The growth quality of Vietnam's Textile and Garment Industry has changed significantly

In 2018, the export of textile and apparel industry surpassed the figure of 36 billion USD, increasing by 16.1% compared to last year. According to Vinatex chief, not only the quantity but also the quality of growth also changed clearly.

At the press meeting on December 26, Mr. Le Tien Truong, General Director of Vietnam Textile and Garment Group (Vinatex), said that the biggest difference in Textile exports this year is the absolute value increases USD 5 billion more than last year.

Because of the "golden years" like 2007-2008, the growth of this industry reached 34%, but the actual value of absolute value is only over 2 billion USD, while in recent years, the increase of 10% is average also increased from 2.5-3 billion USD in turnover. "Therefore, the absolute figure this year is very special, that is an increase of US$ 5 billion and equal to 100% of the export turnover of 2007, this is the most outstanding feature of the 2018 Textile and Garment export," Mr. Le Tien Truong said. Notably, Vietnam's Textile exports in 2018 surpassed Bangladesh, rising to third place, only behind China and India, even following India very closely. Having this outstanding result must be put in a series of contexts such as the advantages of tariff reduction for Textile and Garment, even the general demand in 2018 on this item has not changed much.

Meanwhile, in terms of Vietnam's comparative advantage compared to other countries, for example, the price of Vietnamese goods is about 6% more expensive than that of China and about 12% more expensive than from India. Not to mention the US-China trade war has had certain effects on the consumption of this item plus the adjustment of interest rates in importing countries has significantly affected Textile and Garment exports.

Therefore, according to Vinatex's chief, the sudden change in Textile and Garment export in 2018 is the movement of the world 's huge production area, China to Vietnam. Besides, many large foreign enterprises have also seen the opportunity to invest in Vietnamese textiles instead of other countries such as Bangladesh or India ...

Looking further, according to Mr. Truong, by this time large and medium enterprises of the Textile and Garment industry almost have high standards of product quality, working environment ... Moreover, workers have also found see the attraction in the Textile and Garment industry, although labor competition is still fierce. "In terms of overall aspects of many new manufacturing industries, the image of labor of Textile and Garment industry is recently different, making the overall competitiveness of production and labor change," said Le Tien Truong.

Focus on production automation

On the side of Vinatex, Mr. Truong said that the quality of growth of the Group has changed dramatically. Instead of investing in new projects to expand the scale, the Group has focused on intensive investment, focusing on automation, and improving labor productivity.

For example, May 10 Joint Stock Corporation (a subsidiary of Vinatex), instead of investing in a new factory, has invested in a stage from manual cutting to automatic cutting, increasing the accuracy. Even extremely difficult stages such as bagging, armpit cutting are also turned away by robots, which saves many production processes. “Getting results today is due to a high degree of automation, creating a more convenient, less stressful work environment,” Mr. Truong added.

Vinatex's chief also emphasized that Vinatex's direction is still to focus more on export quality.

Specifically, the group strives to be the top choice among suppliers to minimize risks before market fluctuations. To do this, Vinatex will focus on producing the most difficult technical items.

Through the above assessments, Mr. Truong affirmed that the 2018 results are a series of strategies of the past time, mainly of high-level international production investment, green technology, customers rows of priorities placed in the supply chain and attention to workers. “Consistent with the strategic goal is very important, ie the quality of the growth, the time it takes to see it takes 4-5 years and it is difficult to accept easy growth. In the past we were always talking about the goal of increasing employment, and now the goal must be to create sustainable jobs, "Vinatex leader closed.