Vinatex invests in technology to expand market share

Vinatex will focus resources on investing in technology during the 2017-2020 period (Illustrative photo – Source: VNA)

Hanoi (VNA) – 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.

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

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.-VNA

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