The garment and textiles industry posted a massive 5.1 billion USD in exports revenues for the first eight months of the year, representing a year-on-year surge of 30 percent.
The US remains to be Viet Nam’s largest market by importing almost 3 billion USD of products or a 20 percent increase over the same period last year. The figure represented a 60 percent share of Viet Nam’s gross garment exports.
The post-WTO surge of Viet Nam’s textiles and garments exportation to the US at 25 percent in the first half, however, is just slightly higher than the quota-imposition period prior to the country’s WTO membership which stood at 21 percent, said Le Quoc An, Chairman of the Viet Nam Textiles and Garments Association (VTGA).
“The recent level of exports by the textile and garment industry has not shown any signs of “unexpected highs” for the US side to use as a pretext for sueing Viet Nam on dumping charges,” he said.
The VTGA chief unveiled a plan in association with the Ministry of Industry and Trade to further lobby US authorities, especially the Department of Commerce, to lift more barriers that are blocking Viet Nam’s textile and garment exports.
An urged domestic enterprises to strictly control their exports to the world’s largest market by focusing on high priced contracts while turning away small and low value deals.
“This should allow the textile and garment industry to maintain its high export growth rates in the rest of the year,” emphasised the garment expert.
He also urged firms to expand into other markets such as the European Union and Japan.
Source: VNA
Showing posts with label Textile. Show all posts
Showing posts with label Textile. Show all posts
Wednesday, August 29, 2007
Friday, August 03, 2007
Vinatex to sell $62 mln bond
The investment arm of Vietnam National Textile and Garment Group (Vinatex) will sell bonds worth 1 trillion dong ($62 million) this year to finance an expansion, a state-run newspaper reported on Friday.
Vietnam's largest textile firm would issue the bonds in two tranches and the proceeds should help it and subsidiaries boost production more cheaply than bank loans, Vinatex chairman Le Quoc An was quoted by the Saigon Times Daily as saying.
France's BNP Paribas would underwrite the bonds and the Empower Securities Co., 22 percent owned by Vinatex, would be the adviser on the issue.
An gave no further details, but financial sources close to the deal said the first tranche would be sold in the next few weeks.
Textile and garment products are Vietnam's second-largest foreign exchange earner after crude oil, bringin in $4.24 billion in the first seven months of this year, a rise of 28.6 percent from a year earlier, government figures showed.
Vinatex, which accounted for 22 percent of Vietnam's textile and garment exports in 2006, will undergo privatisation next year following a government approval granted in June.
The group has been partially privatising its subsidiaries, planning the IPOs of two units, Phong Phu Fabric Textile Factory and Phong Phu Towel Textile Factory, late this month on the Ho Chi Minh Stock Exchange.
Source: Reuters
Vietnam's largest textile firm would issue the bonds in two tranches and the proceeds should help it and subsidiaries boost production more cheaply than bank loans, Vinatex chairman Le Quoc An was quoted by the Saigon Times Daily as saying.
France's BNP Paribas would underwrite the bonds and the Empower Securities Co., 22 percent owned by Vinatex, would be the adviser on the issue.
An gave no further details, but financial sources close to the deal said the first tranche would be sold in the next few weeks.
Textile and garment products are Vietnam's second-largest foreign exchange earner after crude oil, bringin in $4.24 billion in the first seven months of this year, a rise of 28.6 percent from a year earlier, government figures showed.
Vinatex, which accounted for 22 percent of Vietnam's textile and garment exports in 2006, will undergo privatisation next year following a government approval granted in June.
The group has been partially privatising its subsidiaries, planning the IPOs of two units, Phong Phu Fabric Textile Factory and Phong Phu Towel Textile Factory, late this month on the Ho Chi Minh Stock Exchange.
Source: Reuters
Thursday, July 26, 2007
Vietnam fears falling exports will push target beyond reach
A slowdown in exports of some key items means the year’s export target of US$48 billion could be missed, a routine trade ministry meeting Tuesday heard. Pham The Dung, head of the Ministry of Trade’s Export-Import Department, said as a result the export sector faced a heavy burden in the second half.
As the country’s number one export turnover earner, crude oil plunged by 5 percent to $3.8 billion.
Oil industry insiders attributed the slip to declining global prices and lower than expected output by certain overseas operations.
Rice exports fell by 5 percent to $732 million. Huynh Minh Hue, deputy general secretary of the Vietnam Food Association, said a shortfall in cargo services and a 40 percent hike in transport costs had pushed exports down.
As a result, shipments to some key markets like Russia, Cuba, and South Africa had plunged by 75 percent, 67 percent, and 58 percent respectively.
Footwear exports fetched $1.9 billion, a year-on-year rise of 11 percent against a targeted rise of 21 percent.
This was mainly due to anti-dumping duties slapped by the EU which buys 80 percent of Vietnamese footwear exports.
Exporters failed to address the problem by finding alternate markets.
However, despite the problems, the country‘s exports jumped by 20 percent in the first half to $22.5 billion.
Deputy Minister of Trade Nguyen Tinh Bien warned that nothing less than a massive effort would do to reach the export target.
The coffee, apparel, and seafood industries were on track to achieve their targets, especially apparel, which could reach its $7.3 - 7.5 billion goal.
A push was required to ensure fisheries, another important export item, achieved its export target.
