Home / Knowledge / News / Textiles / Textile industry in dire need of raw material trading centers
Textile industry in dire need of raw material trading centers
21
Jul '08
Ever since 2004, Vietnam National Textile and Apparel Group (VINATEX) is planning to build two material trading centers in Hanoi and Ho Chi Minh City (HCM). However, due to certain clearance problems in land acquisition, especially in HCM, the scheme is being delayed for an indefinite period.

Presently the textile industry is vexed over soaring prices of the raw material and its inability to cope with the situation.

Southern Vietnam textile industry in particular, is in dire need of this material center which can help its companies become more independent and active.

A total of five hectares in Thu Duc District was allocated to VINATEX for setting up this raw textile material trading center. The Association, however, reported that land transfer procedures had been stalled despite approval of the Government authorities because the area was identified by the Department of Transportation and Public Works as a zone for waste management project.

Prices of the raw material have mounted by 20 percent on an average in the first half of this year requiring the textile and garment industry to desperately increase its supply of raw materials. As many as 2,500 companies import raw materials for half of their contracts and this is because there is not even one raw material processing center in the south from where about 1,500 textile companies operate.

Having a raw material trading center is quintessential because it provides a venue where local textile and garment manufacturers can buy domestic and international supplies of raw material at a reasonable rate. This arrangement would not only facilitate growth of the Vietnamese textile industry but will also help garment firms to move away from less profitable outsourcing contracts.

Experts believe that the textile and apparel enterprises must also lessen the dependence on imported raw material to ease out the pressure of rising costs. Industrial sources confirmed Fibre2fashion that recently, Saigon 2 Garment Joint Stock Company transformed one of its factories in Tan Binh District to a raw materials processing and trading center. After its launch, a large number of Chinese suppliers have offered their products for local manufacturing firms. In fact, now, raw material providers from Thailand and Indonesia have also been invited to trade their products in Vietnam.

However, this center is not big enough to serve the entire southern region which is why some other centers were being planned.

US purchases about 50 percent of Vietnam's exported textile and garment products while EU and Japan buys 17 and 8 percent respectively, of the remaining. The country aims to export goods worth US $9.5 billion to US but this would be next to impossible if domestic companies still imported 70 percent of the required raw material.

Fibre2fashion News Desk - Vietnam


Must ReadView All

Europe fights against microplastic release from textiles

Textiles | On 18th Jan 2018

Europe fights against microplastic release from textiles

The European Commission, the institution of the European Union, has...

Egypt starts building biggest textile city in Al-Sadat

Textiles | On 18th Jan 2018

Egypt starts building biggest textile city in Al-Sadat

Egypt has started construction of the biggest city for textiles and...

Vietnam targets $20 bn from export of footwear, bags

Apparel/Garments | On 18th Jan 2018

Vietnam targets $20 bn from export of footwear, bags

Vietnam targets to earn around $20 billion from the export of...

Interviews View All

Top executives
Textile industry, India

The event should be organised every year

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Headhonchos
Textiles & allied industry

Textiles industry is always in the forefront in accepting latest technology

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

January 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search