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How Responsible Is Advertising In Apparel Industry

03 June 2022, Mumbai:

A few decades ago, the textile and retail sectors did not market their products to the general public, which seems surprising for an industry that is fully consumer-focused now.

Exhibitors and shops designed their promotions and marketing without the assistance of specialists sometime later. If not for the fierce rivalry in the garment business, the unplanned advertising and marketing methods would have persisted.

 

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There are several possibilities for advertising garment manufacturers. The garment designers or producers, on the other hand, research the target market and devise a marketing strategy based on their findings.

When older clients are the target market, shops frequently use the internet or print media to spread the word about the clothing line. Youthful customers favor Internet advertising and electronic media.

The goal of advertising is to develop a specialized market for the clothing brand in addition to increasing revenue. If a company hasn't yet opened a physical location, it's critical to set up virtual stores in one or more online marketplaces.

 

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Retail clothing marketers are increasingly employing strategies such as geo-targeting, which involves directing mobile advertisements to brick and mortar establishments. It's also simple to track the success of mobile advertisements and web ads.

Marketers quantify ad performance by the number of times customers click on links. Marketers and advertisers investigate what individuals do after clicking the link or visiting the sites to understand buying behavior better.

 

RELEVANT NEWS How Seriously Are International Brands Looking at Indian Apparel Sector

Effective advertising is seen as considerably more important than operating a physical store in today's world.

Before the debut, merchants, designers, and manufacturers raise awareness of the product and turn it into a brand so that potential consumers are aware of its presence. In the fashion business, emphasizing a product's originality and superiority has become unavoidable, as new rivals enter the market every day.

Mobile advertising has altered the attention of garment retailers and manufacturers away from traditional marketing channels such as billboards, print ads, and television commercials. Smartphones are increasingly being used to make retail transactions on the fly, and marketers are taking note.

 

The simple answer is that young or middle-aged customers are always keeping up with the fashion world via smartphones, and online purchasing is also gaining traction. So, whether it's seeking color options or larger sizes, mobile phones can do it all.

The concept of the clothing business has shifted in recent years since a single item now reflects the efforts of many people, from craftsmen to designers to technical staff. The term apparel industry refers to a social phenomenon.

The advertising business aids the garment industry in expanding beyond its established borders, and the journeys of numerous companies demonstrate that the apparel industry cannot function without advertising.

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How Responsible Is Advertising In Apparel Industry

Vietnam To India: How Can the Indian Textile Sector Benefit

29 May 2022, Mumbai:

Indian textile industry introduction

No gainsaying that the Indian textile industry is a critical contributor to the economy in terms of export earnings/FOREX & 2nd most significant employer. Albeit the nation is among the top exporters to the world, increasingly there is the unambiguous realization that the industry continues to be an underperformer to its underlying potential.

In India, textiles have a long history. India, long known as the land of exquisite fabrics, witnessed a fall in exports by 3% and 18.7% in 2020 whilst Other low-cost nations, such as Bangladesh and Vietnam, have gained market share.

Other low-cost nations, such as Bangladesh and Vietnam, have gained market share during the same period.

Indian textile industry history

Several variables have influenced India's recent trade performance. India suffers from several cost disadvantages. Exporters face pricing pressure due to a lack of free or preferential trade agreements with significant importers, such as the EU, UK, and Canada for garments and Bangladesh for textiles.

It's challenging to get the correct return on invested capital because of the high cost of capital and significant reliance on imports for practically all textile machines. India is uncompetitive in the fashion sector due to longer lead times than Chinese manufacturers. In western economies, the practice of nearshoring hasn't improved matters.

Most varieties of cotton yarns, woven cotton textiles, and cotton knit fabric might be imported duty-free from India from January 1 next year, citing the India-Asean free trade agreement.

As a result, India may become a stable supplier of cotton, yarn, and textiles to Vietnam.