The government had agreed to provide VND50 billion to set up facilities to test fisheries products to ensure they were free of banned chemical substances.
Van Thanh Huy, chairman of the Vietnam Coffee Association, said coffee exports had already achieved 92 percent of the whole year’s target with revenues of $1.5 billion so far.
But he was worried that the low coffee quality could hurt the goal.
A Ho Chi Minh City-based coffee trader admitted that Vietnamese coffee had 1 percent impurities compared to 0.5 percent elsewhere.
Exports are expected to maintain robust growth, helped by Vietnam's membership in the WTO. The country’s ambitious export goal is to reach a whopping $100 billion in export value by 2010, according to the Ministry of Trade.
The nation’s four giant exporting markets now are the EU, the US, Japan and China.
Trade officials said exports to the US were forecast to rise 35 percent from last year to nearly $11 billion in total this year while revenues from goods sold to Europe would jump 22 percent to $8.3 billion by the year’s end.
Source: Reuters
As the country’s number one export turnover earner, crude oil plunged by 5 percent to $3.8 billion.
Oil industry insiders attributed the slip to declining global prices and lower than expected output by certain overseas operations.
Rice exports fell by 5 percent to $732 million. Huynh Minh Hue, deputy general secretary of the Vietnam Food Association, said a shortfall in cargo services and a 40 percent hike in transport costs had pushed exports down.
As a result, shipments to some key markets like Russia, Cuba, and South Africa had plunged by 75 percent, 67 percent, and 58 percent respectively.
Footwear exports fetched $1.9 billion, a year-on-year rise of 11 percent against a targeted rise of 21 percent.
This was mainly due to anti-dumping duties slapped by the EU which buys 80 percent of Vietnamese footwear exports.
Exporters failed to address the problem by finding alternate markets.
However, despite the problems, the country‘s exports jumped by 20 percent in the first half to $22.5 billion.
Deputy Minister of Trade Nguyen Tinh Bien warned that nothing less than a massive effort would do to reach the export target.
The coffee, apparel, and seafood industries were on track to achieve their targets, especially apparel, which could reach its $7.3 - 7.5 billion goal.
A push was required to ensure fisheries, another important export item, achieved its export target.
The government had agreed to provide VND50 billion to set up facilities to test fisheries products to ensure they were free of banned chemical substances.
Van Thanh Huy, chairman of the Vietnam Coffee Association, said coffee exports had already achieved 92 percent of the whole year’s target with revenues of $1.5 billion so far.
But he was worried that the low coffee quality could hurt the goal.
A Ho Chi Minh City-based coffee trader admitted that Vietnamese coffee had 1 percent impurities compared to 0.5 percent elsewhere.
Exports are expected to maintain robust growth, helped by Vietnam's membership in the WTO. The country’s ambitious export goal is to reach a whopping $100 billion in export value by 2010, according to the Ministry of Trade.
The nation’s four giant exporting markets now are the EU, the US, Japan and China.
Trade officials said exports to the US were forecast to rise 35 percent from last year to nearly $11 billion in total this year while revenues from goods sold to Europe would jump 22 percent to $8.3 billion by the year’s end.
Source: Reuters
Friday, July 20, 2007
Vinatex to help set up bank
The Vietnam National Textile and Garment group (Vinatex), the country's top textile and garment firm, plans to help form a commercial bank to serve major domestic industrial firms, state media said on Thursday.
Hanoi-based Vinatex would take a 14 percent stake in the Industry Bank, slated to have a registered capital of 1 trillion dong ($62 million), the Vietnam Economic Times newspaper said.
Hanoi Alcohol Beer and Beverage Corp. would contribute 12 percent, followed by Vietnam Steel Corp.'s 10 percent and 5 percent from partly private Vietnam International Bank, it said.
The project also envisaged boosting the bank's registered capital -- which determines the size of its loans and deposits -- to 3 trillion dong by 2009.
Seven state-run banks and 34 partly private banks now operate in Vietnam. There are also branches of 35 foreign banks and six joint venture banks.
Several Vietnamese firms, including the largest telecoms company, VNPT, state oil and gas group Petrovietnam, Sacom (SAM) and FPT have sought central bank permission to open commercial banks.
Kieu Huu Dung, head of the central bank's Department for Banks and Non-bank Credit Institutions, said the bank expected to start reviewing about 20 applications from major companies and private firms on forming banks on Friday.
"The number of new banks to be licensed by the year end may not be many," he told Wednesday's Dau Tu (Investment) newspaper, citing a long assessment process.
ANZ, Standard Chartered Plc. and HSBC Holdings Plc. had also sought to open 100 percent owned subsidiaries in Vietnam, Dau Tu said.
Source: Reuters
Hanoi-based Vinatex would take a 14 percent stake in the Industry Bank, slated to have a registered capital of 1 trillion dong ($62 million), the Vietnam Economic Times newspaper said.
Hanoi Alcohol Beer and Beverage Corp. would contribute 12 percent, followed by Vietnam Steel Corp.'s 10 percent and 5 percent from partly private Vietnam International Bank, it said.
The project also envisaged boosting the bank's registered capital -- which determines the size of its loans and deposits -- to 3 trillion dong by 2009.
Seven state-run banks and 34 partly private banks now operate in Vietnam. There are also branches of 35 foreign banks and six joint venture banks.
