A new Vietnam garment factory is being constructed

Tay Son Joint Stock Company - a Vietnam clothing manufacturer in Binh Dinh Province has started a construction of a new garment factory last Sunday. 

This new clothes factory is located in Phu Phong Town, covering an area of 12,471 sq.m, including two four-storey garment factory, catering zone and product display hall. Upon the completion, this new clothing manufacturer is supposed to create jobs for over 3,000 people.
 

The first phase of the project has proposed to be completed  in the first quarter of 2012. When this part of the garment factory is set in operations, the production capacity is targeted to be around 400,000 suits a year.
 

The development of a new Vietnam clothing manufacturer is a step in the regional planning stated by the Government in the Vietnam garment and textile development plan for the 2011-20 period which outlined Binh Dinh is a high potential province for the establishment of garment factories as well as for the launch of textile and garment industrial clusters.

Vietnam clothes manufacturers are on the way to fulfill the development target for the 2011-20 period.

It is stated recently that total garment export turnover was estimated to reach US$6.16 billion in the first half of the year 2011, which is 30% increase compared with last year and is the highest growth rate in the past five years. At this rate, it is promising that Vietnam garment exporters could reach the target of $13.2 billion revenue earned from garment exports at the end of the year and only the way to pursue the target of $18 billion in export value by 2015 and $25 billion by 2020, as written in the Development Plan for Garment and Textile for the 2011-20 period by the Government.

At present, TPP is still ongoing negotiation and the parties involved have not put forward any suggestions on the origin principle of garment products. However the nine countries have aimed to made a conclusion before the summit of the 21-member Asia-Pacific Economic Copperation forum in Honolulu in November. Among the other eight negotiating countries for TPP, the US is Vietnam clothes manufacturers' biggest export market and garment export value to this market accounts for 55% of the Southeast Asian region's total garment exports.

To take the great trade opportunity of joining the Partnerships and to be proactive on the run to deepen the penetration into the US market, as part of the development plan for the 2011-20 period, the Government has made some outlined points to concentrate on developing which include the plan to focus on research and development of raw materials production and using technologies in production, from which Vietnam garment factories to take control all over the procedures of production from raw materials to finished products. If the implementation of this plan is proved to be efficient, the chance of Vietnam clothing factories to meet even the strict rules of origin from the TPP is achievable.

Vietnam garment factories could be the potential destination for Australian companies.

It is said that there has been a shift in manufacturing factory's choice of Australian companies lately resulting in the loss of manufacturing jobs in main land Australia. Many of Australia companies have made the decision to operate their manufacturing factory overseas and Asia countries have been considered the most rational choice for many reasons.

With the past experiences and current situation of the trade between Australia and Vietnam, Vietnam clothes manufacturers are working hard to enhance its production, from which prove that their garment factories are well-prepared for Australian companies to place orders.

The latest step in the trade relationship between Australia and Vietnam was the signed Free Trade Agreement amongst ASEAN-Australian-New Zealand which results in the commitments on regional rules of origin and tariffs removing (29% of tariff lines by 2010 and on almost 90% by 2025), the improvement on the terms of business entry and stay and investment protections. This Agreement has made a clearer path for Vietnam clothes manufacturers to penetrate the Australian markets with Vietnamese garment products because textiles and garments from Vietnam will be tax-free when being exported to Australia. More over, the Agreement has opened a new door for Australian investors to do their business deals in Vietnam.

With many competitive advantages over other neighbor countries in Asia and even China for labour wages, young and enthusiastic workforce and tons of foreign capital, Vietnam garment exporters should self-prepare with the broad information about Australian market in order to call for investments and cooperation in manufacturing garment products from Australian brands.

So why dont you - Australian companies - give Vietnam clothes manufacturers a vote if you are currently on the process of choosing a country for your manufacturing operations.

Vietnam garment exporters are planning to meet the rule of origin from Trans Pacific Partnership.

A good news is the construction of the Dinh Vu polyester fibre plant in Hai Phong city, the north of Vietnam is almost complete and will be ready to launch by August this year. In addition, PetroVietnam Petrochemiacl and Textile Joint Stock (PVTex) company and some foreign partners have signed five contract to provide services to the factory.

With the total investment capital of US$324.85 million and promising production capacity of 500 tones of fibre a day, Dinh Vu polyester and fibre plant has been destined to be the supplier for many garment factories in Vietnam. It is said that once going into commercial operation, the plant will meet about 40 percent of market demand of Vietnam clothes manufacturers for raw materials.

It is a promising future for garment industry in Vietnam to fulfill the strict requirement of origin from the Trans Pacific Partnership which would open a straight and easier way for Vietnam clothes manufacturers to export their products into their target markets namely the U.S. Currently, Vietnam garment factories depend much on Chinese supplier of raw materials which put these clothes manufacturers in the situation of trade deficit and reliance on China as the Chinese yuan keeps appreciating.

To enhance and smooth the exports procedure of Vietnam clothes manufacturers, it is critical to take into account all the steps in making finished products from sourcing materials to finishing products as Vietnam is known as being lack of profession in terms of weaving, dyeing and finishing fabrics. 

Practically 60% to 70% the fibre produced in Vietnam are being exported but Most of Vietnam garment factories have to import fabrics for production. To prevent this redundancy, it is necessary to develop the supplementary factories so that Vietnam garment exporters could take the initiative in the whole process on the way to enhance the textiles industry in Vietnam.

