Update: 10:19 | 11/10/2018
(BGO) - The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP), expected to come into force next year along with the signed free trade agreements (FTAs), has opened up opportunities for the textile and garment industry to accelerate. Many apparel businesses in Bac Giang province have actively made approach plans to increase profits.
More new orders
Nguyen Huu Phai, Chairman of the Board of Directors of the Bac Giang Garment Joint Stock Company (BGG), said that although the CPTTP is yet to take effect, it has created a new wind to boost the development of the textile and garment industry.
Duong Van Thai, Vice Chairman of the provincial People's Committee and Chairman of the provincial Business Association, visits production area of the Bac Giang Garment Joint Stock Company.
A series of bilateral FTAs signed between Vietnam and the United States, Japan, the Republic of Korea, Singapore and the EU have helped reduce import and export taxes, bringing more orders to the company. To meet the needs of partners, the company has invested in modern automatic production equipment as well as focused on training to improve the skills of workers.
In the past nine months, the company posted an export value of more than 180 million USD, up 10 percent over the same period last year. It created jobs with stable income for 15,000 workers, with an average monthly salary of 6.8 -7 million VND per person, 1 million VND more than before.
Since the beginning of the year, garment processing orders of the Ha Bac Export Garment Joint Stock Company have increased about 10 percent year-on-year. Its revenue reached 400 billion VND, up 10 percent over the same period in 2017, ensuring jobs for 3,000 employees, with an average monthly salary of 8.5 million VND per person, nearly 2 million VND more than before.
"According to the company’s calculations, with the current market situation and development trend of the world economy, the textile and garment industry will continue to grow in the next 5 years. Our company has set out specific plans to catch opportunities, continue to attract orders, and expand the consumption market", said Tran Anh Manh, General Director of the Ha Bac Export Garment Joint Stock Company.
At present, there are nearly 50 garment enterprises operating in the province with about 55,000 workers, mainly processing products for export to foreign partners. Representatives of enterprises said that recently, new orders have sharply increased. Most of the companies have expanded their workshops, installed more modern production lines, and arranged manpower to work for extra time to ensure the output.
Proactively grasping opportunities
Production line of the Ha Phong Export Garment Joint Stock Company.
In addition to opportunities provided by free trade agreements, many experts said that the world economy is experiencing fluctuations favorable for Vietnam's textile and garment industry. Many foreign companies have shifted to order processed products from Vietnam instead of some other Asian countries.
According to the provincial Department of Planning and Investment, since the beginning of the year, the province has received and approved three projects to build industrial garment factories with a total output of 4.2 million products a year.
The textile and garment industry is also facing big challenges when most materials depend on imports. Moreover, there is a possibility that foreign garment enterprises will "land" in Vietnam to seek exports to the US and countries that have signed comprehensive trade agreements with the US.
To catch the opportunities as well as overcome the challenges, Deputy Director of the Department of Planning and Investment Nguyen Cuong said that businesses should pay attention to intensive development, invest in modern machinery, and increase labor productivity and quality.
They need to expand markets in many countries and regions, avoiding their overdependence on a few markets, while attaching importance to product designing and labeling in order to build and develop prestigious fashion brands, thus creating greater economic value.