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Vietnam: Vinatex urges garment sector to retain market positionThursday, November 06, 2014 > 12:16:37
The garment and textile sector in Vietnam has to work towards maintaining its market position, in order to prevent declination, according to Hoang Ve Dung, the deputy general director of the Vietnam National Textile and Garment Group (Vinatex), the Vietnam News reported.
Dung advised the local garment and textile industry to focus on improving their marketing strategies and boost trade promotion, to maintain existing customers and retain the financial status of the textile sector.
He said that business plans should be strictly aimed at maintaining the textile industry’s existing market share. To this end, domestic businesses should become more proactive by participating in public events such as fashion shows and exhibitions.
The Vietnamese garment sector is facing fierce competition from Bangladesh, India and Indonesia, which have more material and labor resources. Local garment and textile businesses have been greatly affected by other nations, especially China, which can lower product prices to attract customers.
But the Vietnamese businesses have already started renovating their methods of production from outsourcing activities to Freight on Board and an Original Design Manufacturers model, which is a step in the right direction, Dung said.
Free trade agreements between Vietnam and the EU and the Customs Union of Russia, Belarus and Kazakhstan, and the Trans Pacific Partnership (TPP) bring hope for the future of the Vietnamese textile and garment industry. As per the TPP, 90 percent of Vietnamese exports to countries in the TPP will not attract tariffs, which provides attractive opportunities to Vietnamese industry.
These agreements will open up future opportunities for the sector, but first businesses need to focus on improving their competitiveness, Dung said.
Vietnamese garment and textile exports jumped 18.9 percent in the first nine months of 2014 to US$ 15.5 billion, mainly due to growth in traditional markets such as the US, the EU, Japan and the Republic of Korea.
Vinatex raised around VND1.22 trillion or US$ 58.10 million through an initial public offering (IPO) in September, 2014. Vinatex, which has around 120 subsidiaries, has targeted an export turnover of $3.6 billion by 2015 and $5 billion by 2020.