The textile and garment industry "accelerates" restructuring the supply chain, prioritizing investment in domestic raw materials to improve self-sufficiency - Photo: QUANG DINH
Textile and garment enterprises agree that they cannot continue to rely on the traditional processing model or depend on external sources of raw materials. To survive and develop sustainably, they must proactively adapt and transform more strongly.
Proactive supply chain
According to Mr. Tran Nhu Tung - Chairman of the Board of Directors of Thanh Cong Textile - Investment - Trading Joint Stock Company (TCM), the enterprise has soon shifted to a closed production chain, self-sufficient from cotton import, spinning, weaving, dyeing to cutting and sewing, thereby not depending on raw materials from a specific country. Thanks to that, the enterprise can prove the domestic origin of the product, an important factor in minimizing tariff risks.
"If it can be proven that 100% of input materials originate from Vietnam, the export tax to the US will be significantly reduced," said Mr. Tung, but admitted that most domestic textile and garment enterprises are small and medium-sized, so they are still in the form of simple processing, while raw materials still depend on imported sources.
Sharing the same view, Mr. Pham Quang Anh, Director of Dony Garment Company, assessed that in the context of increasing geopolitical instability, investing in localization is no longer an option but an "inevitable requirement". According to him, the ability to be self-reliant will become a strategic weapon for businesses to survive and develop sustainably in the face of unpredictable fluctuations.
"We are still in the "trying to do" stage, not yet in the "must do" state. But only when forced into a situation can people do extraordinary things," said Mr. Quang Anh, and at the same time raised the question: "If we don't start now, when will we reach the destination?"
"Cheap" is no longer an advantage
Vietnam's textile and garment industry wants to increase the localization rate. In the photo: clothing trading at Ben Thanh market (HCMC) - Photo: TU TRUNG
From the perspective of industry associations, Mr. Pham Van Viet, permanent vice president of the Ho Chi Minh City Textile, Garment, Embroidery and Knitting Association, said that the Vietnamese textile and garment industry is facing an urgent need to restructure the supply chain towards domestic integration, moving towards reducing dependence on imported raw materials from potentially risky foreign markets.
Mr. Viet especially emphasized the "domestic nearshoring" model - developing a closed production chain within the country, including from yarn - weaving - dyeing - finishing to logistics and green finance. Ho Chi Minh City, with its existing infrastructure and resources, can take the lead by forming a green fashion industrial park that meets ESG standards, integrating a quality control center, logistics, e-commerce and carbon finance tools.
"The textile and garment industry cannot maintain the FOB (made-to-order) model forever - which has low profit margins and is easily replaced by lower-cost countries such as Bangladesh and Myanmar," Mr. Viet analyzed. Accordingly, the survival path for businesses is to shift from FOB to ODM (custom-made design), moving towards OBM (building and trading private brands in the global market).
However, to make the above transformation, Mr. Viet believes that an "overhaul" of policies and management thinking is needed. The State needs to shift from an administrative management role to creating an ecosystem, in which businesses are not isolated but are closely connected from raw materials, production, design to logistics and e-commerce.
"We cannot continue with the old way of doing things. The Vietnamese textile and garment industry must enter a new phase - proactive, creative and sustainable. Only when we master the brand, technology and supply chain data, can we truly have a voice in the global market," Mr. Viet affirmed.
Textile and garment exports maintain stable growth momentum
Although the market in the first 5 months of 2025 still faced many challenges in terms of consumption and tariffs, textile and garment exports still recorded stable growth. According to the Vietnam Textile and Apparel Association, the industry's total turnover reached nearly 17.6 billion USD, up 9% over the same period in 2024; garments alone reached 13.82 billion USD (up 11.6%), fabrics increased by 6%, while fibers decreased slightly.
The US continued to be the largest export market with nearly 7 billion USD (up 17%). Other key markets such as the EU, Japan, and ASEAN all recorded double-digit increases. Currently, Vietnamese textile and garment products are present in 132 countries and territories. Experts assessed the above achievements as the result of businesses' efforts to adapt flexibly in the context of the volatile world economy .
Taking advantage of the 17 signed FTAs (of which 16 are in effect), businesses are stepping up to meet the rules of origin to enjoy tax incentives. Many businesses expect to complete 2/3 of their annual profit plans in the third quarter to prepare for upcoming fluctuations.
Source: https://tuoitre.vn/det-may-muon-tang-tu-chu-nguyen-lieu-20250710080626073.htm
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