It is a proactive approach that should be taken into account by any party related. No exception, Vietnam Garment Factory has looked beyond the situation to be more localization in the production of garment products. 

Vietnam garment factories with new trade opportunites around the area

Recent researches have shown that in the first 5 months of 2011, Vietnam exported goods worth US$30 million and became the 13th biggest export to Myanmar. Came second in the run after steel export, textile, garment material exports from garment factories in Vietnam brought in US$5 million revenue for Vietnam clothes manufacturers.

It is said that Myanmar is a potential and favourable market for Vietnamese garment exporters since domestic production in Myanmar is still humble. More over, Myanmar Government prefers developing the trade cooperation with neighboring countries on the way to enhance the country's import and export activities. 

This is a great business opportunity for Vietnam garment factories to catch and increase their global market share at the time when major markets for Vietnam garment exporters are being shrunk as a result of economic recession.

Rising revenue for Vietnam clothes manufacturers on exports to the US.

There are some facts about the current situation of Vietnam-US trade revenue in the viewpoint of Vietnam garment factories while the negotiation on Trans Pacific Partnership is happening. 

In fact, all of Vietnam garment exporters hope the result would be favorable to their sides.
 

In the first four months of the year 2011, total export value of Vietnam garment factories is US$2 billion, making garment on top of the major products exported to the US from Vietnam.
With all of the rising results, it is predicted by experts that Vietnam clothes manufacturers with their exports to the US will surpass US$154 billion at the end of this year and Vietnam is likely to become the US's largest exporter in the ASEAN region.
 

It will be a promising future for Vietnam clothes manufacturers especially if Vietnam is agreed to join the Partnership.
 

However, the result is still left unfolded until the meeting closes on 24th June. 

More and more opportunities for Vietnam clothing manufacturers from overseas

There is a concern from Chinese textile and garment companies about the decrease of orders from potential overseas customers recently as the fact that a small number of customers have turned their destination to Vietnam garment factories and listed those clothes manufacturers as potential low-cost area, about 30% cheaper than China. Therefore, It is the time for clothing factories in Viet nam to catch this opportunity for exports taking the advantage of 0% on export duties for Vietnam garment products according to Vietnamese Customs. 

Some of the potential customers for Vietnam clothes manufacturers are the US, European countries and Japan. While companies from the US and European  prefer big orders, Japanese customers usually ask Vietnam garment factories to deal with small quantities of products in a range of design and colours. In the year 2010, it is approximately US$1.2 billion profit went to the pocket of Vietnam clothes manufacturers as a result of exports.
Many Vietnam clothing factories took advantage of the Vietnam-Japan Economic Partnership Agreement 2009 which exempts Vietnam garment from taxes. At the moment, they - Vietnam clothes manufacturers - are looking forward to the success of the negotiation on the inclusion of Vietnam into Trans Pacific Partnership, from which Vietnam garment factories can get more and more import tax advantage into the US. 

The biggest disadvantages for Vietnam clothing manufacturers is the ability to source raw materials such as cotton, yarn, fabric… which are critical criteria in the rules of origin presented in the Partnership. Currently, if a US company wants to import a Vietnamese origin textile product, for example T-shirts, singlets tank tops and similar garments, knitted or crocheted which are made of cotton, they will have to pay 16.5% duty to be able to be imported into the US. These types of garment are of the core export products for Vietnam clothes manufacturers and the import duties are said to be the most concerns made by Vietnam garment exporters.

A new Vietnam clothing manufacturer from the North

After 16 months of construction, a new Vietnam clothing manufacturer named Phu Binh garment factory was put into operation in Kha Son Industrial Complex, Thai Nguyen province, which is already home of many Vietnam garment factories. To be more specific, the new Vietnam garment factory was named after the district in which it is located became the biggest Vietnam clothing factory to date in the remote province with the building cost of VND180 billion (nearly US$9 million).

This Vietnam clothing factory consists of 64 high quality garment-manufacturing lines with 32 production lines specialized in weaving items and 32 production lines specialized in hosiery. More over, the appearance of a new Vietnam clothing manufacturer has proposed the jobs for over 4,000 employees, of which over 80% is local people. This Vietnam garment factory also plan to meet consumer demand for processing fabric, yarn and other new products in the area.

Vietnam clothing manufacturer discussion in Ho Chi Minh City- TPP

The negotiations on the Trans-Pacific Partnership Agreement (TPP) is taking place in Saigon at the moment with the participation of New Zealand, Chile, Singapore, Brunei Darussalam, Peru, United States, Australia, Malaysia and Vietnam. If an agreement is made with the inclusion of Vietnam in to the TPP, Vietnam clothing manufacturers will be given a great opportunity to expand their market shares in the US. Recently, there are some issues made by 51 members of the US Trade Representative about the fact that Vietnam clothing manufacturers can take import tax advantages from the Agreement which may lead to the dominance of Vietnamese clothes in the US market and the reduce of textile and apparel jobs for U.S people. These concerns are critical because Vietnam clothing manufacturers are already the second largest supplier of textiles and apparel to the US behind China. Therefore, the meeting would concern about the extent to which some new rules should be presented if Vietnam is given the right to join the Partnership. The meeting will end on 24th June and until that time, it will grab the most attention of Vietnam clothing manufacturers.