3:26:19 PM | 7/8/2005
Vietnam Textiles and Garments: International Competitiveness and Domestic Sales
Deputy Minister of Trade Luong Van Tu said that the US rated the competitiveness of Vietnam’s textiles and garments fourth in the world, after China, India and Pakistan.
Tu said that the US rated China top in terms of competitiveness with an overwhelming advantage in machine, material and cheap labour costs. However, China is subjected to discriminatory policies on its textiles and garments within the World Trade Organisation (WTO). It is now asking for the removal of such policies.
India holds second place thanks to its 150 year-long tradition in the international market. This is one of the most important industries for the country’s economy, accounting for 20 per cent of industrial output. India is carrying out a programme on modernising its textile industry with an investment of US$6 billion and is adjusting its policies on foreign investment. The country is expected to earn US$50 billion from textile and garments export by 2010.
Pakistan is rich in cotton material supplies with a developed textile industry, accounting for 46 per cent of the country’s industrial output and employing 38 per cent of its labour force. Pakistan is carrying out a programme on building textile urban areas in major cities, such as Lahore, Karachi, Faislabab, and is expected to earn US$13.8 billion in 2005.
Vietnam is highly respected for its well-trained, disciplined, diligent, skilful and low cost workers. Vietnam has also been praised for its open State management agencies in listening to inputs and comments of enterprises to adjust unsuitable regulations. Le Van Thang, deputy director of the Import and Export Department, under the Ministry of Trade, said that in the first months of this year, more and more foreign investors invested in Vietnam’s textile and garment industry because of the great potential. However, because Vietnam has yet to become a member of the WTO, it will continue to suffer at the hands of quotas after January 1, 2005. This situation is evidently reducing the competitiveness of Vietnamese enterprises.
The Viet Nam Textile and Garment Corporation (Vinatex) announced that it would open thousands of sales outlets nationwide to sell almost half of its output, striving to raise revenues from this market of around 30 per cent of the total.
Its first half revenues saw a 2.5 fold on-year increase thanks to its efforts to promote sales in existing supermarkets and the opening of two new ones in central Thanh Hoa and southern Binh Duong provinces.
Founded two years ago, the Vinatex fashion centre specialises in providing over 12,000 garment and textile products made by 60 members of the Vinatex group.
Vinatex has expanded its investment in the Vinatex Can Tho supermarket and the Nguyen Tat Thanh trade centre while opening some others in Vinh Long and Pleiku. It has also broadened the network of agents of its member enterprises.
Determination to dominate the domestic market is an understandable strategy of the Vietnam textile and garment industry as its exports currently face many difficulties and the country may not achieve its target of US$4.25 billion in the textile and garment export turnover this year.
Vietnamese
