+ Primary education level: 10%
+ Secondary education level: 53%
+ High school education level: 26%
+ High school graduate: 11%
Due to low educational level, the acquisition of complex modern science, technology and engineering is difficult. The majority of workers in textile and garment export enterprises are young, and 41% of direct production workers are aged 24-30, so they do not have much experience in production and their production capacity is limited. In this regard, the competitiveness of textile and garment export enterprises is not high compared to other countries in the region.
Regarding management staff, most of them have university degrees. Most of them were trained during the subsidy period, so their thinking is not dynamic, they are not bold in creating, innovating, daring to think, daring to do, and still have a heavy dependence mentality. The management organization is still cumbersome, the operating mechanism is ineffective, which has significantly affected the development of the industry.
Currently, in general, textile and garment exporting enterprises still lack technical staff (if calculated according to the ratio of engineers needed in an enterprise, enterprises can only meet 1/10 of the demand); in addition, the team of managers, skilled workers, staff specializing in model design, fashion, new product manufacturing, and marketing and business forces are still lacking. On the other hand, labor productivity in Vietnamese textile and garment enterprises is still low, not commensurate with the current production capacity of the industry and is only 50% - 70% of the production capacity of countries with developed textile and garment industries in the region such as China, Indonesia, Malaysia, Korea ... The above limitations greatly affect the production capacity and development of the industry in the coming time. Therefore, it is required that textile and garment enterprises need to develop a suitable investment strategy, in which it is necessary to focus on investing in human resource development.
In the early 1990s, wages in the Vietnamese textile industry were among the lowest in Asia. However, in recent times, the income of workers in textile enterprises has increased quite rapidly and steadily.
Table 2.3: Average wages of workers in textile and garment enterprises in Vietnam and some countries in the region
Unit: USD/person/year
Nation
2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | |
Vietnam | 710 | 710 | 720 | 740 | 760 | 780 | 790 |
China | 600 | 620 | 650 | 700 | 720 | 750 | 770 |
Indonesia | 330 | 940 | 890 | 1,000 | 1,200 | 1,400 | 1,500 |
Malaysia | 2,800 | 2,800 | 3,000 | 3,100 | 3,200 | 3,300 | 3,300 |
Singapore | 1,020 | 1,400 | 1,600 | 2,000 | 2,400 | 2,400 | 2,500 |
Maybe you are interested!
-
Current situation and solutions to improve accounting work of textile and garment export enterprises and general services - 1 -
Current situation and solutions to improve accounting work of textile and garment export enterprises and general services - 2 -
Current situation and solutions to improve accounting work of textile and garment export enterprises and general services - 10 -
Illustration of Linkage Forms of Textile and Garment Enterprises in Textile and Garment Industry in China -
Spillover effects of foreign direct investment on enterprises in Vietnam's textile and garment industry - 8
Source: Report on Vietnam's medium and long-term industrial strategy - UNIDO and Institute of Economic Development Strategy - Ministry of Planning and Investment 2006
Through the above table, it can be seen that the wages of workers in the Vietnamese textile industry have improved significantly. If in 1992, the income of a worker in the textile industry was 210 USD per year, by 2000 the income of workers had reached 710 USD/person/year (3.28 times higher than in 1992) and by 2005 this figure had increased to 780 USD/person/year (3.7 times higher than in 1992 and 1.1 times higher than in 2000). The income of workers in the textile industry has improved, and their lives have become more stable. Although the wages of workers in Vietnamese textile enterprises have increased compared to before, compared to some countries in the region, they are still low.
The average income of workers in foreign-invested enterprises is generally higher than that of other enterprises. If in 1993, the average salary of each worker was 363,000 VND/month, now it has doubled to about 800,000 VND/month, in some places the average salary even reaches 1-1.5 million/month, 1.5 to 2 times higher than that of workers in the state-owned and private sectors.
1.1.5. Current status of raw material supply
In textile production, raw materials play an important role and affect product quality and production efficiency. The textile industry uses two main types of raw materials: cotton fiber and synthetic polyester fiber. Other raw materials include wool, silk, other liber fibers, nylon, acrylic, basic chemicals and dyes... the most important of which are cotton fiber and synthetic fibers. The garment industry exports
Vietnam's textile and garment export enterprises use raw materials such as finished fabrics (mainly supplied by the textile industry) and other sewing accessories such as sewing thread... Currently, Vietnamese textile and garment export enterprises can only produce and supply a small part of cotton spinning materials, the majority still has to be imported from abroad. It should also be added that the quality of Vietnamese cotton does not meet the requirements of spinning technology, so only a small proportion (about 10%) can be used as additional materials. The large import of cotton raw materials has limited the development potential of the textile industry in general and textile and garment export enterprises in particular, as well as reduced its economic efficiency. In general, currently, textile and garment export enterprises are not proactive in raw materials and mainly have to import from abroad (90% of imported raw materials), domestic textile production only meets 12-16% of the demand for export garments.
