Want to be in the loop?
subscribe to
our notification
Business News
TEXTILE APPAREL SECTOR LOSING ADVANTAGE IN PRICE COMPETITION
Many producers in the textile apparel sector are on tenterhooks as export orders are increasingly shifting to other countries like Bangladesh or India for more favourable pricing. Thanh Cong Textile Garment Investment and Trading JSC (TCM) incurred shortages of export orders from the second quarter (Q2) of this year, leaving its factories running below their capacity.
Tran Nhu Ting, chairman of TCM, revealed that the reopening of the Chinese market had resulted in an augmented supply, fuelling competition, while demand had yet to increase.
“The local textile and apparel sector faces stiff competition from Bangladesh where the labour cost is low, and its home currency is depreciating stronger than Vietnam’s dong,” said Tung.
At the annual general shareholders meeting (AGM) 2023 of state conglomerate Vinatex over a month ago, chairman Le Tien Truong noted that the current wage of labourers in the sector fetches around $300 per capita per month, much higher than that of Bangladesh at $95 per capita per month.
Pham Van Viet- deputy chairman of Ho Chi Minh City Association of Garment Textile Embroidery and Knitting, added that aside from lower labour costs, Bangladesh has reached 4.0 technology with high automation in this sector, while most equipment and technology in this sector in Vietnam was at the traditional level.
He said that in Bangladesh, the textile apparel sector was being oriented as a spearhead sector for investment, so that businesses in the sector were eligible for reduction and exemption of corporate income tax and tax for technology innovation, whereas in Vietnam, the sector was deemed as traditional and labour-intensive, and was no longer considered a spearhead sector as in the past.
The current incentives offered to producers are therefore insignificant. In this context they are deploying a suite of measures to bolster development.
At Viet Thang Jean Co., Ltd., after struggling in H1, the company is stepping into Q3 with boosted competitiveness as its products had acquired ‘green’ standards from materials to technology, coupled with better pricing thanks to digital transformation.
A company representative said that Viet Thang Jean had applied Technology 4.0 into complex phases leveraging cutting-edge equipment like laser and ozone machines, colour sprayers, automated drying lines, and others.
All the equipment items have been imported from Europe, helping to save manpower cost by 85 per cent, leading to a lower price.
Tong Thi Tra My, deputy CEO of Navitex International Co., Ltd., unveiled that the company was coming up with a wide range of cost-saving measures, such as curtailing 30 per cent of office operation cost, slashing 30 per cent of manpower and sheering 20-30 per cent in profit to enhance competitiveness for each item.
Source: VIR
Related News
![Card image cap](/uploads/Logo/Cathay%20%281%29.jpg)
EXPLORE HONG KONG WITH A COMPANION
From now until 19 August 2024, you can enjoy our exclusive Fly 2 Hong Kong offer on round-trip Economy flights from USD364^ for 2 persons, sponsored by Hong Kong International Airport. Bring along a travel buddy and experience together the excitement and charm of our vibrant home city.
![Card image cap](/uploads/news/Factory%201.jpg)
BUSINESSES INCREASE WISHES FOR SPECIALISED INDUSTRIAL PARKS
Data centres, industrial parks (IPs) reserved for high-tech production, and parks serving Chinese, the United States, Taiwanese, or Japanese investors are gradually being formed to welcome new funding waves, according to Truong An Duong, general manager of North Vietnam and Residential at Frasers Property Vietnam.
![Card image cap](/uploads/news/economic.jpg)
VIETNAM’S H1 ECONOMIC GROWTH QUITE IMPRESSIVE: ADB COUNTRY DIRECTOR
Country Director of the Asian Development Bank (ADB) for Vietnam Shantanu Chakraborty has expressed his impression of the Southeast Asian nation’s economic growth of 6.4 per cent in the first half of this year. The growth was mainly driven by strong trade recovery, where export grew by 14.5 per cent and import by 17 per cent over last year, he told the Vietnam News Agency. However, he said, the domestic segment remained sluggish.
![Card image cap](/uploads/news/Infrastructure13.jpg)
REAL ESTATE FIRMS AGGRESSIVELY RESTRUCTURING BOND DEBT
From the start of 2024 to July 5, the market saw 133 private placements and ten bond public offerings, totalling over VNĐ140 trillion. 65.6 per cent of this value was from the banking sector, while real estate bonds accounted for only 24.6 per cent, or over VNĐ34.5 trillion.
![Card image cap](/uploads/news/Eco2.jpg)
GOV’T UNVEILS ACTION PLAN TO ACCELERATE INDUSTRIALISATION
Vietnam aspires to become among the top three industrial powerhouses in ASEAN, with the industrial sector contributing over 40 per cent to GDP. The manufacturing and processing sector is expected to account for around 30 per cent of GDP, with a strong emphasis on high-tech products aiming for over 45 per cent of the sector's value. To further drive the economy, the service sector is projected to contribute over 50 per cent to GDP, with tourism alone generating 14-15 per cent.
![Card image cap](/uploads/news/Industrial%20Zone.jpg)
VIỆT NAM TARGETS FULL MOBILE BROADBAND COVERAGE ON HIGHWAYS, INDUSTRIAL ZONES BY 2025
By 2025, Việt Nam aims to achieve one hundred per cent mobile broadband coverage on all national highways, expressways and railways under a plan to enhance the quality of Việt Nam’s mobile telecommunications network by 2025, which has been approved by the Ministry of Information and Communications (MIC).