VIETNAM BECOME FOCUS COUNTRY AT TRADESHOW SOURCING AT MAGIC

Over 40 of Vietnam’s manufacturers and resources will be at the forefront of the Sourcing at Magic show, which takes place this August. Show attendees will have the opportunity to see textiles, fibres, and garments from these Vietnamese factories, and talk with their representatives. The show chose Vietnam as their focus country because of the country’s rapid growth in export manufacturing, organisers report.
Vietnam become focus country at tradeshow “Sourcing at Magic”

According to a forecast by PricewaterhouseCoopers in February 2017, Vietnam may be the fastest-growing of the world’s economies, with a potential annual GDP growth rate of about 5.2%. This is partially due to the boom in jobs linked to growth in export manufacturing of textiles and garment products to over 180 countries and territories.

The industry has already begun to make significant investments in its textile manufacturing facilities. For example, Vietnam was the second biggest investor in shuttleless looms among member countries of the Association of South East Asian Nations (Asean) during 2006-15. Moreover, it was the biggest investor among these countries in ring spindles and open-end rotors.

There has also been a marked expansion in the knitting sector. The country now has a growing number of domestic knitwear and knitted goods producers, represented by state-subsidised enterprises, big factories, as well as small, family-owned companies.

 

Export and sourcing destination

Since Vietnam launched its economic renewal campaign to lift the country out of poverty in 1986 and normalised trade relations in the US in 2000, Vietnam has been able to export to a wider range of markets, rapidly expand exports in the manufacturing sector, and become an investment destination because of its large and capable workforce, whilst labour and operating costs remain low, compared to China.

In addition, Sourcing at Magic will host a Vietnam-focused seminar providing more information and exposure to the country’s capabilities and advancements. There will also be a VIP Cocktail Reception on 14 August, co-sponsored by Apparel Magazine and open to all attendees.

 

Vietnam continues to lure US firms

The event will feature a seminar called The Go-To Sourcing Destination: Vietnam Continues to Lure US Firms, which will take place on 14 August, moderated by Julie Hughes, President, The US Fashion Industry Association.

“Shifting global sourcing strategies affect fashion sourcing executives of all levels as they attempt to find the appropriate mix of regions, countries and product requirements. Vietnam has become a leading force in the US supply chain and the expert panel will explore the ins and outs of their experiences working in this world-class production hub,” organisers say.

Speakers include: Ron Klein, Director Retail & Consumer Management, PWC,  Chris Walker, Apparel Production Advisor/Author, Vietnam Garment Insider, Steve DiBlasi, VP Global Sourcing, Lanier Clothes, Avedis Seferian, President & CEO, World Responsible Accredited Production.

 

Source: VITAS

THE HIKE OF VIETNAM TEXTILE PRODUCTS PENETRATED THE RUSSIAN MARKET

In recent years, businesses of VITAS (Vietnam Textile & Apparel Association) have received many orders of the Russian enterprises request to sew products such as jacket, jeans … With the big demand by importing over USD 10 billion of textile and garment products each year and although Vietnamese garment still accounts for a small share in Russia, this is considered as a potential market for Vietnamese enterprises.

The garment-textile industry was predicted to get the most benefits when the free trade agreement between Việt Nam and the Eurasian Economic Union came into force in October 2016. — Photo baotintuc.vn

Textile and garment industry is considered as the most beneficial sector when the FTA between Vietnam and the Eurasian Economic Union (EEA) comes into effect recently and this is expected to generate a big boost for exports to the Russian market.

Textile and garment exports to Russia are expected to reach over $ 1 billion or 10% of the world market’s capacity in the next few years. Currently, Vietnam exports only about US $ 320 million worth of textiles annually, equivalent to more than 2% of the market share. This is not commensurate with the potential of Vietnamese enterprises and the size of the Russian market. Mr Vu Duc Giang – President of VITAS said that Russia has a rather cold climate so the Russian market has a great demand for such items as jackets, jeans, T-shirts, khaki… These are the items that garment enterprises receive the most demand in recent years.

However, the problem is how to import goods to the Russian market at the current competitive price. Because, the Russian economy is still difficult, the cost of exporting products to this market is not as good as the European Union market. Moreover, Mr Giang said that the geographic distance between Vietnam and Russia is quite far so it will be more difficult to do payment. Although BIDV branches have been opened in Russia for direct payment but in the future, if the volume of exports to Russia gradually increases then more branches will be needed to support direct payments.

 

Source: VITAS

VIETNAMESE TEXTILE SECTOR ATTRACTS $750 MN FDI IN H1

The Vietnamese textile and apparel industry attracted more than $750 million in foreign direct investment (FDI) in the first six months of 2017, mostly from investment capital increases in existing projects, despite a reduced number of FDI projects in recent years and the US withdrawal from the Trans-Pacific Partnership (TPP) last January.
Vietnamese textile sector attracts $750 mn FDI in H1
The years 2014 and 2015 are considered the most successful for FDI in the country’s textile industry. But the number of FDI projects in this sector decreased considerably from the beginning of 2016, a state-controlled English-language newspaper in Vietnam reported.
Except for the notable $220 million Chinese investment in a polyester synthetic fibre plant in the southern province of Tay Ninh, capital flows comprise mostly capital expansion investments in existing projects.
According to the Vietnam Textile and Apparel Association (VITAS), the southern provinces of Dong Nai and Binh Duong attracted the two projects with the largest investment capital increase in the textile industry in 2017.
In Binh Duong, Taiwan’s Far Eastern Group raised its investment capital by $485.8 million in its polyester and synthetic fibre production project, Far Eastern Polytex (Vietnam) Ltd. The project was initiated in June 2015 with a registered investment capital of $274 million. This capital push makes the project one of the biggest to be certified in 2017 and will push the total registered investment to about $760 million.
In the northern province of Bac Ninh, Samsung Display Vietnam registered a $2.5 billion capital increase in its projects. Taiwan’s Tainan Spinning Company Ltd, also increased its investment capital by $50 million in Long Thai Tu Spinning Factory at Long Khanh Industrial Zone in Dong Nai.
Tainan Spinning began constructing the Long Thai Tu Spinning Factory-Phase 2 at Nhon Trach 2 Industrial Zone in Dong Nai before the capital raise. The project, consisting of a main factory, four finished product warehouses, a garage for workers, and other auxiliary structures, began operation in 2016 end. The company plans to build its factories in Vietnam to take advantage of the country’s existing export markets.
According to VITAS vice chairman Le Tien Truong, textile projects attracting foreign capital after the United States withdrew from the TPP is a sign of conducive investment environment. The country’s textile and apparel industry still benefits from a number of free trade agreement, such as the Vietnam-EU FTA, the Vietnam-South Korea FTA, and the Vietnam-Japan FTA.
The value of garment and textile exports in Vietnam, one of the largest textile exporters in Asia, has increased 3.6 times in the last decade, from $7.78 billion in 2007 to $28.02 in 2016, accounting for 16 per cent of total export turnover. The industry is expected to grow by 7 per cent in 2017, reaching $30 billion in total export value.
Competitive labour costs and preferential policies have made Vietnam the ideal destination for investors in the textile industry in recent years. FDI in the last decade has helped the country turn one of the five largest textile and apparel exporters in the world. At the moment however, Vietnamese textile and apparel products account for a mere 3 per cent of the EU market. (DS)

Fibre2Fashion News Desk – India