• Overview of Vietnam Textile & Apparel Industry

• Opportunities & Challenges of Vietnam’s Tex-Print

Industry

HoChiMinh City, 7th December 2016

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I. Overview about Vietnam Textile & Apparel Industry

Nearly 6,000 17% average growth in last

companies ten years
2.5 million labors

$27.2 billion 2nd largest manufacturing-

export turover
(2015) based export of Viet Nam

10% total Top 5 of world leading

industrial
production value garment exporters

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 Total: 5,936 companies
Cotton
1.8%
ginning & 8.4%
spinning 0.1%
Textile 15.3% 85.3%

0.1%

Accessories, 14.6%
supporting
industry
74.5%
Apparel
FDI National State-owned
private
Red River Delta

4.0% 0.2%
Northern Midland
& Mountainous
14.7%
26.5%
Area
Northern Central & 0.2%
Central Coastal
85.1%
Area
Central Highland 2.2%
7.1%
59.3%
South - East 0.8%
Area Small: up to 199 employees
Mekong River Medium: 200-4,999 employees
Delta
Large: 5,000+ employees
VITAS, 2015; GSO,
2015
I. Overview about Vietnam Textile & Apparel Industry

Annual Export Turnover (2011-2015)

Unit: Billion USD

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I. Overview about Vietnam Textile & Apparel Industry

Market share of Vietnam textile & apparel

Rank
industry among main market

USA 9.26% 2

EU 3.03% 6

Japan 8.05% 2

Korea 27.11% 2

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I. Overview about Vietnam Textile & Apparel Industry

Exported to the 4 major markets between 2011-2015

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I. Overview about Vietnam Textile & Apparel Industry

Main Export Market 2015 (%)

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I. Overview about Vietnam Textile & Apparel Industry

Vietnam textile and apparel industry still

heavily
dependent upon imported raw materials
and inputs Unit: million USD

Import 2011 2012 2013 2014 2015

Cotton 1,053 875 1,171 1,443 1,623

Fiber/yarn 1,533 1,400 1,520 1,559 1,515

Fabric 6,730 7,045 8,397 9,428 10,197

Accessories 1,893 2,043 2,459 3,031 3,193

Total 11,209 11,363 13,547 15,461 16,528

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I. Overview about Vietnam Textile & Apparel Industry

Imported raw materials & inputs (2011-2015)

Unit: Billion USD

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I. Overview about Vietnam Textile & Apparel Industry

9,000 Cotton-Yarn/Fiber, Fabric & Accessories import by years/

Main import markets
8,000
Unit: million USD
7,000 Japan

6,000 China

Korea
5,000
USA
4,000 EU

3,000 ASEAN

2,000

1,000

-
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
 I. Overview about Vietnam Textile & Apparel Industry

Import - Export Turnover of Vietnamese Textile (2011-2015)

Unit: Billion USD

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 I. Overview about Vietnam Textile & Apparel Industry

Fiber Capability

2000 2010 2013 2014/15 To 2016/17

Spindles 2,000,000 3,700,000 4,600,000 5,950,000 +1,000,000

Quantity
250,000 520,000 700,000 910,000 1,200,000
(ton/year)

Export Rate (%) 20 65 65 65 60

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 I. Overview about Vietnam Textile & Apparel Industry

Regional Fiber Capability

Total of Spindles Ratio Ratio

Region Enterprises
(To 2016/17) (%) (%)
North 3,012,000 36.4 40 38.5

Middle 666,000 8.0 15 14.4

South 4,597,000 55.6 49 47.1

Total 8,275,000 100.0 104 100.0

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 I. Overview about Vietnam Textile & Apparel Industry

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 I. Overview about Vietnam Textile & Apparel Industry

Cotton Status of Vietnam in the global value chains

import

Local Yarn Fiber

FIBER VALUE
cotton (spinning) export
CHAIN

Fiber
import

Weaving/ Dyeing/ Fabric

TEXTILE VALUE
Knitting finishing export
CHAIN

Fabric APPAREL VALUE

import CHAIN

Branding Design Supply of fabric Cut, make, Apparel Apparel

& accessory trim export marketing

CMT(65%)
FOB I (25%)
ODM(9%)
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2016. VITAS 15
OBM (1%) Copyright © 2016. VITAS
I. Overview about Vietnam Textile & Apparel Industry

