Deeply dependent on raw materials from China
Many textile materials are imported from China. Illustration: L. Hoang
According to updated information on import and export markets of the General Department of Customs, in June, the import turnover of raw materials and auxiliary materials serving the textile, leather and shoe industries (including: cotton, textile fibers, fabrics, etc.) materials and accessories for textiles, garments, leather and shoes) reached 2.4 billion USD, down 16.1% (equivalent to 461 million USD) compared to the previous month.
Generally, in the first 6 months of this year, imports of raw materials and accessories for the textile, garment and footwear industry reached 14.71 billion USD, up 8.7% (equivalent to 1.17 billion USD) compared to the same period last year. period of the previous year.
According to the customs office, in the first half of this year, Vietnam's import turnover of this group of items from China was 7.76 billion USD. Thus, China continues to be the largest exporter of textile, garment and footwear materials to Vietnam, accounting for 53%.
Notably, while the import value of this group of raw materials only increased by 8.7%, imports from China increased by 11.7% over the same period last year. This shows that textile and footwear enterprises in Vietnam not only continue to rely heavily but also continue to increase their import of raw materials and accessories from this neighboring country.
Besides China, according to the customs authority, other countries and territories that supply this material a lot to the Vietnamese market include Taiwan with $1.4 billion (up 6%); Korea with $1.3 billion (up 1.9 percent); US with $961 million (up 0.4%)…
Thus, although the Ministry of Industry and Trade and other ministries over the years have always called and encouraged textile and footwear manufacturers to increase the localization rate, the situation shows that domestic production in this industry still heavily dependent on overseas suppliers.
Quickly remove the "knot"
Economists fear that instability and high inflation will continue to cast a dark shadow on the global economic picture in the coming time.
Looking back at the two years of the Covid-19 pandemic also shows that the inadequacies of the supply chain have been clearly revealed. Many Vietnamese textile, garment and footwear enterprises do not have enough raw materials for production. Although the current situation has improved, according to experts, this is still a "bottleneck" not only for this year but also in the long term for both industries.
Therefore, according to the Ministry of Industry and Trade, the completion of policies to create a greater incentive to attract investment in raw materials and improve the governance capacity of the textile and footwear industries are urgent issues. .
The textile and footwear industry is still heavily dependent on imported raw materials, most of which are from China. Illustration: TL
In recent years, textile and footwear enterprises have made efforts to find ways to cope with arising difficulties, especially the lack of production materials. However, according to experts, this solution is only temporary. To solve the root of the problem, it is necessary to synchronize from policy to orientation and implementation.
A representative of the Vietnam Textile and Apparel Association (VITAS) said that the Vietnamese textile and garment industry still faces many immediate risks and challenges when the risk of a re-emergence caused by new strains of Covid is still present. Many of Vietnam's trading partners such as China, Japan, and Taiwan are still applying strict anti-epidemic measures and significantly affecting the supply chain of raw materials, accessories and consumption of textile products of Vietnam. Vietnam.
In addition, the Russia-Ukraine conflict caused the price of raw materials and fuels to increase continuously since the beginning of the year, specifically cotton prices increased by 19.1%, crude oil prices increased by 40%, domestic gasoline prices increased by 67%. , transportation costs are 3 times higher than the average in the past 5 years… making the cost of enterprises increase by about 20-25%.
In fact, according to industry experts, building a complete supply chain is not simple and cannot be done in a short time. However, in order to compete and develop more sustainably, the textile and footwear industry needs to actively improve the production stages at the beginning of the chain. For example, textile and garment gradually develop material links (yarns, fabrics) to meet the demand for sewing, ensuring a closed supply chain.
The Ministry of Industry and Trade said it is coordinating with ministries and sectors to remove bottlenecks and develop long-term solutions. In which, encouraging the development of supporting industries, gradually reducing dependence on imported materials and accessories, improving competitiveness in the export market, and developing the domestic fashion industry.
The Ministry of Industry and Trade also accelerated the development and implementation of the Strategy for the development of the textile and footwear industry to 2030, with a vision to 2035. At the same time, this agency focused on supporting human resource training. and 4.0 technology application in production design; greening the textile, leather and footwear industries as well as developing domestic textile and dyeing, ensuring the fabric demand for the industry.
Le Hoang
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