Several Vietnamese firms, including the largest telecoms company, VNPT, state oil and gas group Petrovietnam, Sacom (SAM) and FPT have sought central bank permission to open commercial banks.
Kieu Huu Dung, head of the central bank's Department for Banks and Non-bank Credit Institutions, said the bank expected to start reviewing about 20 applications from major companies and private firms on forming banks on Friday.
"The number of new banks to be licensed by the year end may not be many," he told Wednesday's Dau Tu (Investment) newspaper, citing a long assessment process.
ANZ, Standard Chartered Plc. and HSBC Holdings Plc. had also sought to open 100 percent owned subsidiaries in Vietnam, Dau Tu said.
Source: Reuters
Wednesday, July 11, 2007
Garment, textile sector short on growth
The garment and textile sector has not grown as expected despite the fact that limits on exports were removed when Vietnam joined the World Trade Organisation, according to industry experts.
They said Vietnamese businesses aren’t taking advantage of opportunities to make Free on Board (FOB) goods-items that Vietnamese companies are no longer responsible for after they are loaded onto transport ships or planes.
These contracts can be more lucrative for export businesses because they do not have to insure the cargo or pay import duties when the items reach their destination.
Currently, only 20 to 30% of textile and garment exports fall into this category.
To address this issue, the sector plans to encourage businesses to shift their focus to FOB products to increase the industry’s overall production between 5 and 10% this year.
Pham Xuan Hong, general director of Sai Gon Garment and Textile said: "Only by producing FOB items can businesses survive and develop."
So far this year, the sector has recorded revenues of US$3.4bil in the first half of the year and an annual growth rate of between 20 and 30%.
While positive, the industry’s target of earning $12bil in exports by 2010 will be difficult to reach if reforms are not made and soon. Another issue that was up to 80% of raw materials were imported.
The sector plans to try and reverse this trend by building three industrial zones specifically designed to knit and dye fabrics.
"We will invest in three centres to provide materials for garment and textile companies in Hanoi, Da Nang and HCM City and move the production to surrounding areas of those centres to address the high demand for materials," said Le Quoc An, chairman of the Viet Nam Garment and Textile Association.
Businesses will likely also use Vietnam’s burgeoning fashion industry to diversify their products and create special trade marks.
To do this, they’ll need the support of skilled workers, yet another problem plaguing the sector.
Vietnamese companies typically produce items for foreign companies that outsource to Vietnam, but local businesses simply do not have the human resources or capacity to meet their quotas.
"We are not worried about lacking contracts, instead we’re having trouble employing enough workers. Investing in new technology is now even easier than finding skilled labour," said Hong.
The average salary for a tailor can be as much as VND1.5mil per month, but even that hasn’t made recruitment any easier.
People who have been hired from outside HCM City can be tough to hold onto, as well, especially after the Lunar New Year or Tet when they return to their home villages.
The Sai Gon Garment and Textile Joint-Stock Company 2 has seen its orders from American companies double recently, yet hasn’t be able to meet the deadlines because 25 of its 40 production lines are unmanned. The situation is even more serious in Quang Ngai Province.
Of its seven garment companies, four have closed because they don’t have enough employees. Not even lowering the requirements for workers has helped.
Thuyen Nguyen Co Ltd needs more than 1,000 tailors, according to a provincial labour survey.
Source: VNE
They said Vietnamese businesses aren’t taking advantage of opportunities to make Free on Board (FOB) goods-items that Vietnamese companies are no longer responsible for after they are loaded onto transport ships or planes.
These contracts can be more lucrative for export businesses because they do not have to insure the cargo or pay import duties when the items reach their destination.
Currently, only 20 to 30% of textile and garment exports fall into this category.
To address this issue, the sector plans to encourage businesses to shift their focus to FOB products to increase the industry’s overall production between 5 and 10% this year.
Pham Xuan Hong, general director of Sai Gon Garment and Textile said: "Only by producing FOB items can businesses survive and develop."
So far this year, the sector has recorded revenues of US$3.4bil in the first half of the year and an annual growth rate of between 20 and 30%.
While positive, the industry’s target of earning $12bil in exports by 2010 will be difficult to reach if reforms are not made and soon. Another issue that was up to 80% of raw materials were imported.
The sector plans to try and reverse this trend by building three industrial zones specifically designed to knit and dye fabrics.
"We will invest in three centres to provide materials for garment and textile companies in Hanoi, Da Nang and HCM City and move the production to surrounding areas of those centres to address the high demand for materials," said Le Quoc An, chairman of the Viet Nam Garment and Textile Association.
Businesses will likely also use Vietnam’s burgeoning fashion industry to diversify their products and create special trade marks.
To do this, they’ll need the support of skilled workers, yet another problem plaguing the sector.
Vietnamese companies typically produce items for foreign companies that outsource to Vietnam, but local businesses simply do not have the human resources or capacity to meet their quotas.
"We are not worried about lacking contracts, instead we’re having trouble employing enough workers. Investing in new technology is now even easier than finding skilled labour," said Hong.
The average salary for a tailor can be as much as VND1.5mil per month, but even that hasn’t made recruitment any easier.
People who have been hired from outside HCM City can be tough to hold onto, as well, especially after the Lunar New Year or Tet when they return to their home villages.
The Sai Gon Garment and Textile Joint-Stock Company 2 has seen its orders from American companies double recently, yet hasn’t be able to meet the deadlines because 25 of its 40 production lines are unmanned. The situation is even more serious in Quang Ngai Province.
