Assessing Growth Quality Based on Economic Criteria

response, and product prices are unstable because they depend on the input material prices of foreign suppliers.

By 2009, when the Dung Quat oil refinery was established, the plant's polypropylene products could only meet 20% of the country's total demand, while all other fibers still had to be imported. It is expected that when the Nghi Son Refinery and Petrochemical Complex is established and operates at 100% capacity, it will only meet a part of the domestic demand for fibers, while nearly 50% of the total products will still have to be imported [7].

The mechanical industry that manufactures spare parts and details for the textile industry as well as the industry that supplies non-metallic spare parts and details for the textile industry are currently underdeveloped. Most spare parts and details of machinery, equipment as well as raw materials for sewing exported goods must be imported. Textiles and garments are often exported through a third country, so most raw materials and spare parts are supplied by customers.

All dyes currently used must be imported; The proportion of auxiliaries and basic chemicals produced domestically to supply the textile industry accounts for 5-15%, but most of them are low-value products. Although the quantity is large, the value only reaches 4.55% of the total demand of the textile industry.

Currently, our country's industrial garment industry develops mainly in the form of outsourcing production because Vietnam has not been proactive in the main source of raw materials. The fashion industry is still too weak, especially the accessory manufacturing industry is still too small, unable to keep up with the rapid development of the garment industry's production capacity and the fluctuating demands of the market. When the garment industry develops to the US market, facing large orders, direct buyers, fast and timely delivery times, garment manufacturing enterprises are confused and cannot meet them.

Up to this point, in Vietnam there are only facilities producing a few main types of accessories such as: sewing thread, cotton pads, adhesive pads, plastic buttons, zippers, elastic bands, labels, packaging and only meeting a small part of the demand.

of the domestic market.

From 2000 to 2003, total import turnover was always greater than total export turnover, but in the period 2004-2006, total export turnover exceeded total import turnover. This is a sign of increased value from proactive production of raw materials for textiles and garments, however, the situation is not very promising after 3 years from 2004 to 2006.

Table 2.14: Vietnam's textile and garment import situation 2000 - 2006

Unit: Million USD

Turnover

Year
2000	2001	2002	2003	2004	2005	2006
Cotton	90.4	115.4	111.6	105.4	190.2	167.21	219
Fiber	237.3	228.4	272.6	317.5	338.8	339.59	544.6
Fabrics of all kinds	761.3	880.2	1,523.1	1,805.4	1,926.7	2,398.96	2,984
Raw materials, machinery	1,194.7	1,397.9	1,513.4	1,825.9	1,724.3	1,774.2	1,952
Import (excluding dye chemicals)	2,283.7	2,621.9	3,420.7	4,054.2	4,180.0	4,679.96	5,699.6
Export	1,891.9	1,975.4	2,732.0	3,609.1	4,385.6	4,838.4	5,834

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Source: Vietnam Textile and Garment Group

2.2.2.8. Textile and garment industry management organization

In December 2005, the Government issued a decision to establish the Vietnam Textile and Garment Group (Vinatex) from the model of General Company 91. Vinatex has a parent company and subsidiaries and associated companies. The parent company plays the leading role of the group, with the function of both investing capital and providing business services to member companies. The group has the participation of many domestic and foreign economic sectors, in which the State plays an orientation role. In addition to a number of companies that have been converted to operate under the parent-subsidiary model, the Group also includes members with other interests besides capital, who are business partners, and have contractual relationships regarding brand and reputation.

(1) - State-owned enterprises

State-owned enterprises currently belong to two areas: Central State-owned enterprises and Local State-owned enterprises. The capital and assets of state-owned enterprises are assigned to enterprises in many forms such as State-owned enterprises, State-owned one-member limited liability companies, joint stock companies, etc. Enterprises are autonomous in terms of plans and products and are responsible for their production and business efficiency on the basis of capital preservation, ensuring budget payment and compliance with State regulations. By the end of 2007, large enterprises such as Viet Tien Garment Company, May 10 Company, Phuong Dong Garment Company had completed the procedures and equitization plans, properly implementing the equitization roadmap of State-owned enterprises set out by the industry.

