vietnam textiles and clothing industry
TRANSCRIPT
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VIETNAM TEXTILES AND CLOTHING INDUSTRY
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Geographic location
• Geographic and transportation infrastructure• Area: 331,000 km2• Population: 93.6 millions peopleMajor cities’ areas (km2), population (1,000 people)
• Hanoi – HCMC highway 1,811km, 30 hours by train/car, 2.5 hours by airplane
• Vietnam – Germany: 9,323 km• Hanoi – Frankfurt: 4 non-stop flights per week, 12
hours• HCMC – Frankfurt: 3 non-stop flights per week, 12
hours
Hanoi HCMC Berlin Munich
Area 3,358 2,061 891 310
Population 7,420 8,444 3,748 1,456
Density 2,209 4,097 4,206 4,700
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Cultural diversity
We
ste
rn &
Eas
tern
Traditional & Modern
Old & New
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Young population & high economic growth
5.000 4.000 3.000 2.000 1.000 0 1.000 2.000 3.000 4.000 5.000
0-4
5-9
10-14
15-19
20-24
25-29
30-34
35-39
40-44
45-49
50-54
55-59
60-64
65-69
70-74
75-79
80+
Vietnam, 2018
Male Female
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A strong textiles and clothing sector
Facts and figures:- Export 30.4 bil. USD of textiles and
clothing (2018)- Rank 3rd after China and Bangladesh in
clothing export- Key export products (>1 bil. USD): men
and women suits (woven and knitting), cardigans, T-shirts, men and women overcoats
- No. of establishments: 3,518 textiles & 6,961 clothing, locating across the country
- No. of employees: 283,986 in textile & 1,467,767 in clothing
- Hai Phong and HCMC seaports are two main gateways for textiles and clothing trading
Ha Dong Silk Village, 13th
century (Ha Noi)
Ma Chau Silk Village, 16th
century (Hoi An)
Van GiaoBrocade Village, (An Giang)
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A global integrated economy
• 13 FTAs signed (EVFTA is under ratifying process)• 3 more are in negotiating progress
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Main export products and destinations
- 500 1.000 1.500 2.000 2.500 3.000 3.500
Jerseys
Women's suits
Men's suits
Women's suits
T-shirts
Men's overcoats
Women's overcoats
Men's shirts
Women's blouses
Garments made up of felt or…
Top 10 export products, bil. USD
- 2.000 4.000 6.000 8.000 10.000 12.000 14.000
USA
EU
Japan
Korea
China
Taiwan
Hong Kong
Australia
Russia
Chile
Mexico
Top 10 destinations, bil. USD
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VN-EU trading in textiles and clothing
'620411%
'620310%
'620210%
'62018%
'61096%'6210
6%
'61045%
'61105%
'62124%
'63074%
Others31%
Top 10 export products to EU
Germany20%
UK18%
Netherlands15%
France13%
Spain11%
Italy6%
Belgium5%
Export to EU by countries
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VN textiles and clothing value chain
Design, Fashion
Materials
CMT
Branding, Marketing, Distribution
OEM (FOB)
VN Int’l Fashion Weeks annually organized in HCMC and HanoiThe 10th VIFW will be in Oct., 2019
Highly rely on imported materialsNew wave of investment in textiles (CleanDye, Torei, etc.)
65-70% of local firms
ODM: < 5% of local firmsOBM: < 5% of local firms
Large firms, SOE-origin
Local market oriented
Export oriented
2018 production:- 2,8 mil. tons of yarn- 1,9 bil. m2 of fabric
2018 production: 5,2 mil. pieces of clothing
20-25% of local firms
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Advantages
• A strategic location of the country
• A favorable cultural, economical environment
• An attractive quality-price ratio, especially for high added-value, sophisticated items
• A highly skilled and versatile workforce, a collaborative and flexible working style
• Sustainability is integrated in the companies’ development strategy
• Growing offer of qualitative and affordable locally manufactured fabrics
• Skillful import/export logistic solutions
• An alternative solution to the Chinese clothing export
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Challenges
• Availability of market and buyers intelligence
• Availability of locally made, good quality fabrics
• The local firms’ managerial skills and supply chain management
• The roles and efficiency of the government and BSOs
• The capacity of local technical institutions
• The language and communication skills (English)
• The progressive digitalization
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Sourcing cost
Source: 2018 Fashion Industry Benchmark Study, US Fashion Industry Association
Note: The results were based on respondents’ average rating for each country in a scale of 1 (much lower performance than the average) to 5 (much higher performance than the average). In the table, means strength as a sourcing base (rating score between 4.0-5.0), means average performance (rating score between 3.0-3.9), means weakness as a sourcing base (rating score between 1.0-2.9).
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Company sharing- Viet Sun
1. Quality and diversity of the company’s client portfolio- trust building
with buyers
2. Key strategy:
• Industrial and modern set-up
• Investment in product development
• Strict control of the supply chain for sustainability
3. Few words about the factories & the management’s vision
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Façade lifting to be invigorating and improve aesthetics and functionality
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Signature Collection Development by design team
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… and mentored by expatriate designers
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Eco-friendly Certification in the present production facilities
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…. and LEED/Lotus standards to be applied to the new production expansion project to be kick started in Central Vietnam by the end of this year
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Company sharing- Viet Sun
1. Quality and diversity of the company’s client portfolio- trust building
with buyers
2. Key strategy:
• Industrial and modern set-up
• Investment in product development
• Strict control of the supply chain for sustainability
3. Few words about the factories & the management’s vision
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A portmanteau word of Vietnam and the Sun –VIETSUN in a hope that the shine and warmth of the
sun of Vietnam are taken to the world
Apparel company of sustainable growth in Vietnam and in the region
TrustInnovationPassionSustainability
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Company sharing- HA Fashion
1. High-end Women garments with the strategy of Quality & Flexibility• Natural fabric (silk and linen)
• Strict quality control, diversity
• Flexibility
2. Special machines and Quality Control
3. About the company
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Thank you!Trân trọng cảm ơn!
Cục Công nghiệp, Bộ Công ThươngVietnam Industry Agency (VIA)
23 Ngô Quyền, Hoàn Kiếm, Hà Nội
Tel.: 024.3.996.7189 Fax: 024. 3.823.8387
Email: [email protected]
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