Of its seven garment companies, four have closed because they don’t have enough employees. Not even lowering the requirements for workers has helped.
Thuyen Nguyen Co Ltd needs more than 1,000 tailors, according to a provincial labour survey.
Source: VNE
Friday, July 06, 2007
Garment exports reach $3.4bil in first half
Textile and garment exports reached US$680mil in June, lifting the industry’s total earnings in the first six months of the year to $3.4bil, according to the Viet Nam Textile and Apparel Association (Vitas).
Though the six-month figure was up 25.9% over the same period last year, it met only 47% of the industry’s annual export target of $7bil, Vitas said.
Vitas attributed the slightly disappointing result to US monitoring of garment imports from Vietnam. The US Department of Commerce (DoC) began monitoring imports of textile and apparel products after Vietnam joined the WTO in January and quotas were lifted.
The DOC is expected to announced the results of its first biannual review in August.
Meanwhile, Vitas explained, many US companies have postponed new contracts with Vietnamese textile and garment exporters for fear of dumping actions by the DOC or US garment makers.
Vitas’s statistics showed that textile and garment exports to the US market in June rose only 30% year-on-year, while the figure was often much higher in previous years.
To deal with the reduction in orders from US importers, Vitas chairman Le Quoc An said Vitas was taking several courses of action to prevent further cancellations of orders from US businesses.
"We have appealed to the US Government to stop applying the monitoring system on Vietnamese garments and have requested international organisations to lobby on our behalf. The association has also met with US businesses to persuade them to continue importing our products."
An said the association has also requested Vietnamese businesses to make their accounts clear and transparent in line with international regulations, and to limit low-price exports to the US market.
Vitas also recommended its members expand their exports to other markets and make direct sales to overseas markets instead of acting as a sub-contractor as currently.
The Association of Garment and Textile Embroidery and Knitting (Agtex) recently asked the Government to set up a national fashion centre designed to support the nation’s garment industry in designing products and building trademarks, said Agtex vice chairman Diep Thanh Kiet.
Thanks to efforts in building trademarks and design, domestic textile and garment producers including Viet Tien have made significant successes in directly exporting their products to overseas markets.
Following successes in Australia and New Zealand, Viet Tien is working with partners to distribute products bearing its Vee Sendy mark to the US, Malaysia, Singapore and Canada.
Some domestic garment makers expected to increase their shipments to the EU market thanks to a trade promotion programme planned by the Holland Centre on Import Promotion from Developing Countries, according to the Trade Promotion Agency under the Ministry of Trade.
According to the agency, the programme would give domestic textile producers opportunities to receive consultation and training from foreign experts as well as have timely access to EU market information.
Participants might also receive foreign support to improve their products, management, marketing and market penetration.
To qualify for the programme, domestic textile firms would be required not to join with foreign partners from developed countries and have at least 51% of capital owned by Vietnamese. The rules were designed to ensure benefits of the programme don’t flow to foreign-controlled joint ventures.
Quality, price and production capacity would also have to be in line with EU market demands and firms selected for the programme would be required to comply with EU standards.
Source: VNE
Though the six-month figure was up 25.9% over the same period last year, it met only 47% of the industry’s annual export target of $7bil, Vitas said.
Vitas attributed the slightly disappointing result to US monitoring of garment imports from Vietnam. The US Department of Commerce (DoC) began monitoring imports of textile and apparel products after Vietnam joined the WTO in January and quotas were lifted.
The DOC is expected to announced the results of its first biannual review in August.
Meanwhile, Vitas explained, many US companies have postponed new contracts with Vietnamese textile and garment exporters for fear of dumping actions by the DOC or US garment makers.
Vitas’s statistics showed that textile and garment exports to the US market in June rose only 30% year-on-year, while the figure was often much higher in previous years.
To deal with the reduction in orders from US importers, Vitas chairman Le Quoc An said Vitas was taking several courses of action to prevent further cancellations of orders from US businesses.
"We have appealed to the US Government to stop applying the monitoring system on Vietnamese garments and have requested international organisations to lobby on our behalf. The association has also met with US businesses to persuade them to continue importing our products."
An said the association has also requested Vietnamese businesses to make their accounts clear and transparent in line with international regulations, and to limit low-price exports to the US market.
Vitas also recommended its members expand their exports to other markets and make direct sales to overseas markets instead of acting as a sub-contractor as currently.
The Association of Garment and Textile Embroidery and Knitting (Agtex) recently asked the Government to set up a national fashion centre designed to support the nation’s garment industry in designing products and building trademarks, said Agtex vice chairman Diep Thanh Kiet.
Thanks to efforts in building trademarks and design, domestic textile and garment producers including Viet Tien have made significant successes in directly exporting their products to overseas markets.
Following successes in Australia and New Zealand, Viet Tien is working with partners to distribute products bearing its Vee Sendy mark to the US, Malaysia, Singapore and Canada.
Some domestic garment makers expected to increase their shipments to the EU market thanks to a trade promotion programme planned by the Holland Centre on Import Promotion from Developing Countries, according to the Trade Promotion Agency under the Ministry of Trade.
According to the agency, the programme would give domestic textile producers opportunities to receive consultation and training from foreign experts as well as have timely access to EU market information.
