Adding value to the fashion industry

Although Vietnam is currently in the top 3 exporting countries in the world for textiles, garments and footwear, the value of these two industries is still low.

Production of textiles for export at Nam Dinh Textile and Garment Joint Stock Corporation.

Besides mainly receiving garment processing, little investment in modern machinery, the textile and garment industry   shoe leather   still have to depend on more than 60% of imported raw materials, so when the supply is interrupted, businesses will be affected.

To promote the development of the fashion industry, it is necessary to soon form zones and clusters.   industrial   chain investment, especially establishing chain development research centers; design, fashion shows, etc.

Many knots

In the early 1990s, the Vietnamese fashion industry, such as textiles and footwear, mainly processed for Eastern European countries. After that, businesses began to seek their own markets and gradually shifted exports to Western European countries. By the end of 2000, textile and footwear export turnover reached more than 3.2 billion USD, accounting for about 35% of Vietnam's export turnover, of which textiles reached 1.8 billion USD, and footwear reached more than 1.4 billion USD. Industry   fashion   Vietnam has transformed strongly, becoming one of the five main export industries of Vietnam.

Up to now, the textile, garment and footwear industry continues to be a key industry of the economy with 16,348 enterprises, creating jobs for nearly 5 million workers, accounting for 22% of the industrial workforce; contributing significantly to the development of the labor market, employment and social security. The export turnover of textiles, garments and footwear in 2024 will reach more than 71 billion USD (textiles and garments over 44 billion USD, footwear over 27 billion USD), with an average growth of 10%/year, accounting for nearly 16% of Vietnam's total export turnover and aiming to exceed the 100 billion USD mark in the coming period.

Over the past 40 years, the fashion industry has become one of the key economic sectors. Chairman of Gia Dinh Group Nguyen Chi Trung said that, in addition to the achievements, there are still many bottlenecks that prevent the fashion industry from catching up with domestic and foreign demands. Faced with rapidly changing fashion trends, especially the increasingly high and strict requirements of partners and brands, in order to meet market demand and make the most of opportunities from free trade agreements that Vietnam has signed, businesses must invest in modern equipment, master the supply of domestic raw materials and accessories, and avoid dependence on imports from foreign countries. "Only by doing so can we increase product value, enhance competitiveness, and at the same time limit negative impacts and avoid adverse effects from changes in mechanisms and policies brought about by some major markets," Mr. Nguyen Chi Trung emphasized.

Business Director of Bao Minh Textile Company Pham Quang Hai also affirmed: Although the export turnover of the Vietnamese fashion industry always accounts for more than 10% of the total export turnover of goods nationwide and the country is the third largest textile, garment and footwear exporter in the world, the value is low because most businesses do outsourcing, depend on customer orders and import from outside. That not only limits the initiative to create and develop designs of domestic factories, but the advantage of cheap labor will also gradually disappear in the next few years. Therefore, it is necessary to quickly resolve the bottleneck of raw materials to help businesses proactively produce as well as increase opportunities for linkage, cooperation in product development and promote export of goods. Along with that, provinces, cities and the State need to have support mechanisms, attract investment in the fields of fibers, weaving, dyeing, and product finishing so that businesses can confidently invest and increase operational efficiency.

Improve competitiveness

On December 29, 2022, the Prime Minister issued Decision No. 1643/QD-TTg approving the Strategy for the development of Vietnam's textile, garment and footwear industry to 2030, with a vision to 2035, clearly defining the goal of developing the industry effectively and sustainably according to the model.   circular economy; perfecting the domestic production value chain, effectively participating in the global value chain; developing a number of regional and world-class brands. To implement the above strategy, the Vietnam Textile and Apparel Association (Vitas) and the Vietnam Leather, Footwear and Handbag Association (Lefaso) have submitted a solution to build a research center to develop the Vietnamese fashion industry supply chain for the period 2026-2030 with the goals of connecting and developing the fashion supply chain; displaying, introducing, testing new raw materials and technologies... However, up to now, the project is still only in the research and planning phase - from there to reality there is still a long way to go.

Lefaso Chairman Nguyen Duc Thuan emphasized that the export target of more than 100 billion USD requires the textile and footwear industry to take into account the problem of proactively sourcing raw materials and accessories, and to achieve a domestic raw material ratio of about 70-80% within the next 5 years at the latest. Only then can we cut down on intermediaries, reduce costs, increase product value and improve competitiveness in the market. Mr. Nguyen Duc Thuan also proposed that the Government should boldly create a breakthrough mechanism so that the textile and footwear industry can have a center for developing, producing and displaying raw materials, as well as a research center, laboratory, etc.

According to Vice President of Vitas Than Duc Viet, one of the important contents in Decision No. 1643 of the Prime Minister is to develop the supporting industry as well as the centers supplying raw materials for the textile and footwear industries. However, after more than 2 years, the implementation process is currently relatively slow.

Director of the Department of Industry (Ministry of Industry and Trade) Tran Viet Hoa acknowledged that it is necessary to focus on building a research center to develop the supply chain of the Vietnamese fashion industry to transfer technology and act as a bridge between businesses and foreign markets.

Source: https://baoquangninh.vn/nang-gia-tri-cho-cong-nghiep-thoi-trang-3367642.html