Want to be in the loop?
subscribe to
our notification
Business News
TOUGHER COMPETITION FOR APPAREL SECTOR AHEAD
In fact, apparel enterprises have seen competition intensifying in recent times. Some producers performed well in 2014 but have failed to win contracts this year while their employees have left for bigger firms.
“Despite preparations since 2013, we’ve faced cutthroat competition since last year,” Dung said.
He noted that apparel exports have been swelling, from US$25 billion in 2014 to an estimated US$28 billion this year, but some companies have won less orders than expected over the past months, including foreign-invested enterprises.
Dung suggested local companies manage to participate in the value chains to take advantage of the country’s deeper integration into the world; otherwise, they will have to close or sell their factories.
Around 30,000 textile and garment companies have generated jobs for a large number of local laborers and contributed around 15% of the nation’s total export revenue. Vietnam is among the top five apparel exporting countries by volume.
Nonetheless, Vietnam is still heavily dependent on material imports.
Vinatex general director Le Tien Truong said the sector aims to raise its outsourcing ratio to 50% by 2020 compared to 38% currently. The localization ratio targets are 60% this year and 70% in 2020 versus around 50% last year.
Vietnam’s textile and garment industry targets exports of US$50 billion by 2020.
Truong said as the nation needs to import over US$12 billion worth of material each year, there is huge potential for the investors of material production on the domestic market.
According to experts, foreign enterprises are speeding up investments in the sector to take advantage of the upcoming FTAs, including the Trans-Pacific Partnership (TPP). Many companies from China, Hong Kong, Taiwan, Japan and Korea have spent big on garment and textile projects this year.
With around 650 local and foreign enterprises taking part, the four-day expo at Tan Binh Exhibition & Convention Center in Tan Binh District lasts until Sunday.
Source: Business Times
Related News
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.
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.
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.
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.
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.
VIETNAM ONE OF FASTEST-GROWING E-COMMERCE MARKETS IN SOUTHEAST ASIA
The report released on July 16 highlighted that the total GMV of Southeast Asia’s eight leading e-commerce platforms rose to $114.6 billion in 2023, up 15 per cent from 2022. The key drivers for the region's e-commerce GMV expansion in 2023 are Vietnam and Thailand, growing 52.9 per cent and 34.1 per cent on-year, respectively.