How Vietnam, a country short of textile raw materials, has become a major textile exporter

Release time:

2019-02-28

As a country with a shortage of textile raw materials, what if Vietnam is among the ranks of textile powers? Why can it attract major textile enterprises to develop their production bases locally, and why are the textile heroes of large factories all going to Vietnam to open up textile territory in China, which is also a major textile country?

For China, Vietnam's textile industry does not have an advantage. No matter in textile technology or raw material production, the technical difficulty coefficient of special yarn and differential yarn samples in China is far higher than that of pure cotton. In terms of textile raw materials, China, as a big cotton producer, will produce 5.111 million tons of cotton in Xinjiang in 2018. However, in China, with the improvement of the numerical industry, the demand for cotton and market digestion have increased, and labor and production costs have continued to increase. Some large textile companies have begun to shift the focus of their production plants to Southeast Asian countries with lower labor and production costs. As a result, Vietnam has sold out.

According to the data provided by the Vietnam Cotton Yarn Association, Vietnam's cotton imports in 2018 were 1.568 million tons with a value of US $3.011 billion, up 21% and 27.5 respectively. In 2018, Vietnam imported 1.0348 million tons of cotton yarn with a value of US $2.419 billion, up 17.8 percent and 32.8 percent respectively. The yarn export volume was 1.4786 million tons, and the export value was 4.025 billion billion US dollars, up 9.6 and 12.0 respectively. (Source: China Textile News)

Vietnam's cotton imports have steadily increased in recent years, and as the focus of China's textile industry has slowly shifted, Vietnam's textile production has also increased. And Vietnam's current largest textile enterprise, China's investment enterprise, Tianhong Textile Group, has transformed from a cotton yarn manufacturer to a textile enterprise with integrated industrial chain. If the whole industry chain strategy is successful, Tianhong Textile will become one of the most competitive textile and garment suppliers in the world, and its textile industrial park will easily seize the textile and garment orders in mainland China and lay a long-term competitive advantage.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (ComprehensiveProgressiveTrans-PacificPartnership) entered into force in Vietnam on January 14, 2019. The impact of CPTPP on Vietnam's economy will largely depend on Vietnam's ability to seize opportunities and overcome challenges. The CPTPP will phase out 98 percent of tariffs on agricultural and industrial products, liberalize investment regulations and strengthen the protection of intellectual property rights. Joining CPTPP has brought an unprecedented market to Vietnam, and "made in Vietnam" may become the biggest winner. (Source: China Cotton Network)

As a "new star country" in the textile industry, Vietnam's control of raw material imports and the process of finished fabric products downstream are not very mature. However, in recent years, the development is relatively rapid, and I think about how attractive cheap labor is to the market. However, national policy guidance is more important, and actively learn textile technology to stabilize its development.

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