Home / Knowledge / News / Apparel/Garments / Vietnam improves localisation ratio in textiles, garments

Vietnam improves localisation ratio in textiles, garments

23
Feb '19
Pic: Artem Bali from Pexels
Pic: Artem Bali from Pexels
Though poor supporting industries have been traditionally considered by experts as the major reason hindering Vietnam’s path towards joining global supply chains, that no longer holds true for the textile and garment industry, thanks to policy measures and enterprises’ preparations for free trade agreements (FTAs), which set high requirements on product origin.

Vietnam had to import four-fifths of input materials and accessories for domestic textile and garment production in the past. That figure has fallen to 30-40 per cent now, according to a report in a Vietnamese newspaper.

According to Pham Tat Thang, a senior researcher at the ministry of industry and trade, the country’s supporting industries for the textile and garment sector had witnessed slow growth until two years ago, but have now invested in strengthening themselves based on commitments made in FTAs.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), for example, sets the ‘yarn forward’ principle, and therefore, Vietnam has made bigger investments in yarn production projects to be eligible for preferential tariffs stipulated in the agreement.

Ho Chi Minh City-based Hung Xuong Chemicals has obtained Bluesign, an European certificate on environment-friendly products and workplace safety, which is considered a solution for sustainable textile production.

Vietnam has also developed fabric manufacturing projects to satisfy the ‘fabric forward’ principle stipulated in the Vietnam-EU FTA.

Problems still remain in setting up weaving, dyeing and trimming units close to each other because of reluctance of local authorities to offer land because of pollution and in production optimization—the scale of production now is not big enough to cut production costs. (DS)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 15th Dec 2019

Global economy to slow, tensions to ease in 2020: report

Global economic growth is likely to fall to just over 3 per cent in...

IOM Finland Chief of Mission Simo Kohonen & H&M Group Head of Sustainability Anna Gedda sign MoU. Pic: IOM

Apparel/Garments | On 15th Dec 2019

IOM, H&M to work for protection of migrant workers

The International Organisation for Migration (IOM) and H&M Group have ...

Pic: GlobeNewswire

Textiles | On 15th Dec 2019

Founder's Hemp & Nufabrx make CBD oil-compression sleeves

Founder's Hemp and Nufabrx have joined hands to reinvigorate the...

Interviews View All

Top executives, Retailers

Top executives
Retailers

Weak rupee breeds inflation

Kaizad Hansotia, GetNatty

Kaizad Hansotia
GetNatty

Competition is the best thing that can happen to a startup

Mohammad Mamun Ar Rashid, UL VS Bangladesh Ltd

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Milva Morani,

Milva Morani

Brighi Technologies began in 1970 with trading and repairing sewing...

Luciano Sardini,

Luciano Sardini

A consolidated reality in Italy and internationally, IMA Spa is well-known ...

Mirella Sardini,

Mirella Sardini

A leading manufacturer of automated machinery and equipment for the...

Giorgio Mantovani, Corman S.p.A

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Pranesh Sridharan & Berndt Koll, Lenzing

Pranesh Sridharan & Berndt Koll
Lenzing

The Lenzing Group produces Lenzing Lyocell and Modal cellulosic fibres of...

Wolfgang Plasser, Lenzing AG

Wolfgang Plasser
Lenzing AG

The Lenzing Group is an international company headquartered in Austria...

Sonam & Paras Modi, SVA

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Aditi Somani, Aditi Somani

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Divvya and Nidhhi Gambhir, Walnut

Divvya and Nidhhi Gambhir
Walnut

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

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

Leave your Comments


December 2019

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


Advanced Search