Participants might also receive foreign support to improve their products, management, marketing and market penetration.
To qualify for the programme, domestic textile firms would be required not to join with foreign partners from developed countries and have at least 51% of capital owned by Vietnamese. The rules were designed to ensure benefits of the programme don’t flow to foreign-controlled joint ventures.
Quality, price and production capacity would also have to be in line with EU market demands and firms selected for the programme would be required to comply with EU standards.
Source: VNE
Sunday, July 01, 2007
FPT to ease IT troubles for textile company
FPT Information System (FPT-IS) has signed a contract with the Thanh Cong Textile and Garment Company to provide an overall IT solution for its securities business.
It will supply hardware and software for stock management, on-line transactions and the company's website.
The package will allow Thanh Cong Securities' customers to place their order and confirm its execution through the internet.
The system comes with a guarantee of high security and the ability to switch a stand-by system within one minute in case of a crash.
Thanh Cong, which has been in the textile and garment industry for more than 30 years, recently expanded into real estate, and now the securities market.
Source: VNA
It will supply hardware and software for stock management, on-line transactions and the company's website.
The package will allow Thanh Cong Securities' customers to place their order and confirm its execution through the internet.
The system comes with a guarantee of high security and the ability to switch a stand-by system within one minute in case of a crash.
Thanh Cong, which has been in the textile and garment industry for more than 30 years, recently expanded into real estate, and now the securities market.
Source: VNA
Thursday, June 21, 2007
Vietnam to privatise top garment maker Vinatex
The Vietnam government has agreed to the privatisation of Vinatex, its largest textile and garment group, which accounted for 22% of exports of such products last year.
Deputy Prime Minister Nguyen Sinh Hung said in a directive on Thursday the group would hire a consultant to conduct its privatisation process.
Hung also approved a plan to issue convertible bonds.
The directive did not give details of Vinatex's bond issue, but company chairman Le Quoc An has said the group needs to raise at least 10 trillion dong ($620 million) to expand.
An said the group planned to complete its privatisation process next year.
The state-owned firm said it aimed to raise textile and garment exports, mainly to the European Union and the United States, to $1.55 billion in 2007 from $1.3 billion last year.
Textile and garment products are Vietnam's second-largest export category after crude oil, with $2.68 billion in revenues reported during the first five months of this year.
Source: Reuters
Deputy Prime Minister Nguyen Sinh Hung said in a directive on Thursday the group would hire a consultant to conduct its privatisation process.
Hung also approved a plan to issue convertible bonds.
The directive did not give details of Vinatex's bond issue, but company chairman Le Quoc An has said the group needs to raise at least 10 trillion dong ($620 million) to expand.
An said the group planned to complete its privatisation process next year.
The state-owned firm said it aimed to raise textile and garment exports, mainly to the European Union and the United States, to $1.55 billion in 2007 from $1.3 billion last year.
Textile and garment products are Vietnam's second-largest export category after crude oil, with $2.68 billion in revenues reported during the first five months of this year.
Source: Reuters
Wednesday, May 23, 2007
Vietnam sets ambitious goal for textiles and garments
The Vietnam Textile and Apparel Association (Vitas) yesterday announced the strategy on the textile and garment industry, which targets $10-12bil worth of apparel product exports by 2010.
According to Vitas, there are 2,000 operational textile and garment enterprises, 0.5% of which are State owned, 25%, foreign invested, and the remaining, private owned or joint stock companies.
Vietnamese companies can make 10,000 tonnes of fibre a year, meeting 5% of the demand, and 50,000 tonnes of general fibre (30% of demand).
In terms of export ability, Mr Le Quoc An, Chairman of Vitas, said that exports had been increasing by 20% per annum in recent years. In 2006, total export turnover reached $5,834bil, 15% of total export turnover, representing a 20.5% growth rate compared to 2005. The US remains the biggest export market for Vietnam, consuming 55% of exports, followed by the EU with $1,243bil in turnover (20%), and Japan ($628mil and 11%). Vitas’ report showed that the domestic market just consumes 7% of the total retail turnover, estimated at $1.8bil.
Up to now, Vietnam’s textile and garment industry has been relying heavily on imports, as 95% of the demand for cotton fibre and 70% of the demand for general fibre must be fed by imports.
Mr An said that another big problem of Vietnam’s textile and garment industry is that there was no close process of industrial production, from upstream production (input materials) to designing, making finished products on industrial scale, and distribution and building trademarks. Most export products have been sold to big foreign traders, but the traders do not share risks with Vietnamese enterprises in legal disputes.
Mr An said that Vitas had set an ambitious goal for the textile and garment industry by 2010, under which the total turnover would reach $15bil, and the export turnover, $10-12bil. In order to reach that end, the industry needs to raise the locally made content in products to 50%, and increase the added value in products by 50%.
Mr An has announced that eight key programmes aiming to develop the textile and garment industry will be launched from now to 2010. These include ones focusing on raising the input material production capacity and setting up fashion centres nationwide.
Source: VNE
According to Vitas, there are 2,000 operational textile and garment enterprises, 0.5% of which are State owned, 25%, foreign invested, and the remaining, private owned or joint stock companies.
Vietnamese companies can make 10,000 tonnes of fibre a year, meeting 5% of the demand, and 50,000 tonnes of general fibre (30% of demand).
