Vietnamese textile firms passive in global value chains

31 Mar '16

2 min read

In what could be a matter of concern for Vietnam's textile industry, Deputy Minister of Industry and Trade, Nguyen Cam Tu said that the country's textile and apparel sector remained passive in global value chains (GVCs).

The Deputy Minister's comment in Hanoi on Tuesday came at workshop to discuss ways to promote the participation of APEC small- and medium-sized enterprises (SMEs) of textile and apparel global value chains.

Tu said the value chain follows the creation of products or services through different production phases, including physical transformation, the input of various manufacturing services, the distribution of products to consumers and their disposal after consumption.

These activities can be conducted within the enterprises or among different enterprises of a particular geographical area.

“In fact, the GVCs are a new and more comprehensive approach to international divisions of labour. It means that any enterprise participating in the process of manufacturing can be considered to participate in the GVCs,” he said.

However, access to international divisions of labour based on GVCs would help enterprises have a better understanding of their position in the global market, and therefore they can actively select appropriate phases to maximise their benefits, he said.

Ph?m Quynh Mai, Deputy Director of the Multilateral Trade Policy Department under the Ministry of Industry and Trade, said the textile and apparel sector faces difficulties despite its fast growth. The sector is still dependent on imported raw materials, particularly from China.

“This will have a big impact on the country's textile and apparel sector if the market has disadvantageous changes,” she warned.

Nguyen Huong Tra, an SME development expert who addressed the workshop, said that in order to access markets, enterprises need strategies and knowledge. SMEs should sign design and outsource manufacturing contracts with large enterprises to learn from their experiences, he said. (SH)

Fibre2Fashion News Desk – India

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