How did the Indian textile industry get back its dominance

The Vietnam Cotton and Spinning Association (VCOSANguyen )'s Hong Giang said there was plenty of room for economic collaboration in yarn, cotton, and textiles between the two nations.

"Indian firms excel at producing cotton fabrics and materials. From the standpoint of the Vietnam Cotton and Spinning Association, we welcome Indian investment in the fabric industry.

Importers and buyers from Vietnam interested in sourcing from India may take advantage of a discounted accommodation and travel package by attending the expo in India, he added.

The event, organized by the Indian embassy in HCM City in collaboration with VCOSA, drew nine Indian enterprises and local firms to the 18th Vietnam International Textile and Garment Industry Exhibition in HCM City from November 21 to 24.

Cotton and man-made staple fibers are the most common textile items exported from India to Vietnam.

Indian textile industry in global market

Simultaneously, all yarns and textiles are valued at less than US $ 20 million. It demonstrates that Indian cloth makers are ignoring chances.

And this is despite numerous attempts at all levels, as many corporations have participated in sourcing events held in Ho Chi Minh City from time to time.

Trade between India and Vietnam in textiles through the years has grown significantly, but there is still huge untapped potential. China's vacating space in the global textile trade thus it has opened an opportunity window.

But the million-dollar question is, "Will Indian manufacturers eventually catch the boat".

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Vietnam To India: How Can the Indian Textile Sector Benefit

Vietnam Apparel industry Contribution To Nation's GDP

27 May 2022, Mumbai:

The garment and textile sector is one of Vietnam's most important industries, with the country's second-largest export turnover. The industry's export value accounted for 16 percent of total GDP in 2019.

The textile sector has risen at an annual pace of 17 percent on average during the last five years.

Vietnam's lowdown on its foreign trade performance

According to the Vietnam General Statistics Office, Vietnam's apparel and textile sector generated US$39 billion in exports in 2019, an increase of nearly 8.3% year on year. The bulk of enterprises, 70 percent, are in the garment manufacturing industry.

Low labor costs and increasing textile exports to the EU, US, Japan, and South Korea are significant market expansion drivers. The garment and textile industry in Vietnam is divided into three sub-sectors: upstream (fibre production), midstream (fabric production and dyeing), and downstream (finishing) (garment manufacturing).

Because of the low quality, subsectors that generate fibers or fabric are mainly used for household consumption.

Apparel Sector: An Overview

Cut-Make-Trim (CMT) models are the primary operations in the downstream garment manufacturing industry, accounting for roughly 70% of Vietnam's overall clothing and textile sector.

CMT accounted for around 65 percent of overall exports in 2019, while more sophisticated business models such as OEM and ODM accounted for just 35 percent. Last year, Vietnam's economy grew by 7.02 percent, exceeding the National Assembly's aim and pushing the economy's scale to more than $262 billion, the highest level yet.

According to the Ministry of Planning and Investment, if the pandemic had just lasted for the first quarter of this year, the country's GDP growth would have been 6.25 percent (0.55 percentage points lower) in 2020, despite the National Assembly's approval of a target of 6.80 percent.

 

GDP Trekker

The GDP growth rate would drop to 5.96 percent if it continued in the second quarter (0.84 percentage points lower than the original target). This prediction was made before the outbreak in South Korea and Japan.

China, South Korea, and Japan accounted for 1/3 of Vietnam's export income and 2/3 of its import value in 2019, according to research by Bo Vit Securities Company (BSC).

If the outbreak had lasted only for the first quarter, BSC experts anticipated that the country's GDP growth rate would have been reduced by 1.05 percentage points from the objective of 6.80 percent.

Still, if it had lasted for six months, it would have been reduced by 1.55 percentage points.

The Secret Sauce of the Vietnam Apparel Sector

According to the General Statistics Office of Vietnam (GSO), the country's GDP declined to 3.80% in the first quarter of 2020, down from 6.80% in 2019. According to the International Monetary Fund (IMF), the economy would only grow by 2.70 percent this year.

