Vietnam Promotes Its Textile Competitiveness In The International Market

Although it was affected by the global financial crisis and the European debt crisis in 2012, Vietnam Spin The industry is still the leading enterprise in the country's economic recovery and growth, playing a major role in ensuring the trade balance based on export based development mode.

Vietnam? clothing Export status of textile industry

Despite many difficulties, Vietnam's textile industry continued to grow rapidly and steadily in 2012, and continues to be the leading export industry in the country. The total export volume of clothing, textiles and yarns was 17 billion 200 million US dollars, an increase of 8.5% over the same period last year. Clothing and textiles exports amounted to 15 billion 800 million US dollars, an increase of 12%. In the export volume of $17 billion 200 million, Vietnam imported only $8 billion 800 million of raw materials, while about 50% of the original raw materials were produced in Vietnam. This shows that Vietnam's clothing and textile industry's prestige and competitiveness in the international market are increasing.

Vietnam Textile Association (Vitas) said Vietnam has been the world's top ten exporter of garment textiles, and the textile industry is also a major industry in Vietnam's export earnings, making an important contribution to increasing national revenue. Another major success of Vietnam's textile industry is to provide employment opportunities for 2 million 200 thousand people across the country. The per capita monthly income is nearly 5 million.

In the domestic market, the clothing and textile industry has become the largest and the largest economic sector in Vietnam. There are 4000 enterprises, with a turnover of US $20 billion, equivalent to 15% of GDP, and also a leading export industry, accounting for 18% of total exports. Vietnam has become the world's top five exporter of clothing and textiles.

In the international market, as of now, Vietnam's clothing and textiles have been spread all over the world in 180 countries and regions, conquering the picky market of the United States, Europe, Japan and South Korea. Vietnam's largest export market for clothing and textiles is the United States, Europe and Japan. In the first 11 months of 2012, Vietnam exported $6 billion 800 million of clothing and textiles to the United States, accounting for 49.5% of the total exports over the same period, and exported 1 billion 790 million dollars to Japan, an increase of 16.8% over the same period last year. South Korea has become an emerging market for export of garment and textile products, with great potential and strong consumption capacity. Meanwhile, exports reached 1 billion US dollars, up 20.9% over the same period last year.

Accession to the WTO and the signing of the free trade agreement, the elimination of trade barriers such as quota restrictions in the United States and other countries, the equality of tariffs among member countries, and more opportunities to own and use advanced technology, information, services and management experience, create great opportunities for the development of Vietnamese garment textiles.

　 Difficulties faced

although Vietnam? The textile industry has made some achievements, but the net added value is not high. Clothing and textiles exports are US $15 billion 90 million, but we import nearly US $11 billion. The net added value is only about $4 billion 90 million. At the same time, it also faces the following difficulties and restrictions:

First, there is a lack of raw materials. In 2012, textile enterprises continued to face huge restrictions on raw materials and excipients. Most of the raw materials needed for production still rely on imports. Domestic raw materials production can only meet the textile industry's 30% production demand, so the net added value of the industry is difficult to improve. Although self productivity increased by 3-5 percentage points per year, it reached 49% in 2012, but still far below India's 90% and China's 95%.

Two, the bank loan interest rate is high, financing difficulties. In 2012, Vietnamese enterprises had to bear high interest rates of up to 12%-15%, resulting in a decline in competitiveness and high cost. The cost of investment for international textile enterprises is only 3% - 4%. Compared with Vietnamese enterprises, they have greater advantages in terms of cost. It can be said that compared with other enterprises in 2012, Vietnam textile enterprises' biggest shortcoming is high cost and difficult financing.

Three is the increase in input in production. at present textile Sales prices did not rise, but the input and expenditure increased, and there was a trend of sustained growth. Production expenses such as steam, oil, electricity and manpower increased. Social insurance and medical insurance increased. Due to increased investment and Vietnam no longer enjoy the most favored nation standard, the partners began to transfer orders to Kampuchea and Burma to enjoy the preferential treatment. At present, the textiles produced in Kampuchea can enjoy tariff free treatment all over the world. This is also the most important reason for importers to transfer orders from Vietnam to other countries. Four, labor productivity is low. Although textile enterprises have begun to pay attention to labor productivity quality management, compared with traditional methods, they have achieved initial success. But labor productivity is still lower than that of some countries and regions in the region, which is only equivalent to 1/3 in Hongkong, 1/4 in China and 1/8 in Korea. This will have a greater impact on cost and reduce product competitiveness.