The textile industry has not developed properly
The textile and garment sector is making a notable contribution to the overall growth of Vietnamese economy with Vietnam`s highest export turnover.
However, economists say that the internal difficulties of the textile and garment industry are becoming a barrier to the growth of the industry. The biggest difficulty is that the textile auxiliary industry has not developed so that enterprises cannot integrate.
Although the export turnover is large, but because of the main mode of production, the value added of the textile and garment industry in Vietnam is still low. The reason is that the development of supporting industries of the garment industry is not worth the cost, logistics costs are too high, making the industry difficult to participate in the global supply chain.
Dang Vu Thanh, Deputy Chairman of the Vietnam Logistics Association, said that if the textile and garment export turnover reached $30 billion a year, the logistics cost will be $2.79 billion. Another move is $1.70 billion. In addition, the inadequate use of logistic services makes the enterprises less active in supplying raw materials, does not control the delivery time as well as controlling the costs and risks arising.
According to experts, to integrate, enterprises need to select equipment from advanced industrial countries to orient investment in new technology to gradually increase the localization rate and more sources of raw materials, active to meet the demand of foreign buyers, to increase the added value of products, to contribute to the development of Vietnam's textile and garment industry, to integrate more effectively into the region and the world.
Deputy Minister of Industry and Trade Cao Quoc Hung pointed out that weaknesses are the main reason for the low value-added textile and garment industry in comparison with other countries in the world. Global supply chain requires the best steps in terms of quality, price and delivery time. To overcome these problems, the Government and ministries are gradually removing difficulties, creating favorable conditions and promulgating mechanisms and policies for the development of supporting industries, including products of textile industry.
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