Prioritize the textile industry, do not focus so much on the material

What do you think about the growth opportunities of the textile industry in the future?

In the world market, the annual growth rate of textile industry is about 2-2.5%. The current production capacity is almost all concentrated in Asia. In it, China is a region, ASEAN is the other, and South Asia is another one. At present, China is gradually getting richer, leading to reducing its production, pushing the pressure of textile production on other countries, including Vietnam. Thus, it can be said, the market for the textile industry is quite open. The growth opportunities are always there, and it is important to take advantage of them.

The draft amendment for the development plan of textile industry of the Ministry of Industry and Trade clearly states that the development orientation of the four key sectors is the garment industry, textile industry, supporting industry and fashion industry, in which the textile industry is ranked first. So do you think it is reasonable?

In fact, the demand for fabric in the country is very large, but Vietnam is mainly focused on garment industry. Thus, in the short term, the growth of the industry is always good. However, in the long term, in the next 10 to 20 years, it may be unstable again. When focusing on sewing, foreign invested enterprises in Vietnam mainly attract laborers without qualifications, and only use their strength. By the age of 30 this work force is almost spent, then being pushed out of society causing unpredictable consequences.

Thus, the most important thing in the textile and garment plan is to focus on the textile industry, produce fabric, improve the value. Notably, the dyeing is considered as the “heart” of the textile industry. All products of the textile industry include: yarn, weaving, dyeing, and fabric. In order to do well, it must use a work force of engineers with a certain level of training. Only when developing in the intellectual area for the accumulation of knowledge can Vietnam’s textile industry be sustainable.

The draft amendment for the textile industry development plan also clearly cites the development of the support industry as well as the fashion industry, in which emphasizing the investment in the production project of auxiliary materials, fabrics, and fibers to form the global supply chain. So with the conditions of Vietnam, is this feasible?

I think that Vietnam should not develop the field of textile raw materials. In 2016, in the total of global materials, cotton accounted for 25 million tons, grown in 80 countries and territories; 5 million tons were fibrous fibers such as silk and wool, and the remaining 61 million tons were polyester. With the current demands, by 2035, the global materials of the textile industry will increase about 180 million tons, with mainly polyester fibers.

About the 25 million tons of cotton mentioned above, China accounted for 6 million tons and India had 7 million tons. This is a plant that only grows in barren regions. The suitable areas in Vietnam are Ninh Thuan and Binh Thuan, and they are small areas. The total production of Vietnamese cotton would not be enough for one month if served by a small plantation. Currently, cotton cultivation programs in some Asian countries such as Thailand and South Korea are bankrupt, as many other crops are more valuable. Thus, I recommend to remove the cotton growing solution in the plan.

About polyester yarn, in 2016, the world needed 61 million tons with the Asian region providing 54 tons, of which China accounted for 48 million tons. Chinese products flew into Vietnam. When China is excessively abundant, it is clear that Vietnam should not focus too much on polyester fiber. In the long term, it has to be developed, but it should be done gradually because at least for the next five years, the future of this commodity has not yet been seen. At present, materials are internationalized and can be imported anywhere.

About the fashion industry, Vietnam should not “dream” of fashion production, the lowest is processing, followed by the production of original equipment. That means customers bring the sample, the company can read and produce according to the template, which has fashion elements already. China is now at its original equipment level. Countries such as Japan and South Korea have reached the design level. Therefore, Vietnam should not plan and encourage enterprises to start with fashion.

In order to focus on high efficiency for the textile industry, from your point of view, what is the feasible solution?

According to the fabric demand of the whole country, the plan needs to cite clearly and set a time to complete the targets. In my opinion, only by appealing to foreign investment can it be done. Now, the scale of the whole industry is about US $25 billion, of which US $18 billion is from FDI groups, and South Korea accounts for US $5.7 billion. Appealing to FDI cooperation, the domestic enterprises must work seriously and responsibly. If we have domestic fabric sources, the other issue such as the fashion industry can develop.

Thank you, Sir!