According to Tran Thanh Hai, deputy general director of the Agency of Foreign Trade, Vietnam's exports and imports grew by double digits in the first quarter of 2022, reaching $176 billion, up 14.4% yearly.

During this time, exports increased by 12.9%. According to several analysts, overall export-import income might surpass $700 billion this year. 

Vietnam textile and apparel industry is on a continuous growth trajectory and keeps contributing over 15% of the country's total GDP & 18% of its exports.

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Vietnam Apparel industry Contribution To Nation's GDP

Vietnam Apparel Industry's Apparel 4.0 & Digitisation Adoption

24 May 2022, Mumbai:

Industries 4.0 is coming to Vietnam's garment/apparel and textile industry! There is no better approach to achieving growth and progress in an era dominated by automation.

ALSO READ The emergence of industry 4.0 technologies in 'Textiles & Apparels'

Industry 4.0 sounds fancy but is also something to look into.

With the emerging world, with the world moving into a technology shift, inventions, and inventions, everything shifting to digital, industry 4.0.

It works by collecting and processing all the critical and essential pieces of information and data.

It helps to make a detailed study and upgrade to higher and higher quality goods and products at an effective low cost.

A recent assessment of over 300 garment enterprises in Vietnam Apparel sector by the research team of the Vietnam National Textile and Garment Group and institutes revealed that the majority of these firms were trying to stay up with Industry 4.0.

This industry 4.0 comes with a beautiful merge of the environment and the digital world. The motive is to enhance the quality of life several folds higher with this increasing population globally. With these incoming innovations, there is a perfect future.

The efficiency of working will increase significantly, along with increased productivity. Transportation and communication costs will decrease, logistics and global supply chains will improve, and the cost of commerce will decrease, which will open new markets and drive economic development, ensuring a sustainable and prosperous future for you.

And how did they manage it? Many companies prioritized increasing productivity, reducing manufacturing costs and workforce, and implementing new technology.

Not unexpected, given the increased attendance of Vietnamese garment/apparel companies at some of Saigon's technical exhibits during the previous two years.

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Garment No. 10 Corporation, also known as Garco 10, has implemented current technologies in manufacturing and administration, reducing product production time from 1,980 seconds to 1,200 seconds and 690 seconds for each item. Instead of two people managing one machine, one person controls two.

It's worth mentioning that the company's productivity has increased by 52%, while the ratio of the defective good has decreased by 8%.

Furthermore, Garco 10 has decreased working hours by one hour daily and lowered yearly manufacturing costs by 5 to 10%. A Hung JSC, meantime, has begun construction on three plants in Phu Yen Province, with a total investment of VND500 billion.

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A suit factory with a 600,000-set yearly capacity, a weaving factory, and a knitting factory will make fashion and sports clothes. Once operational, the plant will employ 4,000 locals and is projected to help the company achieve annual exports of $50 million.

The issue presently is the rate at which these technologies are accepted in industrial units.

We are aware of the critical function that rudimentary data capture and planning software has played in the garment/apparel production process up to this point.

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They were generally accepted, adopted, and relied upon for their capabilities.

However, to unlock more significant levels of production competence and gain a competitive edge, Vietnam's apparel/garment industry must embrace the sophisticated technologies altering the industrial world.

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Digitisation

Vietnam v/s Bangladesh Apparel Industry: A Quick Comparison @ Global Marketplace

28 May 2022, Mumbai:

Vietnam Industry: Challenges & Opportunities

Historically Textiles and apparel (T&C) consistently rank among Vietnam's leading export industries. Due to their diverse skills and advantages, Bangladesh T&A and Vietnam Apparel will profit from most garment sourcing businesses' 'In China plus one approach.

According to WTO data, Vietnam will overtake Bangladesh as the world's second-largest garment exporter in 2020.

According to the BGMEA, the Bangladesh apparel sector recovered its position in the first half of 2021. Compared to Bangladesh, Vietnam garment exports have increased quickly in recent years. "Vietnam has had an FTA with the EU since 2019, which has aided its export growth.

