VITAS signs MoU with CBI for promotion of garment exports

14 May '13

2 min read

The Vietnam textile and apparel association (VITAS) has signed a Memorandum of Understanding (MoU) with Center for the Promotion of Imports from developing countries (CBI), an agency of the Netherlands Ministry of Foreign Affairs which supports the clothing manufacturers and producers of developing countries to expand their exports in the EU, for expansion of their garment exports.

Speaking to fibre2fashion, vice chairwoman of VITAS, Ms. Dung Dang said, “We have signed a MoU with CBI for cooperation in connecting apparel exporters of Vietnam with new market linkages and to improve their export turnover.”

The Vietnam garment manufacturers use two methods of production - Cut, Measure and Thread (CMT) and Free on Board (FOB). The garment production under CMT arrangement involves only the labor intensive assembly processes of cutting, sewing (make) and trimming and the input materials including textiles and accessories are supplied to garment manufacturers by buyers. On the other hand, In FOB arrangement, the clothing suppliers receive payment for the full price of the garment exported and not just for the assembly part or CMT of the production process.

Ms. Dang informs, “The MoU with CBI will help in improving access to high quality fabrics and accessories for small and medium enterprises (SMEs) and it will also help in improving access to services for FOB production for apparel manufacturers.”

According to Mr. Koos Van Eyk, manager of CBI – Vietnam, the EU garment buyers are greatly interested in sourcing from Vietnam as an alternative to China. “Our focus is all having Vietnam add more value, i.e. move from CMT to FOB exporting,” he adds.

Talking about the other developing countries CBI is focusing on, he says, “We are working in Colombia, Bolivia, Peru and Pakistan. We are also planning on developing a program in Bangladesh.”

Fibre2fashion News Desk - India

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