What should textile and garment enterprises do to escape the export processing model?

(HTV) - After many years of only doing outsourcing for foreign brands, Vietnamese textile and garment enterprises are gradually finding a way out of that "loop" - aiming for self-design, self-branding, greening - digitalizing production to affirm their position in the global market.

Escaping the processing "loop" - a matter of survival for Vietnamese textiles

Until now, most Vietnamese textile and garment enterprises have entered the global playing field through the only way: export processing . As soon as there is an order, they produce, and if they meet the customer's standards, they will have revenue. Although safe, this model results in very little added value and Vietnamese brands are always behind the names of others.

Workers work on a production line at a textile factory in Vietnam - where many businesses are trying to shift from outsourcing to designing and building their own brands.

Now, a quiet but powerful shift is taking place: many Vietnamese textile and garment enterprises no longer want to be “hired workers”. They want to design, build their own brands, and enter the market with their own identity .

Step out of your comfort zone

For the past 20 years, Thien Thanh Binh Embroidery Garment Company has only been familiar with processing orders for foreign partners. But now, they have decided to change direction. Ms. Nguyen Tran Thien Thanh - Director of Thien Thanh Binh Embroidery Garment Company, shared: "In addition to the export sector, we are now developing the domestic market. Combining experience in producing export goods with understanding the domestic market to create a solid 'tripod' - not dependent on the processing sector alone".

Ms. Nguyen Tran Thien Thanh - Director of Thien Thanh Binh Embroidery Company

Not just one, but many businesses in the textile and garment industry have the same mindset: "escape outsourcing" to master the future.

Changing mindsets - but more is needed

According to Dr. Pham Thi Hong Phuong - Executive Director of Ecotech Village - Vietnam National Techfest, the first change comes from the shift in thinking of business owners. “Many businesses have begun to gradually abandon the mindset of working for hire. They maintain processing orders to ensure cash flow, while simultaneously building their own brands. I encourage Vietnamese businesses to have two channels: processing and creating their own brand names - so that the world can see that we are not just working for international brands."

However, thinking alone is not enough. To have a brand, Vietnamese enterprises need to meet new standards of the global market.

Greening - Digitalization: Conditions to step out into the world

Automatic production line in textile factory, demonstrating the technological transformation efforts of Vietnamese enterprises

According to Ms. Le Nguyen Trang Nha - General Director of Viking Vietnam Co., Ltd., the sustainable development trend is the "key" for the textile and garment industry. " If businesses only follow the direction of export processing, it is no longer a long-term path. The textile and garment industry must now 'green - digitalize' according to the ESG trend, meeting the requirements of origin, added value, creativity and product improvement. Only then will Vietnamese brands have a foothold ."

Aiming for Vietnamese brands to reach regional level

According to Mr. Pham Van Viet - General Director of Viet Thang Jean Company Limited, Vice President of the Ho Chi Minh City Textile and Fashion Association, Vietnamese enterprises are gradually shifting from the OEM (processing) model to ODM - OBM, which means self-designing and self-branding. "From now until 2030, we aim to become an enterprise with an export brand, at least in the Asia region. We expect that by 2030, the localization rate will reach 60-70% - so that Vietnam is not just a factory, but a place to create real brands."

Quitting outsourcing - not just economic, but honorable

Moving from manufacturing to branding is not easy. It is a journey that requires capital, technology, people, and a long-term vision. But only when we step beyond that “safe zone”, will the value truly stay in Vietnam.

Workers work at the garment factory, focusing on completing products to meet export order deadlines.

Escaping the shadow of outsourcing is not only an economic choice, but also a choice of honor, so that the world knows Vietnam not only as the "global factory", but also as the land of international brands.

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Source: https://htv.com.vn/doanh-nghiep-det-may-can-lam-gi-de-thoat-khoi-mo-hinh-gia-cong-xuat-khau-222251029112556797.htm