In terms of export ability, Mr Le Quoc An, Chairman of Vitas, said that exports had been increasing by 20% per annum in recent years. In 2006, total export turnover reached $5,834bil, 15% of total export turnover, representing a 20.5% growth rate compared to 2005. The US remains the biggest export market for Vietnam, consuming 55% of exports, followed by the EU with $1,243bil in turnover (20%), and Japan ($628mil and 11%). Vitas’ report showed that the domestic market just consumes 7% of the total retail turnover, estimated at $1.8bil.
Up to now, Vietnam’s textile and garment industry has been relying heavily on imports, as 95% of the demand for cotton fibre and 70% of the demand for general fibre must be fed by imports.
Mr An said that another big problem of Vietnam’s textile and garment industry is that there was no close process of industrial production, from upstream production (input materials) to designing, making finished products on industrial scale, and distribution and building trademarks. Most export products have been sold to big foreign traders, but the traders do not share risks with Vietnamese enterprises in legal disputes.
Mr An said that Vitas had set an ambitious goal for the textile and garment industry by 2010, under which the total turnover would reach $15bil, and the export turnover, $10-12bil. In order to reach that end, the industry needs to raise the locally made content in products to 50%, and increase the added value in products by 50%.
Mr An has announced that eight key programmes aiming to develop the textile and garment industry will be launched from now to 2010. These include ones focusing on raising the input material production capacity and setting up fashion centres nationwide.
Source: VNE
Friday, May 18, 2007
Viet Fashion prepares IPO
In related development, Viet Fashion Company – a garment producer owning the Ninomaxx brand casual wear brand is set to go public this August, mobilizing funds for business expansion in and across Vietnam’s border.
It will scale up its chartered capital to VND80 billion from he current VND16 billion by its owned equities before it goes public.
The fashion company plans to sell a 20% stake to outsiders [after increasing capital] via an auction in August.
It now runs 50 privately owned shops and 30 agents nationwide and two shops in the US and set this year turnover of VND150 billion.
Last year the firm earned VND100 billion in sales and over VND2 billion in pre-tax profit.
Source: Thanh Nien
It will scale up its chartered capital to VND80 billion from he current VND16 billion by its owned equities before it goes public.
The fashion company plans to sell a 20% stake to outsiders [after increasing capital] via an auction in August.
It now runs 50 privately owned shops and 30 agents nationwide and two shops in the US and set this year turnover of VND150 billion.
Last year the firm earned VND100 billion in sales and over VND2 billion in pre-tax profit.
Source: Thanh Nien
Thursday, April 19, 2007
Target of $48.7bil for export turnover unrealistic?
The Ministry of Trade (MoT) has warned that the target of $48.7bil in export turnover may be unreachable due to the lack of products for exports.
According to MoT, by the end of the first quarter of 2007, Vietnam had exported 710,000 tonnes, earning $230mil, a decrease of 43.3% in quantity and 33% in turnover compared to the same period last year. The figures reveal that only 15.7% of the targeted volume and 17% of the targeted turnover have been fulfilled.
Rice exporters said that the low rice stocks since 2006 and the inflexible mechanism on rice pricing set up by the Vietnam Food Association (Vietfood) have caused big difficulties for them. Vietfood has set up regulating price levels, strongly recommending that its members do not to sign contracts at prices lower than the regulating levels.
MOT has forecast that the rice price in the world’s market will be firm by the end of the second quarter of 2007 since the demand for rice imports is increasing from many countries. Vietnamese enterprises plan to deliver 1.4mil tonnes in the second quarter, a low volume.
The taskforce on rice export regulation has agreed to raise exports by 200,000 tonnes, and speed up the export pace in April and the first half of May in order to keep the domestic paddy price at an acceptably high level.
“This would be an opportunity for enterprises to rehabilitate exports,” said Pham The Dung, Head of the Import – Export Department under the Ministry of Trade.
With the total coffee exports of 482,000 tonnes and export turnover of $697mil in the first three months of the year, coffee exports saw an increase of 133% over the same period last year, fulfilling 68% of the yearly plan.
This was the only instance when Vietnam saw such a record growth rate in the first three months. But MoT has warned that exports in the coming quarters may decrease after the overly high exports in the first quarter.
Van Thanh Huy, Chairman of the Vietnam Coffee and Cocoa Association (Vicofa), said that Vietnam’s coffee would still go for a good price as the world’s demand is increasingly high. However, Mr Huy also said that the quality of exported coffee would remain a problem.
The same warning has also been given to the seafood industry. Export prices and markets proved to be very satisfactory for exporters in the first three months ($679 million, up by 11.9% over last year). However, if Vietnamese enterprises cannot improve the quality of seafood exports, the targeted $3.8bil turnover cannot be reached.
MoT has decided that apparel exports will gain the turnover of $2bil higher than last year’s level at $5.8bil. If not, the master export programme for 2007 will not be fulfilled.
However, apparel exporters are facing big difficulties exporting to the US as the country is kicking off the Vietnamese apparel import monitory programme.
Enterprises said that their clients were now tending not to place orders for the last months of the year for fear of anti-dumping activities. A member of the HCM City Textile, Garment, and Embroidery Association (Agtek) said that the door to the US market, the main export market for Vietnam, had been considerably narrowed.