Twist in the tail

Furthermore, China is significantly investing in Vietnam to diversify and increase the value of its exports. Bangladesh, on the other hand, Bangladesh is still competing with its low labor costs," Raihan Mahmud, marketing director of Bangladesh's Tex Garment Zone, mentioned in the news. "If exporters here can diversify their products and our government inks some new free trade agreements," Bangladesh has a greater chance of catching up.

Bangladesh Apparel sector and Vietnam apparel sector will benefit from most garment sourcing companies 'China plus one strategy because of their diversified capabilities and advantages. Vietnam will replace Bangladesh as the world's second-largest garment exporter in 2020, according to WTO data.

Vietnam's lowdown on its foreign trade performance

According to Tran Thanh Hai, deputy general director of the Agency of Foreign Trade, Vietnam's exports and imports grew by double digits in the first quarter of 2022, reaching $176 billion, up 14.4% yearly. During this time, exports increased by 12.9%.

According to several analysts, overall export-import income might surpass $700 billion this year. Bangladesh, according to the BGMEA, regained its position in the first half of 2021. Vietnam's garment exports have expanded rapidly in recent years compared to Bangladesh.

"Vietnam has had an FTA with the EU since 2019, which has boosted its export growth.

The increase, according to Hai, is due to the benefits of new-generation free trade agreements (FTAs) and regional trade agreements.

Below is the list of FTAs that Vietnam has concluded by now.

Vietnam - Japan Economic Partnership Agreement. ...

Vietnam - Chile Free Trade Agreement. ...

Vietnam - Korea Free Trade Agreement. ...

Vietnam - Eurasian Economic Union Free Trade Agreement. ...

ASEAN Agreements. ...

ASEAN - India FTA. ...

ASEAN - Australia - New Zealand FTA.

WTO Study

Following the publishing of a World Trade Organization (WTO) study, the competition between Vietnam and Bangladesh took on a new dimension.

As close competitors in the realm of garment manufacturing and exports, Vietnam surpassed Bangladesh in 2020 to become the second-largest readymade garment/apparel exporter after China's Textiles & Apparel Industry, shipping apparel worth the US $ 29 billion all over the world, even if Bangladesh rallied from behind to surpass Vietnam within a year of the WTO findings.

Garment exports, the lifeblood of Bangladesh's economy, and foreign earnings increased by 30.36 percent to the US $ 35.81 billion in the calendar year 2021, the highest level ever (earnings from apparel exports in 2020 were US $ 27.47 billion).

In 2021, Vietnam Textile Sector had a 9.89 percent increase, but the only US $ 32.75 billion in garment exports, compared to the US $ 35.81 billion in Bangladesh T&C. Vietnam gained $ 29.80 billion from garment exports in 2020.

"It was a temporary change in ranking in the global apparel export market because COVID-19 hit our production hard, negatively impacting exports," said Abdus Salam Murshedy, Managing Director of Envoy Textile, who added that with the outbreak of the pandemic in March 2020, the government-imposed lockdown resulted in factories' production taking a significant hit.

The Billion Dollar Question Is Bangladesh or Vietnam: Who will be the ultimate clothier in the world?

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Apparel

Vietnam's lowdown on its foreign trade performance in Q1 2022

26 May 2022, Mumbai:

Vietnam’s exports witness robust growth on the sound order pipeline

According to Tran Thanh Hai, deputy general director of the Agency of Foreign Trade, Vietnam's exports and imports grew by double digits in the first quarter of 2022, reaching $176 billion, up 14.4% yearly. Vietnam's economy continues to be optimistically expanding & witnessed in Q1 2022 that country is open for businesses and visitors.

During this time, exports increased by 12.9%. According to several analysts, overall export-import income might surpass $700 billion this year.

Thus the ministry of industry and trade (MoIT) has made extreme efforts to enhance how market information is delivered to exporters. On the other hand, foreign commerce is expected to increase by 6-8 percent this year to $363 billion, according to the Ministry of Industry and Trade.

