How to increase chain link in the textile industry?
Mr. Vu Duc Giang, President of Vitas said that the workshop aims to analyze the role of business chain linkages in the industry, opportunities and challenges, and propose solutions to enhance business links between businesses. industry as well as the entire industry.According to Mr. Vu Duc Giang, Vietnam's textile and garment industry is one of the industries with the largest export turnover and growth rate, contributing over 15% of the country's total export turnover.

Although exporting 39 billion USD in 2019, the textile and garment industry has to spend 13.5 billion USD on fabric import. Import up to 70% of fabric materials for the production of export goods.Translation COVID-19 has been disrupting the method of operating the global supply chain, making it difficult for businesses in general and garment enterprises in particular to model and assess risks. In the first 6 months of 2020, Vietnam's textile and garment export turnover reached US $ 15 billion (down 16.65%), imported US $ 9.3 billion (down 16%) over the same period last year.

Obviously, supply chains in every country, including Vietnam and in every economic sector, are severely affected. Compared to other countries in the region, Vietnam has done a good job in preventing pandemics and reopening the economy. The textile and garment industry is also slowly transitioning from crisis response to preparation for recovery.Mr. Pham Quang Hai, Sales Director of Bao Minh Textile Company, said that Bao Minh in particular and Vietnam's textile and apparel industry are facing the opportunities and challenges of free trade agreements, strengthening links. doing business in the textile and garment industry to promote exports and participate more deeply in the global value chain is an urgent task to create a consensus power to build product brands, improve competitiveness. competition in domestic and international markets.Overview of Workshop "Promoting chain link in the textile and garment industry" organized by Vietnam Textile and Apparel Association Photo: Hang Tran / BNEWS / TTXVNThe key question for the textile industry now is how to better prepare the supply chain for future crises.

The trend of big buyers in the US, Japan and European countries is to choose enterprises with full production capabilities instead of ordering by outsourcing to shorten the time to produce new products. Shortening the time to fulfill orders means businesses will have a more competitive advantage in costs and increase revenue.To do this, the Vietnamese textile and garment industry needs to move upstream in the textile value chain, hold stages in the production of raw materials, and this is a long-term strategy to maintain and improve profits. competitive position in Vietnam's garment exports.Recently, the Vietnam - European Union (EU) - EVFTA Free Trade Agreement has been ratified by the National Assembly and officially prepared to take effect, accordingly, Vietnam's textile and garment products will be reduced. 42.5% of tariff lines when exporting to the EU market.

This is the "escape" for Vietnam's garment and textile to overcome the crisis from the COVID-19 pandemic.To take full advantage of tariff preferences from CPTPP or EVFTA, the Vietnam Textile and Apparel Association thinks that there should be policies to encourage and create conditions to attract investment from domestic and direct investment enterprises. foreign countries (FDI) in the production of raw materials.In particular, there must be a mechanism to promote the linkage between raw material producers and product manufacturers, forming a closed link chain, meeting the requirements of rules of origin, promoting to build textile industrial zones with modern wastewater treatment for the weaving-dye-sewing-complete cycle, contributing to global supply and reducing import dependence.

Currently, the Ministry of Industry and Trade has also given a number of solutions to promote cooperation and association in production to build a domestic linkage chain.Accordingly, the Ministry of Industry and Trade encourages businesses to switch garment processing to fulfill FOB orders, raising awareness of using domestic raw materials; highly appreciated the role of commodity associations in calling for investment, connecting with localities that are still receiving investment projects in textile and dyeing to introduce and persuade foreign investors.The Ministry of Industry and Trade will soon complete to submit to the Prime Minister for approval the Strategy for the development of Vietnam's textile and garment industry to 2030, with a vision to 2035 as proposed previously./.