|
Getting your Trinity Audio player ready...
|
The garment and textile industry, a cornerstone of Vietnam’s export economy, is undergoing a pivotal digital-enabled transformation driven by the necessity to adapt to modern challenges. Insiders suggest that technological renewal, green production practices, and enhanced trade promotion are essential for navigating the evolving landscape of the sector.
Despite a promising recovery in early 2024, with export revenue rising by 7.5% to $12.5 billion from January to April, the industry continues to confront significant obstacles. These include supply chain risks, digitalisation, and the transition to a circular economy. The Vietnam National Textile and Garment Group has underscored these issues as central to the sector’s future resilience.
Truong Van Cam, Vice Chairman of the Vietnam Textile and Apparel Association (VITAS), highlighted the downturn in export performance from $44 billion in 2022 to $39.5 billion in 2023. To restore and surpass the 2022 figures, the industry is focusing on sustainable growth strategies that integrate digital transformation and green production, with a target set for 2030.
Pham Van Viet, Chairman and General Director of Viet Thang Jean Company Limited, emphasised the crucial role of technology and restructuring in enhancing productivity and product quality. He pointed out that markets in Europe and the US impose rigorous standards for green production. To meet these demands, Viet Thang Jean has invested $12.5 million in eco-friendly conveyor belt technology and adopted advanced practices such as automatic fabric cutting, nano-dyeing, and Turkish washing. These initiatives have earned the company the Oeko-Tex certification, affirming that its products are free from harmful substances.
The shift towards modern production models is evident across the industry. Fadatech Fabric Dyeing and Printing JSC, for instance, has implemented digital printing technology to minimise environmental impact. According to Director Nguyen Huu Phuc, the transition involves substantial costs, including international training for staff on new technologies. Despite these expenses, the move is crucial for aligning with global environmental standards and enhancing the company’s competitive edge.
The broader industry sentiment reflects a recognition of the need for continued technological investment. As companies face economic pressures, the shift towards advanced technology and green practices is seen as a vital strategy for improving production efficiency and profitability. Embracing these changes will not only help the industry meet international standards but also bolster its position in the global supply chain.
Overall, the garment and textile sector’s adaptation to advanced technology and sustainable practices is key to overcoming current challenges and ensuring long-term growth. As Vietnam’s industry leaders continue to innovate and implement modern solutions, the sector is poised to navigate its complexities and thrive in an increasingly competitive market.
This need arises despite the country’s significant success in the e-commerce sector. Vietnam has seen remarkable growth in this sector, indicating a need for further digital transformation in other sectors.
As OpenGov Asia reported, Vietnam and Thailand are leading Southeast Asia’s e-commerce growth, with Vietnam emerging as the third-largest market in the region. The total gross merchandise value (GMV) of top Southeast Asian e-commerce platforms reached $114.6 billion in 2023, a 15% increase from the previous year.
Vietnam’s GMV surged by 52.9%, reflecting its rapid expansion and high growth rate over the past four years. Indonesia remains the largest e-commerce market, with Shopee and TikTok Shop dominating the sector. Influencers and AI are driving regional growth, while Vietnam focuses on cross-border e-commerce and digital transformation. Government initiatives aim to enhance e-commerce frameworks, support SMEs, and integrate digital solutions for sustainable economic development.
As the garment industry adapts to modern demands and environmental standards, its success will hinge on continued innovation and digital integration, reflecting broader trends in Vietnam’s economic development.
