Filling The Supply Gap Is The Main Goal Of Industries That Support The Textile And Apparel Sector
Numerous analysts believe that even if local textile and apparel companies have been becoming more prevalent in the global manufacturing chain, their numbers still do not match their potential.
Supply self-sufficiency, lowering reliance on foreign markets
Since the supporting industries for textiles and clothing are still very weak and the supply of raw materials and accessories is heavily dependent on imports, the textile and apparel industry still faces many obstacles and challenges even though it helps achieve important goals in the economic development strategy. For instance, the textile and clothing sector today depends heavily on accessories like buttons, zippers, threads, and so on; even a single malfunction in one of these parts might result in items that are considered inferior and of low quality. Despite improvements, the textile and apparel supporting sectors still face several obstacles.
Representatives from Vietnamese textile enterprises highlight ongoing challenges in the supporting industries, particularly with raw materials and rising input costs due to inflation, leading to fewer orders. Many garment companies focus on contract manufacturing, with customers providing raw materials. Domestic textile products are often unsold, limiting investment in machinery and product quality improvement.
According to the Ministry of Industry and Trade, local enterprises import around 70% of raw materials, mostly from China. Weak domestic weaving and dyeing capabilities force the industry to export yarn and re-import it, leading to a reliance on large fabric imports for production.
Supporting industries for the textile sector need to be prioritized
From now until 2025, global economic instability is expected to persist, and the textile industry needs a new direction to reduce dependence on international markets, ensure self-sufficiency in raw material supply, and gradually shift focus to domestic market development.
Therefore, developing supporting industries for the textile sector must be prioritized, with the goal of attracting multinational corporations to invest in technology and capital to establish a supporting industry system for the textile sector.
A representative from the Department of Industry (Ministry of Industry and Trade) stated that to enter the global supply chain and secure orders, products must be cheaper than those from China. However, price competition remains a challenge for Vietnamese industries in general, and supporting industries in particular, due to issues with tax policies, fees, and interest rates.
In the Textile, Footwear Industry Development Strategy through 2030, with a vision to 2035, the Ministry of Industry and Trade has proposed solutions focusing on technological innovation, especially in weaving and finishing dyeing, to promote supporting industries for textiles and gradually address the supply gap.
To help the Vietnamese textile industry develop its supply chain and ensure self-sufficiency in raw materials, businesses hope the government will introduce policies to facilitate greater collaboration between FDI and domestic companies. This would promote business linkages, knowledge exchange, and production cooperation to "boost" the development of supporting industries for textiles. Additionally, FDI investment should be encouraged, but with the establishment of preferential principles and the enhancement of product standards, technical regulations, environmental protection, resource conservation, and energy efficiency that align with regional and global standards.
The Road Ahead
The Road Ahead
Vietnam’s apparel manufacturing landscape is one of both tradition and transformation. As the country continues to invest in its labor force, technology, and sustainability, it solidifies its position as a leader in the global apparel industry. While challenges remain, Vietnam’s ability to adapt, innovate, and maintain quality positions it as a key player in the future of fashion production. Brands looking for a balance between cost efficiency, quality, and responsible sourcing need look no further than Vietnam.
