聚焦纺织品印花产业的商机与未来
2019.05.20-22 广州琶洲保利世贸博览馆
 

Overseas visit – Vietnam: The business opportunity of textile printing comes back!

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Overseas visit – Vietnam: The business opportunity of textile printing comes back!



The organizer of the Vietnam International Textile Printing Industry Technology Exhibition--Hongkong Allallinfo Media Group Co., Ltd. the project team of textile printing adheres to the initial heart of leading the market trend, after visiting the local printing market in Cambodia; it has been rushed to Vietnam and set foot on it again to explore the international textile printing market.

With the increasingly fierce market in China's textile printing industry, more and more equipment manufacturers or material suppliers choose to spread their business into overseas markets, especially Southeast Asia. Among them, the Vietnamese market is one of the most common choices. What is the development of local printing factories in Vietnam? What is the status of the factory in terms of machine investment? The following is the market analysis and real sharing after the visit, hoping to provide reference for more investors who want to enter the Vietnamese textile printing market.





Vietnamese textile and garment industry continues to develop and see the signing opportunities of the trade agreement

According to statistics from the Ministry of Industry and Trade of Vietnam, in the first nine months of 2018, Vietnam textile and apparel exports reached US$22.56 billion, while imports of textile and apparel raw materials increased significantly, including imports of various types of cotton reaching US$2.41 billion, growth of 30.3%. Imports of fabrics reached US$9.39 billion, an increase of 13.5%; yarn imports amounted to US$1.78 billion, an increase of 34.6%.

The production of raw materials still depends on imports is the biggest shortcoming of Vietnamese textile and apparel. After the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP) and the Vietnam-EU Free Trade Agreement (EVFTA) came into effect, while enjoying many benefits, the Vietnamese textile and garment industry must also abide by the origin rules of their respective trade agreements.

A new generation of free trade agreements such as the Comprehensive and Progressive Trans-Pacific Partnership Agreement (CPTPP) and the Vietnam-EU Free Trade Agreement (EVFTA) are expected to enter into force at the end of December and are expected to bring huge opportunities to the Vietnamese textile and apparel industry. . In the case of zero tariffs in the Comprehensive and Progressive Trans-Pacific Partnership Agreement, the Vietnamese textile and apparel industry will have the opportunity to expand its market share in countries with high tariffs like Canada, New Zealand and Australia.








However, both of these two agreements have demanding rules of origin. Among them, the Comprehensive and Progressive Trans-Pacific Partnership Agreement adopts the rule of Yarn Forward, and the Vietnam-EU Free Trade Agreement adopts rules starting from fabrics. It has added many obstacles to the Vietnamese textile and garment industry.

Fan Bisheng, a senior researcher at the Ministry of Industry and Trade of Vietnam, revealed that in order to give full play to the capabilities of the textile and apparel industry, the average annual demand for fabrics in Vietnam is 6 billion meters. Vietnam's domestic supply is only 800 million meters, and most of the rest depends on imports.





In order to solve the "bottleneck" of the raw materials, the chairman of the Vietnam Textile and Apparel Association, Wu Dejiang, said that the association has launched a specific action plan, calling on Vietnamese and domestic investors to increase investment in the lack of supply. In the first eight months of this year, Vietnamese textile and apparel introduced more than US$2 billion of foreign direct investment from investors from the European Union, the United States, South Korea, Japan, Thailand, and Hong Kong. In addition, the Vietnam Textile and Apparel Association encourages investors to invest in high value-added products.

Not only foreign-funded enterprises, but also Vietnamese companies have begun to invest heavily in textiles and dyes, aiming to make full use of the advantages of various free trade agreements. Vietnam enhances international company's stone washing process for denim and khaki; the newly completed Baoming Textile Factory in Nanding Province, Vietnam has fully realized the fully automatic closed production mode, and it is expected to take the lead in welcoming the opportunities brought about by various free trade agreements. Chen Dengxiang, CEO of Baoming Textile Co., believes that the textile mill will make up for the shortage of supply in 2025 and ensure the sustainable development of the Vietnamese textile and garment industry.