FTAs Existing Pie 

The increase, according to Hai, is due to the benefits of new-generation free trade agreements (FTAs) and regional trade agreements.

Below is the list of FTAs that Vietnam has concluded by now.

Vietnam - Japan Economic Partnership Agreement. ...

Vietnam - Chile Free Trade Agreement. ...

Vietnam - Korea Free Trade Agreement. ...

Vietnam - Eurasian Economic Union Free Trade Agreement. ...

ASEAN Agreements. ... ASEAN - India FTA. ...

ASEAN - Australia - New Zealand FTA.

Shift Of Apparel Orders From China To Vietnam

The government has created various websites that provide domestic businesses with information updates. It recently unveiled the Vietnam National Trade Repository, which was constructed with the support of the UK government and themed websites hosted by Vietnamese trade offices throughout the world.

According to a news agency, the Ministry of Industry and Trade has also organized several virtual and in-person training courses on trade policies and FTAs, as well as given away various handbooks, publications, and materials that provide instructions on how to export to China and new markets such as the Middle East and Latin America.

Industry's Best Practices

A new manual is scheduled to be released soon, instructing businesses to transition from unofficial to legitimate quota export. Following strict epidemic restrictions, Vietnam's economy opened up last year.

The country's borders were reopened this year, and foreign flights were authorized, allowing specialists and tourists to come. Despite many instances in the past, a large vaccination deployment has kept severe sickness and deaths to a minimum, allowing industries to continue operating.

 

While Vietnam's economy is booming and traffic in key cities is approaching pre-pandemic levels, external concerns threaten to derail the country's progress.

Downward Growth Risks The Nation Will Have To Mitigate

1. Given the recent global IMF downward revision, global growth is now likely to stabilize into a 3.6% growth trajectory over 2022-23.

2. Given elevated persistent global inflation, the prospect of competitive exchange-rate appreciations looming larger is a real concern.

In face of the current sanctions against Russia which have upended the global economy, the foregone conclusion is that Vietnam's economy will not be spared the fallout.

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Vietnam's lowdown on its foreign trade performance in Q1 2022

Vietnam Industry: Challenges & Opportunities

24 May 2022, Mumbai:

According to govt sources, approx 2.5 million workers are engaged in this sector, authorities' support & assistance is paramount to factories in providing all critical support i.e. skill training, getting to receive cutting-edge manufacturing know-how advancing technology access to small businesses, and much more.

Most noteworthy is," The average skills of workers are par excellence giving the nation a competitive edge in the competitive landscape.

The United Nations Climate Change Conference was held in Glasgow, Scotland, in early November 2021.

Vietnam's Prime Minister, Pham Minh Chinh, reaffirmed his commitment to being a member of the global climate change solution.

COST-EFFECTIVENESS HELPS VIETNAM MAINTAIN COMPETITIVENESS 

The government plans to boost the percentage of renewable energy in its total primary energy supply to at least 20% by 2030 and 30% by 2045, phase out coal-fired power generation, and achieve net-zero emissions by 2050.

Trade can play a crucial role in addressing the climate change that Vietnam textile sector is experiencing and will face in the coming years.

Several enterprises and manufacturers have increased their e-commerce exports to capitalize on the channel's recent growth.

Despite their quick adaptation to the new conditions, companies face hurdles such as a lack of understanding of export regulations, rigorous product quality standards in international markets, and other shipping, payment, and customer service issues.

How Real Is the Shift Of Apparel Orders From China To Vietnam

Vietnam's T&C outstanding foreign trade performance in the first quarter of this year has sparked speculation about whether the Southeast Asian country has been stealing overseas orders from China supply chains as a result of sporadic outbreaks of the novel coronavirus on the Chinese mainland, which have hampered economic activity.

For Vietnamese enterprises and manufacturers, all of these challenges have influenced the rate of cross-border e-commerce growth.

