Can Vietnam become a major player in the apparel industry?
(VOV) -Having recorded positive annual growth since 2001, the Vietnam garment and textile industry is now banking on a noodle bowl of signed and potential Free Trade Agreements (FTAs) to continue its journey on the path to prosperity.
However, bogged down with problems related to an overreliance on imported raw materials, many are questioning whether the industry will be able to successfully secure its future.
“It no longer makes sense for the country to import 98% of the raw cotton that gets cut and sewn in its roughly 6,000 garment factories,” says marketing expert Vo Van Quang.
Quang says it makes more sense for the industry to begin building textile mills and dyeing and finishing facilities that will allow it to compete at nearly every stage of clothing production, not merely the cutting-and-sewing stage.
However, constructing the facilities needed is not an easy task by any measure say the experts— not the least of which are raising the required capital, finding sufficient space and the environmental issues that attach to their erection.
The dyeing and finishing stages of apparel production require extensive amounts of toxic chemicals and vast amounts of water, which has often been left discharged, untreated, into local waterways by many countries around the globe.
Eternity GrusZ store of the May 10 Garment Company |
But even more significant, they say, is that many of the largest international clothing brands are now focused on minimizing their environmental footprints in a way the world has never seen before.
If the Vietnam textile industry doesn’t get the environmental issues right and use new and emerging technologies to combat the ills of pollution its global image could be irreparably damaged.
They say industry global giants – including Adidas, Ralph Lauren, H&M, and Calvin Klein – and consumers around the globe are sharply attuned to the importance of, and demand ‘environmentally friendly’ produced products.
“Domestic manufacturers in the industry also need to become better financial managers and learn how open markets work,” says Vo Van Quang. “Too many companies have aimed at high levels of sales at too low a profit.”
Quang says in addition, domestic companies need to pay more attention to fashion trends and demand in the international markets to elevate their image as far too many products end up on the discount racks at stores around the globe.
General Director Nguyen Thi Thanh Huyen of the May 10 Garment Company shares the same sentiments as Quang when it comes to design saying her company spends a lot of time researching foreign markets before launching their designs.
“Products have to be trendy, high-quality, and properly priced,” says Quang.
She underscores, her company is expanding into foreign regions and countries the likes of Europe, the US, Japan, Russia, the Republic of Korea, Belarus, and Kazakhstan.