Vietnam : Textile and
garment industry undergoes restructuring
The Nam Dinh Textile & Garment
JSC has undergone ‘major surgery’. The number of workers has
been cut from 18,000 to 4,000. However, the remaining
workers’ output equals that of 18,000 workers in the past.
Vietnam MOIT is going to submit to the government a plan to
restructure industry in general in 2016-2020, which includes
the textile & garment industry.
The plan shows several targets such as repositioning
enterprises geographically and shutting down factories with
outdated technologies, but it does not include
There are three ways to improve productivity in the textile
& garment industry.
First, using few workers and
high-productivity machines. Second, shutting down
unprofitable enterprises and reducing the number of
enterprises consuming a lot of power. Third, adjusting the
product structure to choose enterprises with higher added
Truong Duy Hung, director of MOIT’s planning department, the
compiler of the plan, believes the weak point of textile
industry is the lack of input materials.
Analysts say that if Vietnamese enterprises make input
materials, their products would be able to replace Chinese
products and can compete with Chinese products in price.
In current conditions, however, it is easier and faster to
seek input materials from China than domestic sources. This
is because China organizes large-scale production and
always has large stocks, while Vietnam only makes products
Vietnam earned $6.84 billion from garment and textile
exports in the first quarter of this year, 11.2 percent more
than in the same period last year.