Factors contributing to the development of the Vietnamese textile industry

Some time ago, the increase in orders and the entry into force of various free trade agreements contributed to the opening of large export markets for Vietnamese textile companies. It can be said that this is the two major drivers of the development of the Vietnamese textile industry.

Statistics from the Vietnam Textile and Apparel Association show that in the first 10 months of 2018, Vietnam’s textile and apparel exports amounted to approximately US$29 billion, an increase of 16% year-on-year, and completed 79% of the annual plan.






The major export markets such as the United States and the European Union still maintained a good growth momentum. Markets like the members of the Trans-Pacific Partnership Comprehensive and Progressive Agreement, South Korea and China also showed a year-on-year surge. Among them, Vietnam’s exports to the United States reached US$10.5 billion, year-on-year growth of 12%; exports to Japan reached US$2.85 billion, year-on-year growth of 25.6%; exports to South Korea reached US$2.36 billion, year-on-year growth of 25.8%.

On the basis of excavating the market advantage, many Vietnamese textile companies have completed or are about to complete their 2018 production and operation targets. In order to solve the serious shortage of textile accessories, many Vietnamese companies are working hard to promote production scale expansion projects.



Real sharing: digital printing equipment continues to increase

During the visit, many printing factories expressed their interest in the printing exhibitions held at home and abroad. In addition, they knew that Allallinfo” is a professional platform for printing exhibitions and printing information, and has also visited our exhibitions in Vietnam and China. From this point of view, the influence of Allallinfo on overseas has increased.








During the visit to the market, the project team colleagues learned that many printing factories have focused on the issue of labor costs increase, and at the same time considered the trend of digital printing machines becoming more and more popular. Most of them switched to machines for production and replaced the original traditional production mode. The machine has advantages of high efficiency, bright colors, stable quality, time saving; many factories said that they plan to increase the number of machines.

Digital printing machines are increasing. They admit that the factory's technology and equipment are imported from China and are very popular in the local area. High quality and high requirements are the most basic standards for large brands to seek processing plants, while digital printing machines are the trend of the Vietnamese printing market. There is huge room for development in the Vietnamese textile and apparel market. Faced with the steady increase in orders, all kinds of printing machines with higher production efficiency have become the necessary choice for Vietnamese garment factories and shoe factories.




















The project team colleagues learned that many experts in the industry have indicated that they should promote the docking within ASEAN and aim to promote the development of the textile and garment industry. According to this, Vietnam's advantageous industry is the garment industry. Thailand's advantageous industry is the textile printing and dyeing industry. The two sides can achieve docking and build into a production chain, aiming to produce complete finished products. This will not only help to fully exploit the advantages of each country, but also promote the development of the ASEAN market.

It is worth noting that, according to the rules of origin of the general preferential system in the Vietnam-EU Free Trade Agreement, Vietnam accumulates the origin of other ASEAN countries. For the Vietnamese textile and garment industry, this is a wise decision to help Vietnam fully tap its advantages after Thailand and the EU signed a free trade agreement.







Vietnam International Printing Exhibition is ready to go

Vietnam International Textile Printing Industry Technology Exhibition is now in its third year. With successful experience in 2016 and 2017, it is believed that the 2018 Vietnam International Printing Exhibition will be further enhanced, attracting the attention of the world and marching for Chinese manufacturers and brings new opportunities of the Vietnamese market to Chinese manufacturers.








In 2018, the total area of Vietnam International Printing Exhibition is about 9,000 square meters. As of press time, the following companies have signed up for the exhibition: INKECO, BPG (Japan), Tianli, Keduo, Xiangzhou, Bihong, M&R, Kuluofu, Hongming, Xinjingtai, Dongguan Youkai, Hao Weida, Rugao Tianyuan, Xinyi, Hongke, Ouyue, Huaxin, Yingfengtai, Hengweitai, Shanghai Fengtai, Xingyuehua, Guangyintong, Guansheng Haoxing, Hongyin, Xinhuihong... Youre not got to miss such a great event!







Thanks to the customers for their high praise for the exhibition, this is the driving force of Allallinfo. In-depth visits to the market, actively contact professional audiences, and build the exhibition platform... We never stop. Let us go hand in hand and seize the unlimited business opportunities of the Vietnamese textile market!