Vietnam's textile industry becomes a hot spot, Chinese companies rush for gold in Vietnam's textile industry

by:JIYALI     2021-08-09
The low self-sufficiency rate of raw materials for processing and exporting textiles and garments in Vietnam, the weak overall competitiveness of the textile industry, and the strengthening of anti-dumping investigations on Vietnamese textiles by the United States have also affected the export of Vietnamese textiles to a certain extent. However, due to the high quality of the labor force in the textile industry in Vietnam and the relatively low prices, Vietnam's trade environment has continued to improve after its accession to the WTO, and the textile and garment industry is still a popular industry to attract foreign investment.   Vietnam’s total exports of apparel and textile products reached US$5.8 billion in 2006, an increase of 52%. From January to February 2007, clothing and textile exports were US$1.016 billion, a year-on-year increase of 31.1%.   Textiles are one of Vietnam’s important export commodities. Vietnam's annual production capacity is 100,000 tons of 100% cotton yarn and blended yarn, 1,500 tons of sewing and embroidery threads, 3,000 tons of acrylic, 250 million square meters of fabrics, 50 million pieces of knitted products, 80 million pieces of clothing, 1.5 Billion towels. At present, Vietnam's clothing industry is developing rapidly, while the textile industry is developing slowly. More than 60 fabrics and accessories need to be imported in large quantities to meet domestic market demand.    Attracting foreign direct investment of US$5.4 billion    Recently, the Vietnam Textile Association stated that up to now, the Vietnamese textile industry has attracted a total of US$5.4 billion in foreign direct investment (FDI). Taiwan of China ranks first among countries and regions in investment in Vietnam's textile industry, with an agreement amount of approximately US$2.3 billion, followed by South Korea (US$1.6 billion) and Hong Kong, China (US$400 million). In 2007, there were 76 newly approved FDI investment projects in the textile industry in Vietnam, with an agreed amount of US$8.8 billion.   In 2007, the reason why Vietnam's textile industry did not attract much foreign direct investment was that foreign companies were worried that the United States would further maintain a regulatory mechanism on textiles from Vietnam, which might lead to anti-dumping investigations against Vietnamese textile companies.    The Vietnamese government has increased investment. In recent years, in order to improve production efficiency and accelerate the modernization of the textile industry, the Vietnamese government has increased its investment to promote the development of the textile industry. Among them, large investment projects mainly include: DaNang City (DaNang) Heqing Textile Printing and Dyeing Project, Hung Yen Province (HungYen) PhoNoiB Project, Dong Nai Province (DongNai) Nen Chak Textile Industry Project and Binh Duong Province (BinhDuong) Ping An Textile Industry Project, etc. . The Ministry of Trade and Industry of Vietnam proposed in the Vietnam Textile Industry Development Strategy (Draft) from 2015 to 2020 that from 2006 to 2010, the average annual growth rate of Vietnam's textile production was 16%-18%, and the export growth rate was 20%; the output between 2011 and 2020 The growth rate is 12% to 14%, and the export growth rate is 15%. During the period, the entire textile industry needs to invest nearly 7 billion U.S. dollars. The strategy proposes that Vietnam will focus on the development and improvement of textile export competitiveness, make full use of market opportunities, and increase the level of localization.   Vietnam Textile Group is responsible for formulating cotton planting development plans, establishing cotton sprinkler irrigation planting areas, and improving the yield and quality of Vietnamese cotton. The textile industry has previously announced 3 investment projects for chemical fiber. In addition, the Vietnam Textile Group plans to plant cotton in Ninh Thuan, Binh Thuan, Dak Lak, Quang Trang and Dong Nai provinces in order to increase the cotton field area to 45,000 to 50,000 hectares by 2010.  Chinese companies rush for gold in Vietnam’s textile industry   After Vietnam’s accession to the World Trade Organization, the first advantage is that exports to the US market will no longer have quota restrictions, and the textile and apparel industries will have equal status in many markets. In addition, the infrastructure of the textile and clothing industry will be improved because it will attract more foreign investment after joining the World Trade Organization.  According to the statistics of the Ministry of Planning and Investment of Vietnam, from January to September 2006, Vietnam newly approved 36 Chinese direct investment projects in Vietnam, with an agreed investment amount of 58.48 million U.S. dollars, ranking 12th among countries and regions in the world in direct investment in Vietnam. As of September 30, 2006, China had accumulated 390 effective direct investment projects in Vietnam, with an agreed investment amount of US$816 million and an actual amount of US$207 million in place, ranking 15th among countries and regions in the world for investment in Vietnam. China currently has more than 200 garment processing companies in Vietnam.   Chinese textile companies investing in Vietnam’s textile production and export projects have brought many benefits to Vietnam. At the same time, the entry of Chinese textile companies will also bring certain impacts and pressures for market competition to Vietnam's domestic enterprises, especially state-owned enterprises and some powerful and smaller private enterprises.
Custom message
Chat Online 编辑模式下无法使用
Chat Online inputting...
Thank you for your enquiry. We will get back to you ASAP