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Latest News: Vietnam's textile dyeing sector needs $15 billion investment.

Even as Vietnam's textile industry seeks to derive the maximum advantage from the Trans Pacific Partnership (TPP), the sector is grappling with low labour productivity and a serious shortage of textile and dyeing materials. According to one estimate, the dyeing sector needs a massive investment of $15 billion.

Le Tien Truong, general director of the Vietnam Textile and Garment Group (Vinatex) pointed out that in 2015, Vietnam exported $27.5 billion of garment-textile products but it had to spend $14 billion to import raw materials.

“Thus, Vietnam needs to overcome the problem of input raw materials," Truong said at a seminar on Vietnam's garment industry at Ho Chi Minh City.
Source
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Why most Vietnam Textile Factories won’t benefit from TPP Tax Incentives

Sourcing raw materials like cotton or processed material like spun yarn has always been the achilles heel of Vietnam’s garment and textile industry. More than 3/4 of the textile companies in Vietnam need to import raw materials. Why? Because local businesses are short of capital to invest cotton production and yarn spinning. This fact makes them them unlikely to enjoy tax incentives from Trans-Pacific Partnership (TPP) agreement which is expected to be signed this year. The reason is that in order to qualify for the tax reduction the raw materials must originate in a TPP member county. If a Vietnam garment factory buys fabric from China and China is not a TPP member then not tax reduction. For more info about this Vietnam Garment Industry News click the link.
Trans Pacific Partnership

Hong Kong Fashion Week

Will you be going to the Hong Kong fashion week from 6th to 9th of July this year? The fashion show takes place from Monday to Thursday at the Hong Kong Convention and Exhibition centre in the heart of Hong Kong island. This fashion week is the 22nd one in a row; last year there were 1,255 exhibitors and 16,875 visitors. Apparently, it is the fashion Hub of Asia where designers and buyers come together to see what is trending. Is it true?

There are 21 product sections. Fashion Gallery is the largest section, showcasing designer labels and top brands, while International Fashion Designers’ Showcase is an exciting section for trend-setters. Men In Style gives exhibitors of menswear prominence. Retailers are value-adding through accessories and exhibitors are catered for in a number of sections such as World of Fashion Accessories, Handbags Select, Salon of Scarves and Shawls and Fashion Jewellery Feast. For a complete list visit the Hong Kong Fashion Week website.

Hong Kong Fashion Week

Israel Fashion Group builds a factory in Vietnam

Delta Galil Industries Ltd (Israel) is planning to build a factory named Delta Galil Vietnam in Cat Trinh commune, Phu Cat district, Binh Dinh province in 2015.

This area is one of five central key economic zones in Vietnam. Delta Galil hopes to benefit from labor sources and accessible ports in Binh Dinh. Binh Dinh has attracted many foreign investments in different sectors such as oil and gas, logistics, and high tech industries. In January, the Binh Dinh Provincial People’s Committee approved Delta Galil Vietnam’s license. The total factory area is 18,000 square metres with the total investment capital of 13 million US dollars. Having already completed the first phase of planning, Delta Galil Vietnam is completing factory design and environmental impact assessment. It will begin operations in the fourth quarter of 2015. According to the investment license, Delta Galil Vietnam will specialize in producing fiber, woven fabrics, knit fabrics as well as sewing readymade garments. The new factory is expected to reach annual revenue of 11 US million dollars in the first year. They plan to produce 1.3 US million garments each year.

Delta Galil Industries Ltd is a leading global apparel manufacture and distributor that sells famous brands such as Wilson, Maidenform, Calvin Klein, Nike and Hugo Boss. If you want to get more information, please visit Vietnam garment industry news.
Cat Lai Port in HCMC

Vietnam Garment Industry News: Myanmar Worker Disputes in 2015

One of the big problems that impacts to orders from abroad and foreign investment is worker dispute.

Myanmar workers are demanding an extra $28 per month in wages while their minimum wage is about $50 per month. Because Myanmar minimum wages are too low so there are many labor disputes in this country. Workers stop working even some striking workers use violence with South Korean manager and a group of Myanmar workers in Yangong. These causes the scaring of foreign investors and some decide to leave Myanmar in other to invest in another country.

South Korean ambassador Lee Beak called on the government to help resolve dispute by some suggestions such as completing the enactment of laws governing foreign investment, settlement of disputes, minimum wages, employment and skill development. If the government can do these suggestions, Myanmar will attract more foreign investors than now.

Check out Mmtimes or Vietnam garment industry news to get more information details about Myanmar worker disputes.
Picture of Myanmar Dispute

Chinese projects need quality control scrutiny.

According to statistics of Foreign Investment Agency under the Ministry of Planning and Investment, Chinese investors had poured nearly $8 billion into 1.112 projects in Vietnam and become the 9th in term of Vietnam’s foreign investors. Most of Chinese projects are focused on energy and they are known as the main contractors in 15 of Vietnam’s 20 thermal power projects.

