Mr. Vu Duc Giang, Chairman of the Vietnam Textile and Apparel Association shared about the programs and orientations being implemented by the Vietnamese textile and garment industry to ensure the development of the industry in the face of new requirements and requirements of the textile and garment industry market.
Please share about the orientation of greening and sustainable development of Vietnam’s textile and garment industry in the coming time. What is the current situation of enterprises in the industry’s transition to green production?
Greening and sustainable development is the inevitable trend of the market. If we do not catch up with this trend, the Free Trade Agreements that Vietnam has signed will not be effective for Vietnam’s textile and garment industry in general as well as for individual businesses, even businesses may lose money. gradually orders into the hands of rival countries.
The orientation of greening and sustainable development has been set out in the draft Strategy for the development of Vietnam’s textile and garment industry to 2030, with a vision to 2035. On that basis, each enterprise will have its own solutions to catch up with the trend. as well as the requirements of major markets such as Europe, the US and Japan. To achieve this goal, there is no other way that the business community, led by the role of the Vietnam Textile and Apparel Association, has to develop solutions and make demands from brands, manufacturers. imports, so that businesses can be proactive and adapt to the investment in facilities and infrastructure, as well as invest in people to meet that requirement. In the coming time, each business must come up with a roadmap for each year to catch up with the trend.
In Vietnam, there are many businesses that have achieved the standards of greening and sustainable development. For example, Tan De Garment Joint Stock Company in Thai Binh province. When you come to this enterprise, you will only see a forest from the outside, but when you enter that forest, you will see the factory. This enterprise has 19,000 employees divided into 7 areas, each area is nearly 10 hectares wide. This enterprise has invested in infrastructure that meets all standards on greening, environmental standards, using clean water sources, and renewable water sources to serve sustainable development.
However, it should be noted that the current problem is not only sustainable development but also development on the basis of transparency, development in parallel with ensuring the transparency of each enterprise. Today’s brands are not only looking at green issues, not only looking at saving water or using solar energy, renewable energy, but most importantly, all of that is reflected in management. The numerical value and IT of each unit must show brands how the business operates and is controlled to achieve its goals and standards.
In addition to the strategy of greening and sustainable development, the textile and garment industry also sets a goal to gradually shift from CMT to FOB, ODM, and OBM. How will this goal be accomplished, sir?
Vietnam Textile and Apparel Association encourages enterprises to develop from CMT to FOB, ODM, OBM based on 3 main pillars.
First, promote investment in the short supply of the industry. We must be proactive in domestic raw materials, there are materials that not all countries can fully produce. Each country has its own strengths and so does Vietnam. The orientation from the Government in the development strategy of Vietnam’s textile and garment industry to 2030, with a vision to 2035 will be the legal basis for this. That is to invest in the infrastructure of industrial parks so that the Vietnam Textile and Apparel Association and the business community call for investment in the supply shortages, especially in fabrics such as woven fabrics, high-grade fabrics and high yarns. grant.
Second, encourage businesses to train designers’ resources. Because doing ODM and OBM goods, they have to go from the design of the enterprise. Even the goal and aspiration of Vietnam’s textile and garment industry is that by 2035, there will be about 15% of exports with Vietnamese brands. This is the aspiration that the Government has assigned to Vietnam’s textile and garment industry to implement in the solutions 2035 -2045.
Third, the Vietnam Textile and Apparel Association is proposing a series of mechanisms and policies for businesses, especially the issue of promoting the ability of financial resources and creating a mechanism and policies for the State on interest rates for bank loans. goods so that businesses can actively finance for FOB sales, ODM sales.
Vietnam’s textile and garment industry sets a target of export turnover in 2023 at 47-48 billion USD. On what basis is this number given when the market context is difficult, sir?
The number 44 billion is a realistic target that the textile industry has achieved this year and by 2023 we set a target of 47-48 billion USD as a basis. Firstly, according to the tax reduction roadmap of the EVFTA Agreement, in 2023 the tax rate of many items will be 0%. Second, during his recent visit to Europe, the Prime Minister is also promoting investment agreements with Europe. This is an agreement that will promote the development of industries, including the textile industry.
Third, enterprises themselves have been under a great deal of pressure in 2022 and have learned lessons. Instead of specialized production as before, enterprises have produced and diversified products. Over the past time, it is thanks to diversification that businesses have maintained jobs for employees and businesses still maintain the growth rate, even though the growth is not as expected.
Currently, enterprises have begun to transform their production structure from knitwear to woven goods. Along with that, enterprises can also withstand the pressure of producing small orders with fast delivery time. Businesses have also diversified their markets. Previously, some markets did not pay much attention, now businesses have paid more attention such as the markets of countries in the Russia – Soviet Union (former), African countries, and the Middle East market. Especially, China is now one of the main markets of Vietnam’s textile and garment industry.
Thank you Sir!