The structure of Vietnamese garment industry

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 Vietnam with TPP
and RCEP
RCEP TPP
Japan
China
India USA
Canada
Australia New Zealand
Korea

Laos
Indonesia A Singapore Brunei Peru
S
Cambodia E
Philippines Chile
A Malaysia
N Vietnam
Myanmar Mexico
Thailand

RCEP (ASEAN + 6)
RCEP: Regional Comprehensive Economic Partnership
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I. Overview about Vietnam Textile & Apparel Industry

Opportunities & Strengths

• Opportunities:
- Moving from countries with high labor costs to countries such as
Vietnam, Bangladesh, Cambodia, Myanmar ...
- Moving production due to impact of ROO in TPP with “Yarn forward” &
EVFTA with “Fabric forward”
- Countries with developed supporting industries that has not joined the
TPP, EVFTA ….consider moving investment to Vietnam to take advantage
of preferential tariffs will be reduced to 0%)
- Move from “Golden population structure” period
• Strengths:
- Political stability
- The quality of labor
- Policies to encourage exports

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I. Overview about Vietnam Textile & Apparel Industry

Challenges & Weaknesses

• Challenges:
- The ability to satisfy the terms of FTAs
- Join the global value chains of local enterprises
- Production costs will be increased in the coming years

• Weaknesses
- Lack of capital, technology, high level human resources
- To become countries with developed supporting industries
- Capability of enterprise management and labor productivity

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II. Development Policy for Vietnam Textile and Apparel Industry

Target of Textile Industry

Items Unit Target Target Average
2020 Vision to
2016 2015-2020 2040

1. Export Billion
USD 29 45 - 50 11.5% 140 – 150
2. Labor Million person 2.8 3.3 6% 7.0
3. Main product
- Cotton fiber Tons 6,000 10,000 15% 30,000
- Synthetic fiber 1,000 tons 550 700 10% 2,000
- Yarn 1,000 tons 1,200 1,500 8% 3,500
- Fabric Mil. m2 2,000 3,000 10% 8,000
- Gament Mil. pcs 4,500 6,500 11% 18,000
2. Localization
55 65 75
percentage %

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 II. Cơ hội & Thách thức cho ngành IN trong Công nghiệp Dệt May
• Cơ hội:
1. Ngành IN tăng trưởng nhanh do các cơ hội của ngành Dệt May mang lại
Nhiều SP của ngành Dệt May cần qua khâu In ấn

Quần áo
Bao bì

Vải
Nhãn
mác
II. Cơ hội & Thách thức cho ngành IN trong CN Dệt May

2. CNTT phát triển: (“Industry 4”): Công nghệ IN ngày càng đa dạng, phù
hợp với mọi nhu cầu của khách hàng

IN LỤA

IN KỸ THUẬT SỐ
IN CHUYỂN NHIỆT
 II. Cơ hội & Thách thức cho ngành IN trong CN Dệt May

3. Môi trường:
Dịch chuyển nhà
máy Nhuộm ra khỏi
đô thị, khu dân cư…
Đầu tư nhà máy
Nhuộm đắt hơn
đầu tư máy IN

4. Xu hướng Thời
trang
Độc quyền
Đa dạng
Số lượng nhỏ
 II. Cơ hội & Thách thức cho ngành IN trong Công nghiệp Dệt May

• Thách thức:
- Cạnh tranh cao, thiếu lành mạnh…(làm hàng nhái)
- Thiếu nhà thiết kế (vải, in…): vấn đề “bản quyền”
- Xử dụng mực in không rõ nguồn gốc (SK người tiêu dùng ???)
- Nghị định 60/2014/NĐ-CP của Chính phủ ngày 19/6/2014 quy
định về hoạt động in (khó khăn cho việc NK máy in)
 Contact Address

Vietnam Textile and Apparel Association (VITAS)

Add: 7th Floor, Vinatex – Tai Nguyen Bldg.
10 Nguyen Hue St.,Ben Nghe Ward, District 1,
Ho Chi Minh City, Vietnam
Tel: (84.8) 66853449/22411485
Fax: (84.8) 38233465
Email: [email protected]
Website: www.vietnamtextile.org.vn

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