Proactively source fabric, improve competitiveness
In the context of the restructuring of the global supply chain, Vietnam's textile and garment industry is consolidating production from yarn and fabric to finished products. Increasing localization, improving traceability and applying technology to create sustainable development space for this key export industry.
Mr. Nguyen Huu Phuc - General Director of Fadatech Joint Stock Company - said: "Fabric raw materials are very important and Vietnam has a very large textile and garment labor force. If foreign businesses do not come to China, they will come to other countries, including Vietnam.
Recently, Vietnam has strongly developed fabric production, including domestic and foreign companies producing. Regarding traceability from yarn and fabric, Vietnam has been increasingly improved compared to before. Therefore, foreign businesses when coming to Vietnam still have available fabric raw materials, so production conditions are very favorable when taking fabric and sewing directly on the spot.
Reality shows that the production structure of Vietnamese textile and garment enterprises is clearly shifting, when the proportion of orders according to the method of purchasing raw materials - semi-finished products and self-designing and developing products is gradually increasing compared to the processing stage. Along with that, investing in domestic yarn, weaving, and dyeing helps improve traceability "from yarn, from fabric", creating advantages when taking advantage of signed free trade agreements.
When we are proactive in domestic fabric sources, we significantly reduce logistics costs and increase competitiveness" - Mr. Pham Xuan Hong - Chairman of the Ho Chi Minh City Textile, Garment and Embroidery Association, informed.
According to Mr. Hong, there are about 7,000 textile and garment enterprises operating nationwide. Many enterprises have applied enterprise resource planning systems, real-time production management systems, computer-based diagram design - trigonometry, three-dimensional design and digital printing to shorten production time, receive small orders and deliver quickly.
Export growth amid global challenges
According to Mr. Bui Quang Hung - Deputy Director of the Trade Promotion Agency, Ministry of Industry and Trade, although last year was a year of overcoming difficulties for the textile and garment industry, the export turnover of the entire industry reached 46 billion USD, an increase of about 5% compared to 2024. The garment group continues to play a leading role, accounting for over 38 billion USD of total export turnover.
Statistics show that Vietnamese textile and garment products are currently present in 138 markets around the world. Among them, the US is still the key market with an estimated turnover of over 18 billion USD, an increase of about 10%.
Mr. Hung emphasized that the above results were achieved thanks to the efforts to remove difficulties for businesses by the Government and ministries and branches. Along with that are in-depth trade promotion activities and tireless efforts of businesses in the industry in proactively diversifying markets, effectively utilizing Free Trade Agreements (FTAs), effectively exploiting tariff preferences, transitioning to green, sustainable production and improving technological capacity.
However, before the fluctuations of the global economy, Vietnam's textile and garment industry is forced to continue to innovate, adapt and break through. Through connecting textile and garment companies from all over Asia, Europe..., it is also a solution to create motivation to help Vietnam's textile and garment industry transition from traditional production to green and smarter production.