One of China first biggest projects in Vietnam is $2 billion 1,200MW Vinh Tan 1 thermal power plant. Others are $2.1 billion Mong Duong 2 thermal power plant and 1,245MW Duyen Hai 1 thermal power plant which 85% investment was sourced from China Export- Import Bank. In addition Shanghai Electric Power Generation Group and Dongfang Group also have participated in Quang Ninh 1 vs 2, Haiphong 1 and Vinh Tan 2 thermal power plants.

China’s investment in Vietnam has dramatically increased both in term of value and project number. However Vietnamese government should concerned more strictly about the quality control to reduce the bilateral trade gap.

If you want to get detail information about this article, check out Vietnam garment industry news on Vietnam net website.
New Plant in Vietnam

Planning Indian Garment and Textile Industrial Park in Vietnam

According to Vinod K. Ladia, India is planning to establish the first 300 million dollars industrial park near the Southern Vietnamese economic center of Ho Chi Minh city.

The Indian companies are expected to work in groups and operate in the same field to take advantages of infrastructure, save production costs and enhance competitiveness in this industrial’s operational model. The new industry will focus on garment, fabric materials, products in the fields of healthcare, household appliances and furniture. Their products are provided on site for Vietnam enterprises, service export productions and domestic consumptions. This project will bring mutual benefits: a new export market for India and a plentiful material supply for Vietnam with lower cost.

SRTEPC have sent information to the Vietnam National Textile and Garment Group and the Vietnam Textile and Apparel Association to promote investment in the project. Now they are waiting for Vietnamese government answer.

If you want to get more information about this project, check out Vietnam garment industry news on Tuoi Tre News.
Textile Company in Vietnam

Vietnam signs Free Trade Agreement with Russian Led Economic Union.

Vietnam signed free trade agreement (FTA) with the Eurasian Economic Union (EEU) in Kazakhstan on May 29 after more than two years of negotiation. The EEU includes Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan. The EEU has a combined population of 181 million and gross domestic product of around $2 trillion.

By signing the FTA, Vietnam will have opportunity to access 181 million by exporting commodities such as agricultural products, seafood products, textiles, footwear, furniture and some processing products. EEU will apply the tax rate of 0% for all marine products of Vietnam after the FTA enters into force. Vietnam agreed in return to open the market for some routine livestock products, industrial products including machinery, equipment, and vehicles of EEU. By signing the FTA, the EEU aims to increase its foreign trade turnover with Vietnam to at least $10 billion.

The FTA will enter into force 60 days after it is ratified. This is the second FTA Vietnam has signed this year. On May 5, Vietnam entered an FTA with South Korea. The excitement is that Russian clothing brands will be increasing their business in Vietnam before the end of the year when the FTA takes effect.

You can get more info about Vietnam garment industry news on The U.S. Embassy Hanoi.
Vietnam signed FTA with Russia

Vietnam Garment Industry News: Is garment production really leaving out of China?

China is still the biggest garment exporter in the world despite of stricter environmental regulations, higher land and labour costs in this country.

The Chinese annual turnover decreased 11.5% in 2014 but their combined profits increased 6.1%. The total of garment manufacturers in China is 10,916 with 29.6 billion pieces last year, up 1.6%. There are two bullish apparel producers that are big competitors with China now. The first is India. A comparative weak Indian rupee, lower labour and energy costs have made Indian a cheaper market for international apparel sourcing. The second is Bangladesh, which employs 4.5 million in 4,500 factories, is now the world’s second biggest garment exporter, after only China.

Many people think that orders is leaving China because labor cost of China is more expensive than other countries such as India and Bangladesh. However the notion of garment production leaving China is nothing but a myth, Mike Flanagan said. Check out Just Style website to get more information about Vietnam garment industry news.
Garment Production in China

Vietnam Garment Industry News: India’s First GOTs Conference

India’s first Global Textile Standard (GOTS) international conference was held successfully on 22nd May 2015 in Mumbai, India. It was attended by more than 250 delegates from 12 countries including Brands & Retailers, Buying Agents, Manufacturers of Textiles and Additives (dyes, chemicals, enzymes),Trade Associations, NGOs, Academics and etc.

What is GOTS and why is it important? “The Global Organic Textile Standard (GOTS) is recognized as the world's leading processing standard for textiles made from organic fibers. It defines high-level environmental criteria along the entire organic textiles supply chain and requires compliance with social criteria as well.”

It is important because if you have a t-shirt in hand that is marketed as “organic cotton” then how can you know for sure? You are paying a premium price for organic cotton but what if – in fact – it’s GMO cotton. Would you be upset just by the thought that the seller is tricking you? Do you trust Indian or Chinese suppliers to be good on their word when they tell you that the cotton and all the processing the cotton went through was natural? That is where GOTS comes in. It’s an institution that is supposed to be trust worthy that generates reliable documents that tell us, “Yes, this cotton fabric is organic.”

