Economy
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HCM City hosts international bakery exhibition
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| A sewing machine on display at the Hà Nội Textile & Garment Industry – Fabric & Garment Accessories Expo. — VNA/VNS Photo Trần Việt |
Viet Nam News
HÀ NỘI — The textile and garment industry is likely to face challenges in 2019 as the industry goes through a transition period which requires breakthroughs to shift its position in the global value chain.
This was the highlight of a seminar on the prospects for textile and garment exports held on Thursday within the framework of the three-day Hà Nội Textile & Garment Industry – Fabric & Garment Accessories Expo which will close today.
A representative from the Ministry of Industry and Trade said at the event that 2019 would continue to be a challenging year for the textile and garment industry.
The sector needed to make big changes to shift towards a new position in the global value chain, from Cut-Make-Trim (CTM) to Original Equipment Manufacturing (OEM)/Full Package/Free on Board (FOB) and Original Design Manufacturing (ODM) and Original Brand Manufacturing (OBM) to generate higher added value, experts said.
Experts also said that the Fourth Industrial Revolution would also have significant impacts on the industry, forcing producers to invest more in equipment and staff.
However, experts warned that Việt Nam’s textile and garment sector would face fiercer competition from Bangladesh, Cambodia, Laos, Sri Lanka and Myanmar, adding that it was important to enhance competitiveness to be able to grasp opportunities.
Recent analysis by Bảo Việt Security Company said that countries with competitive advantages in garment and textiles would benefit from the growing US-China trade war, including Việt Nam, Bangladesh and Cambodia.
The US was the biggest importer of Vietnamese textile and garment products in 2017. Statistics from the Việt Nam Textile and Garment Association showed that in 2017, textile and garment exports to the US reached US$12.8 billion, accounting for more than 40 per cent of the sector’s total export revenue.
Textile and garment export to the US are forecast to reach $13.8-14 billion this year.
Textile and garment export revenue totaled $23 billion in the first eight months of this year, representing a rise of 15 per cent over the same period last year. — VNS