According to the Ministry of Industry and Trade, import and export activities will confront both opportunities and problems in the second half of 2021.

Given the unpredictability of the COVID-19 outbreak in Southeast Asia, whether the pandemic is brought under control will be a significant factor driving import and export growth.

These obstacles do not prevent Vietnamese companies from expanding their cross-border e-commerce operations.

Some of the challenges stacked on the labour resources are the increasing number of FDI in other competitive sectors getting increasingly attractive such as Electronics providing distinctively better working conditions and less tedious jobs.

How Vietnam In 2021 Became 2nd Biggest Apparel Supplier 

Vietnam's e-commerce offers promising export opportunities. According to Amazon's newest report, the number of Vietnamese small and medium-sized firms (SMEs) selling on Amazon climbed by 15% from September 1, 2020, to August 31, 2021.

The ministry has organized trade promotion and supply and demand, connecting activities in Vietnam and other international markets.

One of the fastest-growing garment and textile markets in South East Asia, Vietnam is facing increasing competition from Asia and other markets.

In addition, in 2019, the Ministry of Information and Technology's IDEA signed a cooperative deal with Amazon Global Selling Vietnam.

In the fourth quarter of FY21, Vietnam was able to meet its target of $39 billion in textile and garment/apparel exports, a growth of 11.2 percent compared to 2020.

However, this does not indicate growth in market share, says Le Tien Troung, Chairman, Vietnam National Textile and Garment Group.

In 2021, the two want to enhance their relationship to help Vietnamese businesses fully exploit the possibilities of cross-border e-commerce.

Vietnam Is An Idea Whose Time Has Arrived

In the fourth quarter of FY21, Vietnam was able to meet its target of $39 billion in textile and garment/apparel exports, a growth of 11.2 percent compared to 2020. However, this does not indicate growth in market share, says Le Tien Troung, Chairman, Vietnam National Textile and Garment Group.

According to one of AEPC's reports," Vietnam factories seek a lead time of 90 days from the date of order to delivery and they do work on 45 days lead time in cases of Never out of Stock orders. The factories claimed that they are booked with orders for 6 to 8 months.

There are small medium and bigger factories, they classify a factory with 300 workers as MSME and the capital investment also has been taken into account for this classification.

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Vietnam's Existing FTAs & Its Impact On T&A Sector

28 May 2022, Mumbai:

Term of the trade

Free trade agreements are the ones between two or more nations on the terms of trade. They assess the value of taxes and charges imposed on imports and exports by countries.

With its admission to the World Commerce Organization (WTO) in 2007, Vietnam took a crucial step toward integrating with global trade and, as a result, entered into many free trade agreements.

Vietnam has been active in forging bilateral trade agreements with nations worldwide in recent years. "Vietnam has had an FTA with the EU since 2019, which has boosted its export growth.

The increase, according to Hai, is due to the benefits of new-generation free trade agreements (FTAs) and regional trade agreements.

Existing scenario

Below is the list of FTAs that Vietnam has concluded by now.

Vietnam - Japan Economic Partnership Agreement. ...

Vietnam - Chile Free Trade Agreement. ...

Vietnam - Korea Free Trade Agreement. ...

Vietnam - Eurasian Economic Union Free Trade Agreement. ...

ASEAN Agreements. ...

ASEAN - India FTA. ...

ASEAN - Australia - New Zealand FTA.

In addition, as a member of the Association of Southeast Asian Nations (ASEAN), Vietnam has been a signatory to numerous Free Trading Agreements (FTAs) negotiated by the regional trade bloc.

Despite applying for World Trade Organization (WTO) membership in 1995, Viet Nam did not focus on WTO membership until 2001, after successfully establishing a bilateral trade agreement (BTA) with the United States (US).

Competitive cutting-edge 

Although the BTA was viewed as a stepping stone to WTO membership, the US proved to be a problematic negotiator during bilateral discussions for PNTR status.

The coverage of Viet Nam's FTAs has expanded to include the movement of commodities and trade in services, investment, and other elements of the trade.

