Textile and garment enterprises solve the problem of 'origin' and have autonomy in the supply chain

Facing strict pressure from the rules of origin of new generation FTAs and the reality of “good sewing, weak yarn”, the Vietnamese textile and garment industry is forced to promote self-reliance in supporting industries. In that picture, Vinatex Phu Hung, the core unit of the Vietnam Textile and Garment Group in Thua Thien Hue, is emerging as a typical example of proactive raw material sources, effectively adapting to integration requirements.

Formerly known as Phu Hung Yarn Factory, established in 2014 in Phu Bai Industrial Park, the enterprise is now operating about 44,400 spindles, including Factory 1 (21,600 spindles) and Factory 2 (22,800 spindles), with a supply capacity of about 1,000 tons of yarn per month, equivalent to nearly 12,000 tons per year.

The highlight of Vinatex Phu Hung is not in mass production but in the orientation of specializing in high value-added yarn lines. The main products are CVC and TC yarns, along with CVCM, CVCD, TCCM, TCCD, COCD and recycled yarn lines, meeting high technical requirements and the trend of "greening". Yarns have mainly counts from Ne 20 to Ne 40, suitable for high-end knitting and weaving.

*Vinatex Phu Hung's modern spinning machine system. Photo: Vinatex Phu Hung*

To ensure quality, the company invests in modern equipment from Switzerland, Germany, and Japan; applies a strict quality management system with OEKO-TEX Standard 100, USA Cotton License, and COTTON Trust Protocol certificates. Thanks to that, the company's fiber products not only serve the domestic market but are also exported stably to Korea, Taiwan, the Philippines, Japan, Malaysia, Indonesia, Portugal, Spain, and South America.

Vinatex Phu Hung also plays an important role in completing the textile value chain of Vinatex and of Vietnam. Because Vinatex Phu Hung is the direct "solution" to the problem of rules of origin. FTAs such as EVFTA and CPTPP bring huge tariff advantages, but only when Vietnamese garment products can prove the origin of raw materials "from yarn onwards" or "from fabric onwards". Relying on imported yarn and fabric from countries outside the FTA bloc makes Vietnamese enterprises "lose right at home". By providing high-quality yarn "Made in Vietnam", Vinatex Phu Hung helps domestic textile and garment enterprises meet the rules of origin, thereby fully enjoying tariff incentives, improving competitiveness in a sustainable way.

In parallel, the enterprise is also a link in the strategy of building a closed supply chain from fiber - weaving - dyeing - sewing, aiming to provide a complete solution with full traceability. At the same time, Vinatex Phu Hung promotes investment in sustainable production, linking the development of recycled fibers with energy and waste management according to international standards.

In 2024, the company's revenue will reach 107.87% of the plan, up 11.99% compared to 2023; export turnover will reach 100.84% of the plan, up 8.93%; pre-tax profit will reach VND 9,867 billion. The target for 2025 is revenue of more than VND 806 billion, export turnover of 29 million USD, profit of VND 10.5 billion.

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