Source: VNE
According to MoT, by the end of the first quarter of 2007, Vietnam had exported 710,000 tonnes, earning $230mil, a decrease of 43.3% in quantity and 33% in turnover compared to the same period last year. The figures reveal that only 15.7% of the targeted volume and 17% of the targeted turnover have been fulfilled.
Rice exporters said that the low rice stocks since 2006 and the inflexible mechanism on rice pricing set up by the Vietnam Food Association (Vietfood) have caused big difficulties for them. Vietfood has set up regulating price levels, strongly recommending that its members do not to sign contracts at prices lower than the regulating levels.
MOT has forecast that the rice price in the world’s market will be firm by the end of the second quarter of 2007 since the demand for rice imports is increasing from many countries. Vietnamese enterprises plan to deliver 1.4mil tonnes in the second quarter, a low volume.
The taskforce on rice export regulation has agreed to raise exports by 200,000 tonnes, and speed up the export pace in April and the first half of May in order to keep the domestic paddy price at an acceptably high level.
“This would be an opportunity for enterprises to rehabilitate exports,” said Pham The Dung, Head of the Import – Export Department under the Ministry of Trade.
With the total coffee exports of 482,000 tonnes and export turnover of $697mil in the first three months of the year, coffee exports saw an increase of 133% over the same period last year, fulfilling 68% of the yearly plan.
This was the only instance when Vietnam saw such a record growth rate in the first three months. But MoT has warned that exports in the coming quarters may decrease after the overly high exports in the first quarter.
Van Thanh Huy, Chairman of the Vietnam Coffee and Cocoa Association (Vicofa), said that Vietnam’s coffee would still go for a good price as the world’s demand is increasingly high. However, Mr Huy also said that the quality of exported coffee would remain a problem.
The same warning has also been given to the seafood industry. Export prices and markets proved to be very satisfactory for exporters in the first three months ($679 million, up by 11.9% over last year). However, if Vietnamese enterprises cannot improve the quality of seafood exports, the targeted $3.8bil turnover cannot be reached.
MoT has decided that apparel exports will gain the turnover of $2bil higher than last year’s level at $5.8bil. If not, the master export programme for 2007 will not be fulfilled.
However, apparel exporters are facing big difficulties exporting to the US as the country is kicking off the Vietnamese apparel import monitory programme.
Enterprises said that their clients were now tending not to place orders for the last months of the year for fear of anti-dumping activities. A member of the HCM City Textile, Garment, and Embroidery Association (Agtek) said that the door to the US market, the main export market for Vietnam, had been considerably narrowed.
Source: VNE
Thursday, February 22, 2007
Ministry of Industry publishes planned investments
Food processing and consumer goods companies plan to invest about VND6.91 trillion (431.9mio US$) to implement new projects this year, according to the Ministry of Industry.
Under the planned investments, there are large-scale projects such as the second phase of the Bai Bang Paper Company; construction of two breweries, each able to make 100 million litres of beer a year; and capacity expansion by the Viet Nam Garment and Textile Corporation.
The Ministry of Industry has suggested that companies accelerate development efforts and take the initiative to look for new capital resources, as well as reduce construction investment risks. Investors also need to focus on the new projects aimed at modernising the industry, say officials.
In the past, investments have not ended in positive results due to difficulties with land clearance and insufficient capital resources, according to the ministry.
The country’s industrial output in January was estimated at VND46.15 trillion (2.88 billion US$), up 26 per cent over the same period last year.
Source: VNS
Under the planned investments, there are large-scale projects such as the second phase of the Bai Bang Paper Company; construction of two breweries, each able to make 100 million litres of beer a year; and capacity expansion by the Viet Nam Garment and Textile Corporation.
The Ministry of Industry has suggested that companies accelerate development efforts and take the initiative to look for new capital resources, as well as reduce construction investment risks. Investors also need to focus on the new projects aimed at modernising the industry, say officials.
In the past, investments have not ended in positive results due to difficulties with land clearance and insufficient capital resources, according to the ministry.
The country’s industrial output in January was estimated at VND46.15 trillion (2.88 billion US$), up 26 per cent over the same period last year.
Source: VNS
Friday, December 22, 2006
Trade deficit up by 8%
Vietnam's exports are estimated to have risen 22.1% to 39.6bio US$ this year from 2005, but the annual trade deficit would widen 8% to 4.81bio US$, according to the Trade Ministry
While the export earnings were 4.9%t above the 2006 target, imports would still rise 20.4% from last year to 44.4bio US$.
Exports are forecast at 46.8bio US$ in 2007 as Vietnam benefits from its full World Trade Organisation membership, the Trade Ministry said.
Crude oil exports -- Vietnam's largest foreign exchange earner -- are estimated at 8.3bio US$ this year, followed by textiles at 5.8bio US$, 3.6bio US$ from footwear and 3.4bio US$ from seafood exports, the Trade Ministry said.
The highest growth in earnings this year was rubber, which would bring in 1.27 billionbio US$, or 58.3% more than last year.
Coffee exports would rise 49% on 2005 to 1.1bio US$. Vietnam is the world's biggest exporter of robusta coffee.
The government's statistics office is expected to release full trade figures later this month.
Source: Reuters
While the export earnings were 4.9%t above the 2006 target, imports would still rise 20.4% from last year to 44.4bio US$.
Exports are forecast at 46.8bio US$ in 2007 as Vietnam benefits from its full World Trade Organisation membership, the Trade Ministry said.
