Vietnamese textile products are mainly exported after they are processed into apparel. However, domestic cloth for the garment industry often fails to meet quality, delivery and price requirements. Additionally, foreign clients provide materials for Vietnamese outsourcing firms. This is the primary difficulty for the textile industry.
Previously, the Vietnamese textile industry was totally reliant on the Eastern Europe market, and faced challenges to its survival after losing this unique outlet. To date, the textile industry is gradually strengthening its equipment, focusing on the domestic market and partially providing for the export garment sector. With this development direction, the textile industry hopes to meet the domestic garment industry demands, although it may need quite a long time. During its development history, Viet Thang Textile Company sold partial stakes in three affiliated units: Garment Joint Stock Company, Dyeing Joint Stock Company and Textile Company.
Following Vietnam’s WTO admission, Viet Thang has made significant shifts. The company will make intensive investment in 2007- 2008, with major objectives being the specialization of the garment sector and the improvement of textile quality. After that, Viet Thang will seek capital sources for new factories like a fibre factory (from now to 2010), replace obsolete weaving machines with modern ones, improve service quality for dyeing factories, and guarantee quality for the garment market. The company hopes to export 60-80 per cent of its material from now until 2010, and receive big material orders for the garment industry.
Its Dyeing Joint Stock Company (with shareholders Viet Tien Corp, Nha Be Garment and Vinatex) plans to invest VND50 billion in more machinery and equipment to produce high-grade products. Besides, to improve the working capacity of Viet Thang staff and garment and textile industry staff in general, Vinatex has advocated opening managerial and technical training centres.
Viet Thang Garment Company specialises in manufacturing shirts, trousers, jackets and other items, with annual output of more than five million units a year, mainly for export to the US and the EU. The company also has a nationwide sales network. Especially, Viet Thang was awarded a strong brand name title in 2006.
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