Do I know any reliable suppliers of organic cotton in Vietnam. No. We turn down inquiries for organic cotton because we have to buy it through agents or from spinners in India or China who we don’t trust. One source that I do trust is in Berlin Germany. His name is Benjamin.
India’s First GOTS Conference

Why China is still the leader?

China is still the industry leader in clothing with 10,916 apparel manufacturers producing 29.6 billion garments in 2014. Why move production to India, Vietnam or Bangladesh?

Shipments from China to US declined 12% in the second quarter of 2015. That is the second declined this year. Salaries of Chinese clothing workers have increased so Chinese textiles and clothing manufacturing is more expensive. It’s true that labor cost is increasing in China but China still has advantages that allow it to be cost competitive. Experts believe that China is consolidating rather than declining. Neither Vietnam nor Bangladesh can match China in terms of it’s robust A to Z supply chain, experienced and vast labor force and perfected manufacturing processes for all types of garments.

So why go to India, Vietnam or Bangladesh? For basics you might be able to find lower prices due to lower labor costs. For non-basics the price will be the same or more expensive than China but you will at least have developed an alternative manufacturing source to spread your risk and keep your existing Chinese manufacturers under pressure to be competitive.

Check out Just-Style website to get more Vietnam garment industry news.
Vietnam Womens Clothing Manufacturer

Working Conditions in Vietnam Garment Factories 2015

Are working conditions in Vietnamese garment factories that bad? The International Labour Organization (ILO) is now carrying out inspection campaign to find out.

The ILO campaign will finish this year and inspect 160 SME garment factories in 12 provinces in Vietnam. The goal is to inspect working conditions of about 2.5 Vietnamese workers, improve the knowledge and skills of workers, and educate Vietnam labor inspectors. For more information you can visit the ILO website cited below.

As an insider I’d like to share with you my perspective: working conditions in Vietnamese garment factories are good. The main reason working conditions are good has to do with the collective conscience of the Vietnamese people. Compared to other cultures the Vietnamese people have a high standard to mutual respect. I have been in more than 30 Vietnamese factories and witnessed mutual respect between managers and workers. Unlike India where a cast system exists or unlike China where the mutual respect is low the Vietnamese take care of one another naturally. I have in mind the Muslim way of working in Bangladesh where the mutual respect between factory owner and worker is…. different. Vietnam is not like China, India or Bangladesh. There is an inherent natural high regard for quality of life shared by all. All this being said an industrial environment is no five star hotel. Working hours are long, temperature on the factory floor is hot and the management always demands efficiency. Point is that Vietnamese owners and workers have a lot of self-respect and mutual-respect; you can see it in the working conditions of a factory when you visit. This is Vietnam garment industry news.

Visit ILO website to get more information about Vietnam garment industry news everyday.
Vietnam Womens Clothing Manufacturer

Vietnam Garment Industry News: Are Vietnamese owned factories dying?

Vietnamese factory owners are loosing to foreign owned sewing factories; namely Chinese owned. Why?

The article suggests that Vietnamese owned garment exports were only worth 6 billion out of 20 billion USD in 2014. It’s getting harder and harder to compete in pricing (FOB or CMT) with foreign owned sewing factories. 70 to 80% of foreign owned sewing factories in Vietnam are of Chinese origin. They exist under the names of Hong Kong and Taiwan companies. They have advantages in large capital, access to cheap fabric in China and skilled management. Thus they can export garments with lower prices than Vietnamese owned factories. Secondly, foreign owned sewing factories offer slightly higher salaries to attract workers from Vietnamese owned factories – driving up the average labor cost for everyone.

The main advantage that Vietnamese factories have compared to larger foreign owned sewing factories is the willingness to do smaller order quantities – but then it is hard to offer low prices and still be profitable… hence the reason Vietnamese owned sewing factories are dying. In order for Vietnamese owned factories to survive they need to add value in every aspect of the business like better customer service, better pricing, faster delivery times and consistent quality. The good ones are doing just that.This is Vietnam garment industry news on Dien dan doanh nghiep website.
Vietnamese sewing factory

Huntsman is selling dyes stuffs in Vietnam.

Huntsman Corporation is a global manufacturer of industrial chemicals. Some are used in the garment industry. They are expanding in Vietnam as the garment industry grows in Vietnam.

According to an article in Textile Web, Huntsman has a new bonded warehouse in Long Binh ward, Dong Nai province – 70 miles outside of Ho Chi Minh city. The purpose of the new bonded warehouse is to offer shorter order lead times and a faster response to one-off deliveries. They have big plans to support large garment operations in Vietnam as the overall capacity grows thanks to free trade agreements like Trans- Pacific Partnership which is still under negotiation.
Vietnamese sewing factory

Vietnam Garment Industry News: Cambodian workers want $177 i nstead of $128.

