Scale of Vietnam's textile and garment is currently ranked 2nd in the world. (Photo: PV/Vietnam+)
In the first 6 months of the year, although the world economy continues to face many difficulties, Vietnam's textile and garment industry has achieved outstanding results when exporting is estimated at 22.3 billion USD, reaching a growth rate of 17 7% over the same period in 2021.
Talking to reporters, Mr. Le Tien Truong, Chairman of the Board of Directors of Vietnam Textile and Garment Group (Vinatex), said that for Vietnam's textile and garment at this time, it will not be too focused on increasing the scale. but the important thing is to improve the position in the supply chain of high-value products, doing many stages in the supply chain...
The goal of 42-43 billion USD is feasible
- Given the very positive results in the first 6 months of the year, could you please tell us the next forecast in the last 6 months of the Vietnam Textile and Garment industry?
Mr. Le Tien Truong: The market situation in the last 6 months of the year will have many complicated and volatile developments that require daily and hourly monitoring to adjust. Because it is not an equal market, according to market rules, it can be said that textiles and garments will complete how many billion USD of exports.
At this time, export turnover is a directional indicator. The most important thing is that the export business remains efficient, or at least does not lose money to be able to endure in the long run.
Of course, despite unfavorable conditions, the export target of 42-43 billion USD, even to 44 billion USD this year for textiles and garments is still feasible. We can still hope, but it is necessary to strictly control the situation to ensure efficiency and achieve predictable results.
On its side, Vinatex will apply all measures to keep jobs, orders and customers, not lose money to maintain production and business results in the first 6 months of the year.
- Faced with fluctuations in raw material prices, how do textile enterprises plan to adapt to this situation and how is the order volume of Vinatex enterprises?
Mr. Le Tien Truong: For the garment industry, orders are relatively stable until the end of the fourth quarter. The most difficult part of the industry is not the order, but at what price will companies buy raw materials? With the current conditions, the price of raw materials in the market changes daily.
The second is to control the supply chain to see if the delivery deadline can ensure timely orders, because the disruption of the logistics chain is still a common challenge, not only for the textile industry.
For the raw material production industry, the largest factor is still the input factor. As with the yarn and cotton industries, natural and chemical fibers move up or down with world oil prices.
The hardest part of raw material production is the requirement to buy early because the delivery time is 3 months. When we cannot control the up-and-down cycle, the volatility of the market, the only solution is to buy enough raw materials, not to buy large batches and not to buy too long.
Mr. Le Tien Truong, Chairman of Vinatex Board of Directors. (Photo: PV/Vietnam+)
- So does Vinatex have a policy to expand the market?
Mr. Le Tien Truong: Actually, we all know that Vietnam's textile and garment industry is the second largest in the world, there are almost no places left, and the market is quite large that we have not approached.
Vietnam has exported to the US, Europe, Japan and many other countries. In the US, Japan and Korea markets, the market share of Vietnam's textile and garment industry has ranked second, even exporting to China with a scale of 5-6 billion USD/year.
Thus, the main countries of the world market have accounted for 90% of the world's consumption of textiles, we are all present. The new market concept for Vietnam's textile and apparel industry is not a new channel, a new country, but the new market concept here is a deeper integration into the global supply chain where we were just people before. processed when favorable.
Currently, Vietnam has become a priority member in the supply chain so that not only in order to increase in volume, but also, it is important that Vietnam has always been prioritized by customers to place orders first. As for the scale of 40-45 billion USD, it will be very difficult to find a new market to increase 500 million USD.
I see that, all major markets we are present, but how to be present, in what position is it to be concerned? For Vietnam's textile and garment at this time, it will not be too focused on increasing the scale, but the important thing is to improve the position in the supply chain of high-value products that can do many stages in the industry. supply chain...
Building a better position in the supply chain
- How to improve Vietnam's position before price is not a competitive issue, sir?
Mr. Le Tien Truong: Currently, Vietnam's price is not an advantage to compete with, but the world textile and garment market is still competitive by price, which means we have lost our advantage in cheap prices, so we need to have other advantages to offset in.
One of the compensating factors that supply chains are interested in is the ability to provide a package, instead of meeting Vietnamese businesses to do just one stitch.
This requires Vietnam's textile and garment industry to produce both yarn, fabric and sewing. In addition, the industry needs to be a pioneer in making green products, recycled products and orienting towards circular products.
In Europe and other countries, textiles and garments are considered as one of the largest sources of solid waste in the world. After use, they are non-recyclable, non-recyclable and become global garbage. .
This is a challenge but also an opportunity for latecomers like Vietnam compared to leading countries in textiles such as China and Korea. Going later, going slow will help us choose the way to go, can take shortcuts, and orient circular products, thereby building a better position in the supply chain.
Every day, the requirement of a circular economy is more and more important, towards 2050 is a balanced waste, and Vietnam has committed to reduce methane emissions by 30% by 2030, textile enterprises need to stick to that national roadmap to commit to promoting.
- Export of textiles in the past 6 months in recent years:
- With the current trend, what will the greening process of Vietnam's textile and garment industry look like, sir?
Mr. Le Tien Truong: The greening of Vietnamese textiles has three basic factors, including: The first is green energy. This is a process of businesses trying to balance their own electricity consumption. For textile enterprises, the amount of electricity is very large.
To solve this problem, businesses in Vinatex have installed solar power on the roofs of factories. For the large electricity-consuming fiber industry, the installation of solar power can meet 20% of the total electricity consumption. As for the garment industry, solar power can meet more, in some places up to 35% of total consumption.
The second is to use clean ingredients. From chemicals, dyes, to raw materials such as cotton, fiber… Vinatex uses raw materials that are sourced and certified to be clean. This helps textile products to be traced as green products.
The third is a green working environment, ensuring for employees a working environment that meets the standards of industrial hygiene and safety conditions, meeting the requirements of the system of buyers in the world according to each individual. cycle.
For example, in the US, there are more than 110,000 businesses currently applying this standard with requirements on plant design, energy use and raw material sources...
The application of greening according to international standards not only helps businesses to be evaluated and recognized by the parties, but also helps products to be selected by customers.
- Thank you Sir./.
Xuan Quang (Vietnam+)
https://www.vietnamplus.vn/chu-tich-vinatex-phai-cai-thien-vi-the-det-may-trong-chuoi-cung-ung/807637.vnp
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