EXPANDING MATERIALS AREAS FOR VIETNAM'S TEXTILE INDUSTRY

EXPANDING MATERIALS AREAS FOR VIETNAM'S TEXTILE INDUSTRY
Date Submitted: 29/03/2022 07:56 AM

Vietnam's textile and clothing industry is a leader in terms of export turnover, providing many job opportunities. Currently, cotton is the primary raw material for the industry, but more than 90% of input resources are imported. Therefore, how can the government proactively obtain raw materials to raise the added value of textile products?

Depends on many import sources

According to the Chairman of the Board of Directors and General Director of Dong Nai Garment Joint Stock Company Bui The Kich, enterprises (enterprises) produce goods by FOB method (buying and selling) up to 95%, so it is difficult for this enterprise. is finding the right ingredients. This is also a common difficulty that most Vietnamese garment enterprises face. At present, Dong Nai Garment Joint Stock Company only uses 45 to 50% of raw materials and 60 to 70% of domestic materials, the rest must be imported from abroad. Although, the country has produced many types of textile raw materials, but basically the textile enterprises have not met customer requirements in terms of quantity and quality of high-class goods to make export orders.

Like Dong Nai Garment Joint Stock Company, Nha Be Garment Corporation - a joint stock company must also import up to 50% of raw materials from abroad. The company only uses the sewing thread of Phong Phu, zipper of Nha Trang Garment Accessories Joint Stock Company or YKK Vietnam Ltd., and the rest must be imported. Not only Nha Be Garment, but many other garment enterprises also need to buy domestic raw materials because if they can buy domestic materials, they will save costs and time, especially to ensure the right delivery time for partners. In many cases, the company has to make very urgent orders, if buying raw materials abroad, businesses have to spend the cost of sending people to the place to negotiate the contract, not to mention when the goods return to Vietnam, the procedures must be followed. Import customs usually take a long time, goods do not keep up, affecting both orders.

Sharing this view, Chairman of the Board of Directors of Ho Guom Garment Joint Stock Company Ninh Thi Ty said that the proportion of FOB products accounted for 40% of the remaining enterprises processed for export. Fabric produced domestically is only accepted by foreign customers for lining-up by dyeing, finishing is not guaranteed, so the quality of fabric is very difficult to meet the requirements from the foreign side.

Not only garment enterprises, fiber enterprises also have to import most of raw materials. According to General Director of Phong Phu Pham Xuan Lap Corporation, this company has a production process from spinning, weaving, dyeing and sewing. Phong Phu has to import 95% of raw cotton for spinning to serve fabric production, meeting the Corporation's demand for making garments and selling fabrics to the market.

Development of cotton and synthetic fiber

According to a recent report of the Vietnam Textile and Apparel Association, cotton is the main raw material for the textile and apparel industry, the annual demand for using our cotton is more than 400 thousand tons and increasing, but this material is domestically only meet very small output from 1 to 2%, the rest still have to import. In 2011, the fiber industry used 330 thousand tons of cotton, of which domestic cotton could only meet 1.52%; 400 thousand tons of fiber in which domestic fiber production reaches 30%. Vinatex has determined that cotton plant development is a basic goal of self-sufficiency in a major raw material for textile industry.

According to Vinatex Head of Technical Department Pham Van Tuyen, cotton lives on heaven so its yield is not stable. In some cotton growing areas, the area and productivity of cotton did not increase significantly, there are many reasons but mainly due to low cotton productivity with low productivity, economic efficiency for farmers is not high; the scale of cotton production in Vietnam is still scattered and small among farmers, without large concentrated growing areas, so it is difficult to apply uniform scientific and technical advances to improve productivity and quality. The cotton development program to the year of 2015, oriented to 2020, approved by the Prime Minister, affirms that cotton will still be an important source of raw materials for the maintenance and development of spinning industry in particular and Vietnam's textile and garment industry. general. Therefore,

Vinatex Deputy General Director Pham Nguyen Hanh assessed that, after nearly two years of implementing the Prime Minister's Decision, the national cotton planting area increased gradually, the 2010-2011 cotton area reached 10,470 hectares, an increase of 12% compared to the previous crop. in the 2011-2012 cotton crop, the area will reach 11,260 hectares, an increase of 7.5% compared to the previous crop, and the output of processed cotton fiber will reach 4,864 tons, up from 170 tons in the previous crop. However, at present, the cotton growing area of ​​the whole country is only equal to 37% of the set target for 2015. The industry has focused on testing and developing mechanized farm cotton, actively irrigating but achieved results. still very limited. Up to now, there are only two sample farms, namely Phong Phu commune, Tuy Phong district (Binh Thuan), 54.8 ha and 20 ha model farm in Ninh Son district (Ninh Thuan) of Nha Ho Cotton Institute.