(2) - Non-state enterprises (mostly SMEs)

In recent years, the type of enterprise has been growing strongly in both quantity and scale. There are many forms of enterprises in this area such as cooperatives, limited liability companies, private enterprises, production groups, individual households... which are managed by the specialized Departments of Industry of provinces and cities.

(3) - Foreign invested enterprises (FDI)

Although the textile and garment industry of countries such as China and India has developed strongly in recent years, the investment flow from other countries to Vietnam is still strong to exploit Vietnam's current advantages. This is a region that has made significant contributions to the Vietnamese textile and garment industry in terms of economic and social issues. Enterprises with foreign direct investment are also diverse and organized in many forms: limited liability companies, joint stock companies, joint ventures, 100% foreign-owned companies... Regardless of the form of development, business model and goals, foreign-invested enterprises must still operate according to Vietnam's foreign investment law, and are still subject to inspection and macro-management by competent authorities to create an equal environment, protect rights and share responsibilities in the production and business process.

2.2.2.9. General assessment

The world textile and garment market in the next 5 years is expected to become increasingly competitive. Export competitiveness is generally still in favor of developing countries such as China, India, Vietnam, Pakistan, Cambodia, etc. However, the world textile and garment trade will increasingly be concentrated in the hands of multinational retail corporations, from investment transfer, production, product design, market segmentation, organization of production and supply chains to final product consumption. Small countries, manufacturers and small intermediary companies will increasingly find it difficult to develop if they are outside these supply chains.

Science and technology are developing very quickly, research on the application of Nano technology, special functional fibers, and environmentally friendly natural materials such as bamboo, soybeans, corn, etc. promise more drastic changes in the future. In particular, the trend of trade protectionism of major countries, especially the United States and partly the EU, towards Vietnam and China is a way for these countries to protect the domestic textile industry and regional partners. For Vietnam, after our country became an official member of the WTO, the United States applied the "textile import control mechanism" in 2007-2008 and was able to conduct anti-dumping investigations. This has caused anxiety and insecurity for US importers and retailers, strongly impacted Vietnamese investors and exporters, forcing our country to apply self-monitoring measures for exports in 2007 - 2008. Joining the WTO, the great advantages and many difficulties that the Vietnamese textile industry will have to face can be generally assessed using the SWOT model for the Vietnamese textile industry as follows:

(1) - Strengths (S)

- Garment industry equipment has been renovated and modernized up to 90%;

- Quality products accepted by most demanding customers;

- Has built close relationships with many importers and large consumer corporations in the world;

- Evaluated by customers as having advantages in labor costs, good sewing skills and craftsmanship.

- Vietnam is considered a politically stable and socially safe destination, attractive to foreign traders and investors.

(2) - Weakness (W)

- Export garments are mostly processed, design and fashion are not yet developed, the rate of production by FOB method is low, production efficiency is low;

- The textile and supporting industries are still weak and have not developed commensurate with the garment industry. There are not enough export-quality raw materials to supply the garment industry, so the added value is not high;

- Most textile and garment enterprises are small and medium-sized, with low ability to mobilize investment capital, limiting the ability to innovate technology and equipment;

- Poor production management and technical skills, unsystematic training, low productivity, common products, not diverse in types;

- Marketing capacity is still limited, most textile and garment enterprises have not built their own brands and have not built long-term strategies for the enterprise.

(3) - Opportunity (O)

- The shift in textile production to developing countries, including Vietnam, opens up new opportunities and resources for textile and garment enterprises in terms of capital, equipment, production technology, advanced management experience, and skilled labor from developed countries;

- Vietnam becoming a member of the World Trade Organization (WTO) is a great opportunity for Vietnam's textile and garment industry, attracting investors to open new markets and new cooperative relationships;

- The domestic market has a population of 84 million people with an increasingly improving standard of living, attracting the attention of investors and businessmen.