That’s $128 per month and it does not allow working in the city of Phnom Penh to live above the poverty line. $177 per month will which is why garment workers are protesting.

The number of strikes at garment factories is increasing in Cambodia according to figures published by Garment Manufacturers Association of Cambodia showed the number of strikes at Cambodia’s garment factories during the first three months of this year rose nearly 74% on the same period in 2014. The Association’s member companies logged 40 strikes between January and March this year. In 2014 there were just 23 strikes in the same period.

For the time being Cambodian garment workers are earning $128 per month and perhaps before 2017 they will earn $177 per month.

Sewing Factory in Cambodia

Kit and Ace is a new luxury brand in apparel industry.

Kit and Ace is a new luxury apparel brand that was launched by JJ Wilson and Shannon Wilson. They are the son and wife of Chip Wilson, the founder of Lululemon Athletica.

JJ Wilson and Shannon Wilson have invested about 7 million US dollar in Kit and Ace. They focus on luxury casual cloth, especially shirt (priced at 68 US dollar to 138 US dollar) with new cashmere blend material that is both soft, comfortable and machine washable. Until now, they have opened 7 Kit and Ace stores in the U.S. They are planning 50 more stores in U.S, Australia and Japan. Actually, Kit and Ace has the same operation with Lululemon, a famous brand in sportswear. They both focus on technical fabrics and they both invite customers into their stores. But Kit and Ace opens supper clubs in comparison with Lululemon’s yoga classes.

Kit and Ace is new brand in luxury apparel industry. In the future, the Wilson will open more stores not only in U.S but also in Asia and bring Kit and Ace come to closer with customers all over the world.
Kit and Ace Store

Vietnam International Fashion Fair 2015

VIFF 2015 (Vietnam International Fashion Fair) took place at Tan Binh exhibition and convention center in Ho Chi Minh City on September 18.

This fair was held by VITAS and Vinatex with 3 main aims. The first aim is to help Vietnamese garment manufacturers to introduce and promote their brands and products. They can meet suppliers in different sectors like fabrics and accessories to do more business. Many famous textile businesses in Vietnam such as Viet Tien, Viet Thang, Nha Be and Dong Xuan took part in this exhibition. The second aim is to help foreign companies to understand more about the Vietnam textile industry by introducing Vietnamese garment production and export capacity. The last aim is developing Vietnam textile and garment products in the domestic market with the slogan “Vietnamese produces high quality products”.

VIFF 2015 finished successfully on September 23, 2015. It was a bridge that connects Vietnam garment industry to domestic customer as well as foreign companies all over the world. This is Vietnam garment industry news.
International Fashion Fair in VN 2015

Vietnamese Sewing Wage Hike

After five hours of meeting on September 3, 2015 the Vietnam National Wage Council decided to raise Vietnamese minimum wage by 12.4%.

The Vietnamese sewing wage increase will take affect on January 1, 2016 if the Vietnamese Government approves it this October. Minimum wage in Region I (urban Hanoi and Ho Chi Minh City) will be 162 US Dollars, Region II (rural Hanoi and Ho Chi Minh City, urban Can Tho, Da Nang and Hai Phong city) will be 144 US Dollars, Region III (Bac Ninh, Bac Giang, Hai Duong and Vinh Phuc Province) will be 127 US Dollars and the last region (other localities) will be 112 US Dollars in details.

This is Vietnam garment industry news on Tuoitre News.
Vietnamese Garment Industry

Vinatex has built a sewing factory in Quang Binh

This is Vietnam garment industry news: Vietnam National Textile Garment Group (Vinatex) is constructing a sewing factory in Quang Binh province that started on August 25, 2015.

Vinatex Quang Binh factory’s total is 4.9 ha and it costs 7 million US dollars. It will produce over 12 million products per year with 60 sewing lines. Vinatex projects 37 million of US dollars in turnover per years. Once finished, the factory is expected to create over 3,000 jobs.

Vinatex has divided construction progress into 3 stages. The first stage started in August and should finish in the first quarter of 2016. The first stage goal is to build 20 sewing lines. The second stage will start in the first quarter of 2016. The last stage will start in the third quarter of 2017 and finish in 2018.
New Sewing Factory in Quang Binh

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Four things you must know first!
1. Why you need tech packs?
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3. How to find a reliable sewing factory in Vietnam?
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Thai Son S.P Co., Ltd.
143/11H Ung Van Khiem
Ward 25, Binh Thanh District
Ho Chi Minh City, Vietnam
Zip Code: 700000
Tel. +84 942324935
Attn: Chris Walker

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