According to Deputy General Director Pham Nguyen Hanh, in 2011, textile industry had to spend 1.1 billion USD to import cotton and 6.6 billion USD to import all kinds of cloth (accounting for 70% of the import turnover of the whole industry). ), therefore, the development of raw materials for the industry is the goal that the textile industry aims to. In order to develop the cotton industry according to the set objectives, it is necessary to overcome the shortcomings of scattered, fragmented and small production practices, which have not yet become large-scale cotton production areas; Irrigation system is not suitable for irrigation of cotton plants; cotton price is not attractive yet; intensive investment to increase productivity and mechanization is limited, so it cannot compete with crops such as maize, cassava ...; low cotton productivity was only 1.2 quintals / ha and tended to decrease due to poor cultivated area. One of the difficulties in developing a cotton farm is a lack of land, in particular, it needs a large amount of capital, about VND 34 trillion to renovate land, invest in technology, equipment and mechanization, etc. Meanwhile, cotton industry units have not been able to access the priority capital sources for the Chapter. cotton growing program. Therefore, the Ministries of Industry and Trade and Finance should soon approve the financial mechanism for the cotton industry under the Decision No. 29 / QD-TTg of the Prime Minister to create favorable conditions for Vinatex and other cotton-producing enterprises. implementation basis. Not only that, the People's Committees of provinces included in this Decision should also consider and approve the cotton-planting area planning, the investment plan for the construction of irrigation systems. At the same time, ministries and branches shall study and promulgate a mechanism to change the purpose of using poor and exhausted forest land into irrigated cotton cultivation. cotton industry units have not been able to access the priority capital for the cotton development program. Therefore, the Ministries of Industry and Trade and Finance should soon approve the financial mechanism for the cotton industry under the Decision No. 29 / QD-TTg of the Prime Minister to create favorable conditions for Vinatex and other cotton-producing enterprises. implementation basis. Not only that, the People's Committees of provinces included in this Decision should also consider and approve the cotton-planting area planning, the investment plan for the construction of irrigation systems. At the same time, ministries and branches shall study and promulgate a mechanism to change the purpose of using poor and exhausted forest land into irrigated cotton cultivation. cotton industry units have not been able to access the priority capital for the cotton development program. Therefore, the Ministries of Industry and Trade and Finance should soon approve the financial mechanism for the cotton industry under the Decision No. 29 / QD-TTg of the Prime Minister to create favorable conditions for Vinatex and other cotton-producing enterprises. implementation basis. Not only that, the People's Committees of the provinces included in this Decision should also consider and approve the cotton-planting area planning, the investment plan for the construction of irrigation systems. At the same time, ministries and branches shall study and promulgate a mechanism to change the purpose of using poor and exhausted forest land into irrigated cotton cultivation. Finance should soon approve the financial mechanism for the cotton industry under the Decision No. 29 / QD-TTg of the Prime Minister to create conditions for Vinatex and cotton production and business enterprises to have basis for implementation. Not only that, the People's Committees of the provinces included in this Decision should also consider and approve the cotton-planting area planning, the investment plan for the construction of irrigation systems. At the same time, ministries and branches shall study and promulgate a mechanism to change the purpose of using poor and exhausted forest land into irrigated cotton cultivation. Finance should soon approve the financial mechanism for the cotton industry under the Decision No. 29 / QD-TTg of the Prime Minister to create conditions for Vinatex and cotton production and business enterprises to have basis for implementation. Not only that, the People's Committees of the provinces included in this Decision should also consider and approve the cotton-planting area planning, the investment plan for the construction of irrigation systems. At the same time, ministries and branches shall study and promulgate a mechanism to change the purpose of using poor and exhausted forest land into irrigated cotton cultivation.

In addition to developing cotton, Vinatex has also implemented projects to produce viscose fibers, mainly from the source of raw materials of eucalyptus wood pulp and acacia hybrid, which is currently widely grown in Vietnam. From there, approximately 30% of the demand for raw materials to produce viscose fabric can be proactively created to create fashionable fabrics.

Along with the development of raw material areas, Vinatex and Vietnam National Oil and Gas Group work together to build Dinh Vu fiber factory (Dinh Vu economic zone, Hai Phong) with a capacity of 500 tons / day, scheduled for May. 7-2012 going into commercial operation will supply the textile industry every year 175 thousand tons of synthetic fiber, meeting 40% of the fiber demand for the domestic textile industry, raising the initiative in fiber supply. domestic yarn to 70%. Vinatex has also developed four industrial parks (IZs), weaving and dyeing industrial complexes in Ninh Binh, Nam Dinh, Long An and Tra Vinh provinces to attract domestic and foreign enterprises to invest in raw production. accessories for textile industry; in the 2012-2015 period, to continue building industrial parks, weaving and dyeing industrial complexes in Tien Giang province,

Investment opportunities to develop material production for the textile industry have begun to attract businesses, Chairman of the Board of Directors and General Director of Dong Trieu Hoa Century Fiber Joint Stock Company said that enterprises have decided to invest in expanding to raise polyester filament yarn production capacity, one of the most durable and wrinkle-proof textile materials. Currently, the company provides 35 thousand tons of yarn every year; Last May, ITOCHU Group (Japan) implemented an investment project of a high quality spinning factory using high-class textile fabric in Bao Minh Industrial Park (Nam Dinh), expected to go into operation. operated mid 2013.

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