(4) - Challenge (T)

- The starting point of Vietnam's textile and garment industry is still low, the supporting industry has not really developed, raw materials are mainly imported, the processing rate is high, the competitiveness is weaker than other countries in the region and the world... are challenges when integrating into the global economy;

- Vietnam's legal documents are still being completed, the staff is still lacking and limited in expertise, foreign languages, and skills. Does Vietnam's textile industry have enough capacity to receive the world and regional textile flow?

- Increasing technical, hygiene, safety, environmental, social responsibility and anti-subsidy barriers in major markets to protect domestic production pose a challenge to competition.

2.3. Growth quality of Vietnam's textile and garment industry

2.3.1. Assessing growth quality according to economic criteria

Textiles and garments are a key industry of Vietnam in the socio-economic development strategy. Over the past years, Vietnamese textile and garment products have continuously developed in terms of quantity, structure of types and turnover value, becoming a key export item and occupying an important position in the national economy. The successes of textile and garment products in the international market have marked a good start in the cause of economic innovation and development in Vietnam. In the entire textile and garment industry, textile and garment is an industry with great development potential and a great competitive advantage in the international arena.

(1) - Internal restructuring of the textile industry

In recent years, the policy of moving textile facilities to rural areas, suburbs and industrial parks and clusters has gradually become effective and is moving towards restructuring the textile industry by region. This is a very important orientation for the long-term development of the textile industry based on the economic and technical characteristics of the industry.

The majority of workers in the textile industry are unskilled workers from agricultural labor sources. Therefore, developing textile enterprises in rural areas will take advantage of local labor resources, avoiding the migration of labor from rural to urban areas. Accordingly, social problems are simultaneously resolved in urban and rural areas.

Direct production costs of textile and garment enterprises are also significantly reduced thanks to the comparative advantage of labor wages. This saved cost source will basically offset the costs incurred such as transportation costs, distribution costs, etc. when moving production to rural areas, industrial zones and clusters. Moreover, workers will directly benefit from the savings in daily social costs.

Moving textile production facilities to rural areas and industrial parks and clusters is a reasonable way to solve environmental pollution problems. Enterprises will perform better, more systematically and more responsibly in the process of treating waste that pollutes the environment and it will be easier for authorities to inspect and monitor the environmental impact of enterprises.

However, the structure of the textile industry in general and the textile industry in particular is still unreasonable, as shown in the following points:

Firstly, Table 2.8 shows that by the end of 2007, the proportion of enterprises in the 3 regions: the North was 20.8%, the Central was 5.3% and the South was 74%, corresponding to the proportion of garment products in the 3 regions being 30%, 10% and 60% respectively. This figure reflects the process of structural shift by territory and region.

regions have not achieved high efficiency. With the economic and technical characteristics of the textile industry combined with the socio-economic conditions, geography and labor resources of each region, the researcher believes that it is necessary to continue to shift the structure towards increasing the proportion of enterprises, product proportion and industrial production value of the textile industry in the Central and Northern regions to take advantage of local labor resources and industrialize agriculture and rural areas with labor-intensive industries.

Second, the structure of Vietnam's textile and garment products is seriously unbalanced, as shown in the figures in Table 2.6. We often say that Vietnam's textile and garment industry is the "factory" of the world's textile and garment industry, with large industrial production value and high growth rate, but economic efficiency indicators are low because we have not yet developed key stages in the internal value chain of the industry, in which the textile and garment supporting industry plays a very important role. In the industry's product structure, the proportion of supporting products and materials accounts for only 1.6% compared to 64.8% of textile and garment products. This confirms that the textile and garment supporting industry is underdeveloped, and most of the raw materials must be imported, although we have built many programs, plans, and policies to support the development of the textile and garment supporting industry.

Third, the equitization process of state-owned textile enterprises, although promoted, has generally not met the requirements of practical development of the industry. Textile enterprises in the private economic sector have had a relatively high growth rate in recent years, but the production scale is only small and medium, so the number of enterprises is large but the production value is low compared to large enterprises in the state economic sector. Therefore, the economic efficiency of the whole industry is not high. The researcher believes that it is necessary to continue to promote the shift of investment capital flows, accordingly, private investment and foreign investment will be the main forces holding this industry to promote efficiency in production and business activities.

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