Local producers have been able to ensure material supply for denim production, with localization rate in denim trousers reaching 55 – 60 per cent, said Vice General Secretary of Vietnam Textile & Apparel Association (VITAS) Nguyen Thi Tuyet Mai. Mai released the information at a workshop on the sidelines of the 4th Denimsandjeans.com Vietnam Show that took place in in Ho Chi Minh City recently.
According to her, both domestic and foreign firms in the field have been actively investing in modern production assembly and technology. Particularly, Vietnamese companies are striving to increase their involvement in production, including design work. Currently, the sector has formed a complete supply chain in denim fabric production as it is capable of supplying itself with fabric and yarn. However, the number of enterprises operating in the denim industry remains modest. The proportion of denim products, meanwhile, makes up only 10 – 20 per cent in the structure of Vietnam’s garment-textile exports.
Vietnamese garment-textile firms are changing their production models towards meeting standards required by free trade agreements signed by the country and taking part in the global supply chain. As such, the VITAS said it is a favourable time for foreign companies to approach the Vietnamese market for machine-equipment supply and technology transfer.
Asia Division Director Jordi Juani of the Spanish finishing specialist for sustainable clothing Jeanologia stressed the importance of switching to more advanced production models, as the current denim production poses a threat to the environment. So far this year, textile and garment export turnover is estimated at $9.43 bn, an increase of 9.8 percent from the same period last year.