Crude oil exports -- Vietnam's largest foreign exchange earner -- are estimated at 8.3bio US$ this year, followed by textiles at 5.8bio US$, 3.6bio US$ from footwear and 3.4bio US$ from seafood exports, the Trade Ministry said.
The highest growth in earnings this year was rubber, which would bring in 1.27 billionbio US$, or 58.3% more than last year.
Coffee exports would rise 49% on 2005 to 1.1bio US$. Vietnam is the world's biggest exporter of robusta coffee.
The government's statistics office is expected to release full trade figures later this month.
Source: Reuters
Tuesday, December 12, 2006
IPO: Viet Thang Textile raises 1.8mio US$
Viet Thang Textile Co raised 29.2bio VNDong (1.8 mio Us$) from selling 2.8mio shares to Vietnamese investors. The average price was at 0.65US$, 0.02US$ above the initial offering price. Thus, the market value of Viet Thang rose by 0.3mio US$ to 9.1mio US$.
Viet Thang has joint ventures with South Korean and Russian firms in Ho Chi Minh City to produce yarn, fabric and jackets for export.
Viet Thang was established in 1960 and is a member of the Vietnam National Textile and Garment Corp. It produces and trades fiber, towels, materials and machinery for the industry.
Source: Reuters
Viet Thang has joint ventures with South Korean and Russian firms in Ho Chi Minh City to produce yarn, fabric and jackets for export.
Viet Thang was established in 1960 and is a member of the Vietnam National Textile and Garment Corp. It produces and trades fiber, towels, materials and machinery for the industry.
Source: Reuters
Thursday, November 23, 2006
Textile company auctions shares next month
The Viet Thang Textile Company will auction state shares to the public early next month. It will sell 2,800,000 state shares, or 20 percent of its total shares, in an initial public offering on Dec. 8 on the Ho Chi Minh City Securities Trading Center.
Ho Chi Minh City-based Viet Thang set a starting price for bids at 10,050 dong ($0.63) per share, which suggested the firm would be valued at $8.8 million.
Viet Thang, which did not provide shareholder details, has two ventures with South Korean and Russian partners in Ho Chi Minh City to produce yarn, fabric and jackets for export.Viet Thang was established in 1960 and is a member of the Vietnam National Textile and Garment Corp. It produces and trades fibre, towels, materials and machinery for the industry.
Ho Chi Minh City-based Viet Thang set a starting price for bids at 10,050 dong ($0.63) per share, which suggested the firm would be valued at $8.8 million.
Viet Thang, which did not provide shareholder details, has two ventures with South Korean and Russian partners in Ho Chi Minh City to produce yarn, fabric and jackets for export.Viet Thang was established in 1960 and is a member of the Vietnam National Textile and Garment Corp. It produces and trades fibre, towels, materials and machinery for the industry.
Wednesday, November 15, 2006
WTO deal could hit agri-product exports
WTO entry commitments will help Vietnam attain good growth rates in its pivotal industries such as clothing, footwear, and other exports, said Jonathan Pincus, a senior economist from the economics department of UNDP Vietnam. “Given the removal of quotas, Vietnamese garments and textile products will have the opportunity to enter the larger world market. However, if the US Congress insists that it will approve permanent normal trade relations (PNTR) it will also move to restrict the growth and development of this industry in Vietnam. I am afraid it will create an unfortunate precedent for the implementation of our commitments ,” commented Pincus.
Moreover, the fact that US garment groups have asked to establish a mechanism to directly oversee the Vietnam garment industry is very likely to have adverse impact on the growth of the industry.Commitments on agriculture, according to Pincus, are challenges to local farmers.
However, they might not create negative changes because Vietnam agricultural products have been flooding onto the world market, Pincus said. It is forecasted that maize and cotton could be the most affected by the commitments.At present, the maize industry in the US, the worlds biggest exporter of maize, is subsidised to the tune of hundreds of millions of dollars every year by the US government. Given this colossal subsidy, maize exports from the US are more than easy to compete with Vietnam’s maize products. Consumers, processors, and livestock raisers will benefit while maize growers are likely to face harder times.Things might be similar in the cotton industry. The Vietnamese cotton industry is not very strong as production is small and it is low quality cotton at a high price. Given these weaknesses, cotton growers in Vietnam are finding it difficult to survive so it is certain that they could not compete with US growers who receive subsidies from their government.
Moreover, the fact that US garment groups have asked to establish a mechanism to directly oversee the Vietnam garment industry is very likely to have adverse impact on the growth of the industry.Commitments on agriculture, according to Pincus, are challenges to local farmers.
However, they might not create negative changes because Vietnam agricultural products have been flooding onto the world market, Pincus said. It is forecasted that maize and cotton could be the most affected by the commitments.At present, the maize industry in the US, the worlds biggest exporter of maize, is subsidised to the tune of hundreds of millions of dollars every year by the US government. Given this colossal subsidy, maize exports from the US are more than easy to compete with Vietnam’s maize products. Consumers, processors, and livestock raisers will benefit while maize growers are likely to face harder times.Things might be similar in the cotton industry. The Vietnamese cotton industry is not very strong as production is small and it is low quality cotton at a high price. Given these weaknesses, cotton growers in Vietnam are finding it difficult to survive so it is certain that they could not compete with US growers who receive subsidies from their government.
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