The agreement creating the ASEAN-Australian-New Zealand Free Trade Area (AANZFTA), is the most ambitious of the accords Vietnam has signed. This contrasts with earlier ASEAN+1 FTAs, organized around a framework and then separate agreements.

All of the elements in the AANZFTA were signed as part of a single document.

Evaluation of the Potential Impact of FTAs

Viet Nam's exporters have profited from expanded export markets and lower tariff and non-tariff obstacles as a result of FTAs.

Compared to the ASEAN-6 and its FTA partners, Viet Nam was given lengthier implementation dates for tariff reduction/elimination.

In addition, Viet Nam has been recognized as a complete market economy by India, Australia, and New Zealand as a result of FTAs between ASEAN and its partners. Viet Nam has been able to participate in deeper regional economic integration due to the development of FTAs.

Vietnam's pragmatic approach toward stitching free trade agreements is serving the nation a most valuable tappable opportunity for foreign investors that have not really exploited their potential benefits.

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Vietnam's Existing FTAs & Its Impact On T&A Sector

Vietnam Apparel Industry's Best Practices

24 May 2022, Mumbai:

An Overview

They have their own spinning mills but they don’t produce good quality yarn due to obsolete machinery. And they have limited processing houses to process the fabrics hence they bank on ready-to-cut fabric imports.

90% of the factories work on CMT (Cut, Make & Trim) base productions, the sourcing company’s source fabrics from China, Korea, India, Pakistan, Italy, and Turkey.

Almost all the factories employ 70% women workers.

It's business as usual in the laser section of one of Vietnam textile sector's biggest textile mills, where Phan Chi Cao, 27, works.

He employs laser equipment to "dry process" denim clothing, which is a technique for achieving the cool, faded look that certain customers like.

Cao can dry roughly 300 jeans per day using the lasers, a significant increase in production over the labor-intensive traditional technique, which only allows for 20 to 30 per day and exposes workers to dangerous chemicals.

This laser equipment was introduced to the facility by Cao's business, Phong Phu International (PPJ), as part of a long-term strategy to assist Vietnam's textile sector to rise as a key textile sourcing hub in Asia.

Apparel 4.0 & Digitisation Adoption

The Vietnam Improvement Program, an IFC project to increase resource efficiency in the Vietnamese apparel/garment, textile, and footwear sector, aided PPJ's efforts in 2016.

IFC now works with 70 manufacturers that serve significant retailers and garment businesses, such as VF Corp., Target Corp., Puma, New Balance, and Adidas, collaborating with the Clean Technology Trust Fund and Korean Green Growth Trust Fund. IFC initially analyzed PPJ's ability to achieve optimal energy and water efficiency.

Following this study, IFC assisted the firm in adopting upcoming technology and best practices that would help it achieve its objective. In 2016, and 2017, the business adopted various resource-efficient solutions at its Thanh Chau wash facility, which employs 14,000 people and supplies denim, knit, and woven clothes to worldwide brands.

global competitiveness to take on rivals such as Bangladesh

In terms of Vietnam apparel/garment exports, it is becoming increasingly significant. The country is presently one of the top five worldwide garment exporters, with most of its wares going to the United States, the European Union, and Japan.

The textile and garment industry is one of Vietnam's largest and most important industries, contributing significantly to the country's economic growth.

Approximately 2.7 million people are directly employed by the business (75 percent of them are women), and millions more are indirectly supported by remittances given to employees' relatives across the country.

Challenges & Opportunities

The textile and garment firm in Vietnam has a long history and heritage. Women in the nation had known sericulture for hundreds of years, weaving thread into exquisite silk with simple equipment, yet their clothing was full of subtle details and great value.

Vietnam's textile sector, on the other hand, began to flourish in the Northern area in 1958 and the Southern region in 1970. The French developed various large industries in Nam Dinh, HaiPhong, and Hanoi.

