US and Japan. Workers at its 20 factories in Hanoi, Thai Binh, Ha Nam, Thanh Hoa, Thai Nguyen and Hoa Binh provinces are in a cheery rush to fill the orders on the first days of the Year of the Horse.

Many other garment businesses are also sanguine about the prospects for exports this year. They are actively searching for quality domestic materials to reduce dependence on imports, mindful of the need that domestic suppliers ensure delivery of goods on schedule.

This contributes to improving the competitiveness and is attracting more orders from well-known trademarks in Spain, Germany, the UK, the US and Japan.

The Dong Tien Garment Joint Stock Company is not only focusing on keeping its traditional clients but also pursuing expansion into new markets with specialty designed products, such as clothes for skiing, elastic coat and underwear.

Particularly, the TNG Trade and Investment Joint Stock Company has invested heavily in promoting its brand and building a domestic distribution network with clothes for teenagers. The TNG brand is now gaining popularity across the country and is favoured by many young people.

Garment 10 Company Director General Nguyen Thi Thanh Huyen says since early this year, the company has received a large number of orders for exports so it is stepping up production of high quality shirts in Thieu Do district, Thanh Hoa province and 12 others in Quang Binh province, as well as one production line to make luxury jackets in Thai Binh province.

Nguyen Ngoc Lan, Vice General Director of the Nha Be Garment Corporation, says like many other Vinatex members, Nha Be orders are up this year and it is hopeful exports will be better than the previous year.

A leading Vinatex member, the corporation has continually poured investment in production to meet the increasing demand of customers. European clients are shifting their original design manufacturer (ODM) products to Vietnam to reduce human cost in residing countries and save time, Lan says.

To seize the opportunity, Nha Be has built a sample unit to make ODM products for European clients only. It has drawn up a carefully thought out marketing plan and if it is successful, Nha Be and other garment makers stand to gain a competitive edge.

Quality growth

Vinatex General Director Tran Quang Nghi says the group has gradually reduced its dependency on imported materials for exports and promoted self-designed products to increase the added value of the products.

It has focused on quality improvements, helping the group move to a higher position in the global garment chain and businesses make full use of capital assets available.

Vinatex has obtained both targets of restructuring – market and investment efficiency, Nghi says.

Quality growth is a key task of Vinatex this year, he says, adding the group will keep export growth of 12 percent and raise ODM products from 10 percent in 2013 to 12-14 percent this year.

The group will expand its “lean” manufacturing method which has been successfully applied in some businesses to reduce inventory and raise competitiveness, Nghi says.