|Modern machinery on show at the Viet Nam Sai Gon Textile and Industry Garment/Fabric and Garment Accessories Expo (Saigon Tex 2014), which opened yesterday in HCM City. — VNA/VNS Photo Thanh Vu
HCM CITY (VNS)— The upcoming Trans Pacific Partnership (TPP) Agreement and other trade and tax agreements currently being negotiated have made the Vietnamese garment and textile market appealing for foreign textile and garment machinery manufacturers as well as fabric and accessory makers.
Evidence of that appeal was clear during the first day of the Viet Nam Sai Gon Textile and Industry Garment/Fabric and Garment Accessories Expo (Saigon Tex 2014), which opened yesterday in HCM City.
At the exhibition, more than 500 companies from 26 countries and regions are showcasing their most advanced technologies and accessories with the hope of widening their markets and seeking new clients from Viet Nam.
Speaking at the opening ceremony, the organisers said this was the first time that the Tan Binh Exhibition and Convention Centre had been fully occupied.
"The size of exhibition space had increased 30 per cent and the number of registered companies had surged by 40 per cent compared to last year," they said.
Le Trung Hai, the vice president of the Viet Nam National Textile and Garments Group, said the country had negotiated with many countries and regions to sign co-operation agreements, including the TPP.
Thus, Viet Nam will have to make a huge investment in sectors serving the garment and textile industry, he said.
"This is why more foreign machinery and accessory manufacturers are attracted to the sector. They have recognised this and are grabbing the opportunity," he said.
Moreover, the Vietnamese garment and textile sector has developed strongly, becoming one of the five biggest exporters in the world, he added.
Jeanologia, a Spanish company that offers technologies for garment finishing, especially jeans, is taking part in the expo for the first time.
Like other companies at the expo, it uses many new green technologies.
Jeanologia representatives called Viet Nam a "huge market".
The company has already sold technology to five firms in Viet Nam and plans to find an additional 10 when the exhibition ends.
"Today, the map of Asia textile production is shifting the balance in favour of Viet Nam, which is emerging as a centre of the world jeans production industry," said Enrique Silla, president of Jeanologia.
Borja Trenor, the company's area manager for the Asia Pacific region, said: "To base production only on low-cost labour is a thing of the past. We are convinced that the new commitment of Viet Nam to technology, efficiency and sustainable production will soon make Viet Nam the leading producer and exporter of jeans in Asia."
According to the Ministry of Industry and Trade, the textile and garment sector has consistently ranked high in export turnover among all industries in Viet Nam.
In recent years, the sector has achieved good growth and is competitive in domestic and world markets.
In 2013, export turnover reached US$20.4 billion, an increase of 18 per cent year-on-year.
Exports accounted for $19.8 billion, up by 17 per cent year-on-year, accounting for 15 per cent of national total export turnover.
Viet Nam Sai Gon Fabric and Garment Accessories Expo 2014
Time: Thursday April 10 to Sunday April 13
Address: Tan Binh Exhibition and Convention Centre in Tan Binh District
Organisers: Viet Nam Textile and Garment Group, Viet Nam Chamber of Commerce and Industry Exhibition Services Company and Hong Kong's CP Exhibition
Seminars: The prospects for Viet Nam's textile and garment industry and the impact of the TPP trade agreement; the FTA between EU and Viet Nam: opportunities and challenges for the textile industry; Updating regulations of C/O for main export markets.