To combat the high cost of raw materials, the Vietnamese government has already begun investing heavily in developing support industries, and Vietnam was the second-largest investor in shuttleless looms and the largest investor in-ring spindles and open-end rotors among ASEAN countries from 2006 to 2015.

The country's knitting industry has also grown significantly. In Vietnam's Ninh Thuan province, a cotton manufacturing factory called "Rang Dong Industrial Park" with a land area of 1,500 hectares and a capital investment of US$400 million has been created, with an annual production value of US$3 billion.

Vietnam is exporting majorly to the USA (45%), EU (17%), Japan (12%), South Korea (10%), China (3%), Hong Kong (1%), and Mexico(1%), etc.

MADE IN VIETNAM” is an envious global tag, this respect was earned on the back of their efficiency & enduring quality.

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How Vietnam In 2021 Became 2nd Biggest Apparel Supplier & Its Road Ahead

23 May 2022, Mumbai:

COST-EFFECTIVENESS 

Vietnam surpassed Bangladesh as the world's second-largest garment exporter for the first time in 2020. Bangladesh has been the second-largest clothing exporter for five years before 2020.

Nonetheless, Vietnam's edge over Bangladesh in 2020 was tiny, and both nations' garment exports were overshadowed by China's.

Furthermore, they decreased in 2020, but at half the rate of Bangladeshi exports. In this editorial, Robin Anson looks at the elements that have contributed to the success of Vietnamese textile exporters, including considerable foreign investment, particularly from China.

However, he points out several red flags, such as supply limits caused by manufacturing shutdowns ordered to stop the spread of the COVID-19 epidemic.

Due to its strategic location and advantages in shipping, competitive labor, and production costs, Vietnam has become a top destination for manufacturing investment.

In the garment enterprises, 40% of investment has been made through FDI.

Vietnam's growth is how realistic!

Global businesses seek to diversify, increase the resiliency and connectivity of their supply chains, and reduce reliance on a single country. Compared to other Southeast Asian countries, Vietnam has international airports, seaports, and rail ties that help with manufacturing and transportation.

Manufacturing and processing continued to lead in foreign direct investment (FDI) in 2020, accounting for 58.2 percent of total FDI.

With its help, Vietnam's economy is expected to regain speed in 2022, with a GD 6.5 percent GDP growth.

LOW DOWN ON BANGLADESH MARKET

Bangladesh’s exports to traditional markets including the US and the EU grew in 2021. Exports to its single largest market, the US surged from 17.5 percent in 2018 to 20.30 percent in 2021, says Faruque Hassan, President, BGMEA.

It totaled $7.28 billion in 2021. The share of woven garment exports was worth $4.65 billion while knitwear exports totaled $ 2.62 billion. For the first time, Bangladesh’s RMG export to the US exceeded $7 billion in a year, a growth of 43.62 per cent compared to 2020, says Hassan.

COVID-19 caused substantial supply chain disruptions in the industrial industry in 2020-2021.

What works in the Vietnam industry favour

Manufacturing production in Vietnam has been reduced due to temporary firm closures, transportation issues, and employee shortages. Several fundamental elements drive the manufacturing business.

To begin with, Vietnam is marketed as a low-cost producer with cheap labor expenses.

Vietnam's labor expenses are half that of China's, at US$2.99 (VND 68.000) per hour against US$6.50 (VND 148.000) per hour. This helps cement Vietnam's position as a more cost-effective alternative to its regional competitors.

Second, Vietnam has a vast and well-educated worker force, making it a desirable industrial hub. Furthermore, the government has sponsored further vocational education and training programs to equip the workforce better.

The government has implemented various policies and programs in response to the present labor crisis and the lack of trained personnel in critical areas such as IT.

Reflecting on the Better Work ethos Vietnam continues to strive to accomplish ongoing competitiveness both by improving the working conditions in the country’s garment industry also by unmatchable productivity/indomitable work spirit.

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 How Vietnam In 2021 Became 2nd Biggest Apparel Supplier & Its Road Ahead

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