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Each day TFO Canada publishes a sample of trade news on the Canadian import market along with any new, updated or changed regulations and legislations regarding international trade; countries in which TFO Canada offers services and on the export sectors which it promotes.

 

Vietnamese garment sector to improvise production methods

Wednesday, November 12, 2014 > 10:03:39
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(Fibre 2 Fashion)

The garment and textile sector of Vietnam is set to redesign its production methods in order to retain its position as one of the top garment producers in the global market, Vietnam News reported.

Le Tien Truong, the general director of Vietnam Textiles and Garment Group (Vinatex), said that after years of manufacturing processed products, Vietnamese garment enterprises had gained much experience in manufacturing, management, and labor which serves as a foundation for the garment firms to shift to FOB (freight on board) and original design manufacturer (ODM) models.

Vinatex would soon implement the ODM model, which will allow the company to define the chain linkage of dye-textile-garment and improve its business effectiveness index and operations to meet production targets for the domestic and international markets, Le Tien Truong said.

Nguyen Xuan Duong, the chairman of the management board of Hung Yen Garment Corporation Joint Stock Company, said the textiles, garment, and the dyes sectors need to work together in order to implement the ODM model.

However, to work with the ODM model, the garments and textiles sector have to overcome their weaknesses in the areas of product development, marketing and chain linkage, as well as set targets for the sector and draft a material industry development plan, Nguyen said.

Dang Phuong Dung, general secretary of the Vietnam Textile and Apparel Association (VITAS), said inspite of a 19 percent year-on-year increase in Vietnamese garment exports, these are still highly dependent on imported materials.

Dang said only 30 percent of fibre produced in Vietnam could be used by the textile industry as much of the fibre quality remains below standard. Vietnam presently meets only one percent of the domestic demand for cotton and 20.2 percent of demand for textiles.

Sectoral participation in the global supply chain is passive as the local garment sector is mainly focused on manufacturing processed products and lacks product model designers. Businesses that produce processed products are also passive in seeking and expanding markets, Dang said.

Ho Thi Kim Thoa, the Deputy Industry and Trade Minister of Vietnam, said the current world trend in garments includes the development of a package supply chain and e-commerce trading, both of which remain a challenge to Vietnam.


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