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Tag: Vinatex

  • Vinatex invests in technology to expand market share

    Vinatex invests in technology to expand market share

    The Vietnam National Textile and Garment Group (Vinatex) must innovate its technologies as soon as possible in order to increase its market share, said Le Tien Truong, the group’s General Director, at its share-holders’ meeting held in Hanoi on June 29.

    Vinatex will focus resources on investing in technology during the 2017-2020 period

    Therefore, during the 2017-2020 period, Vinatex will focus resources on investing in technology, Truong affirmed.

    According to him, the world economy is likely to grow by 2-3 percent this year, while the world demand for garment and textiles may recover slightly, at about 0.5 percent.

    In addition, the US may adjust up import taxes on commodities from China, including garment and textiles, which can be a positive sign for Vietnam’s garment and textile export by expanding its market share in the US.

    However, the Vietnamese garment sector is facing fierce competition in attracting orders as domestic businesses are unable to provide package services and face difficulties in meeting importers’ shipping requirements.

    The country’s major competitors such as China, India, Bangladesh, and Indonesia continue attracting a lot of orders thanks to their preferential policies on tax and exchange rate, while the European Union-Vietnam free trade agreement (EVFTA) and Trans-Pacific Partnership (TPP), which are hoped to help with Vietnam’s exports, have yet to become effective in 2017.

    Other problems for the sector include rising input costs and falling selling prices, plus the lack of high-quality human resources who can operate modern machines, especially in weaving and dyeing phases.

    Therefore, the Vinatex will exert efforts to increase management capacity and administration in a modern and professional manner, while continuing to expand markets in East Europe, and optimise advantages offered by valid FTAs.

    In 2016, Vietnam’s apparel industry saw lower than expected results, with 28.3 billion USD in exports, up 5.7 percent year on year. Vinatex earned over 2.5 billion USD, an increase of 5 percent over 2015, with a pre-tax profit of over 41 trillion VND on a 5 percent year on year increase.

    In 2017, Vietnam’s textile-garment sector aims for a growth rate of 7-8 percent, and 30 billion USD in export earnings.

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  • Vinatex and Itochu sign strategic co-operation agreement

    Vinatex and Itochu sign strategic co-operation agreement

    Viet Nam Textile and Garment Group (Vinatex) on Monday signed a strategic co-operation agreement with Japanese firm Itochu, witnessed by PM Nguyen Xuan Phuc and his Japanese counterpart Shinzo Abe in Ha Noi.

    Itochu is expected to help Vinatex make a change in textiles and garment production and business method from Cut—Make—Trim to Free on Board, developing a sustainable retail distribution network to enjoy long-term benefits.

    Under the agreement, trading firm Itochu will assume the role of a consulting partner for Vinatex and its member companies in developing the textiles and garment supply chain from fibre to thread, fabric and sewing, retail distribution, co-operation and introducing domestic and foreign partners.

    Shuichi Koseki, senior managing executive officer, manager of CP·CITIC Strategy Office, president of Textile Company and representative director, said Viet Nam’s textiles and garment were an important part of Itochu, therefore it wanted to develop this area with Viet Nam, so that Vinatex could become its number one partner.

    In the near future, he said Itochu would boost co-operation between the two sides to develop textiles and garment products and supply them globally.

    Speaking at the signing ceremony, Le Tien Truong, general director of Vinatex, said the two sides would discuss in detail the co-operation plan and implement actions immediately to make a change in Vinatex’s textiles and garment production and business method from Cut—Make—Trim to Free on Board, developing a sustainable retail distribution network to enjoy long-term benefits.

    Itochu signed a framework agreement to support several projects in dyeing and materials production in Viet Nam, training in the country’s dyeing sector and utilising the capacity of Vinatex’s dyeing factories in the central region in 2015.

    At that time, Itochu owned five per cent stake in Vinatex through a subsidiary company.

    Itochu, one of the leading economic groups in Japan operating in various areas, including textiles and garment, has co-operated with some 100 textiles and garment companies of Viet Nam.

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