1.2. Some results achieved in production and business of Vietnamese textile and garment export enterprises in recent times
1.2.1. Product structure
Currently, the product structure of textile and garment export enterprises is quite diverse with many different designs, thereby satisfying part of the needs of consumers. The main export products of the Vietnamese textile and garment industry are mainly woven fabrics, knitted fabrics, various towels, knitted clothes and ready-made clothes. Along with the development of the textile and garment industry in recent times, the products of the industry have increased rapidly in output over the years, especially the main products serving export needs such as clothes, fabrics, yarns, towels. The growth situation of some main products of the industry is as follows:
Table 2.4: Some main export products of the textile industry
Product
Unit | 2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | |
Silk fabric | Thousand tons | 322.2 | 356.4 | 410.1 | 440.6 | 475.9 | 518.2 | 537.4 |
Towels of all kinds | Million meters | 333.5 | 430.6 | 438.4 | 508.9 | 588.0 | 602.0 | 615.5 |
Knitted clothing | Million pieces | 34.5 | 45.8 | 53.1 | 51.4 | 72.2 | 111.4 | 132.4 |
Ready-made clothing | Million pieces | 302.4 | 337.0 | 375.6 | 489.1 | 618.6 | 784.0 | 801.6 |
Source: Statistical Yearbook 2004, 2005 and Vietnam & World Economy 2004 – 2005; Report of Vietnam textile and garment industry 2006
1.2.2. Export turnover
It can be said that the export turnover of the textile industry has grown quite rapidly. In the past 10 years, the textile industry has proven to be a key industry in the economy, making great strides in the export sector with an annual export growth rate of 30%, becoming an industry with high export turnover among the 10 main export products of Vietnam. That shows that the competitiveness of the textile industry has improved significantly. This is reflected in the export turnover of textile products continuously increasing over the years.
Table 2.5: Vietnam's textile and garment export turnover in the period 1996-2006
Unit: Million USD
Year
Export turnover textiles | Growth rate (%) | proportion / total (%) | |
1996 | 1150.0 | - | 15.2 |
1997 | 1349.0 | 17.3 | 15.4 |
1998 | 1450.0 | 7.48 | 15.5 |
1999 | 1746.2 | 20.43 | 15.1 |
2000 | 1891.9 | 8.34 | 13.1 |
2001 | 1975.4 | 4.41 | 13.1 |
2002 | 2732.0 | 39.31 | 16.5 |
2003 | 3609.8 | 33.97 | 14.6 |
2004 | 4429.8 | 18.96 | 16.9 |
2005 | 4772.4 | 7.74 | 14.8 |
2006 | 5834.4 | 22.2 | 18.2 |
Source: Statistical Yearbook 2003 and Vietnam & World Economy 2004-2005 (Vietnam Economic Times); textile industry report 2006
1.2.3. Some main export markets of Vietnamese textiles
+ US market: Before 2002, the US was the second potential textile import market of Vietnam after Japan. However, the export turnover of Vietnam's textiles to the US was very small, accounting for only 0.06% of the textile import turnover of the US. After the Vietnam - US trade agreement was signed, the export turnover to the US market increased rapidly and surpassed our other traditional markets, the EU and Japan, with the export turnover in 2004 reaching 2,474 million USD, accounting for 35.4% of the total export turnover of the industry and continuing to grow until now. According to forecasts with economic recovery, the import turnover of textiles of the US in the coming years tends to continue to increase.
+ EU market: is a large quota textile export market of Vietnam. Vietnam's textile exports to the EU have grown particularly strongly since the textile trade agreement between Vietnam and the EU was signed on December 15, 1992. In the period 1993-1997, the growth rate of textile and garment exports to this market reached more than 23%/year, accounting for nearly 40% of the total export turnover of the whole industry. In 1994, the export turnover to the EU market reached 298 million USD, accounting for 54.2% of the total export turnover. On November 17, 1997, the textile and garment trade agreement between Vietnam and the EU allowed Vietnam to freely export to the EU an amount equivalent to 7% of the EU's exports to the world market. The quota for the 1998-2000 period increased by 40% compared to the previous period and for the 2000-2002 period, both sides committed to expanding the market, thereby the EU agreed to increase the export quota by 30%. However, in the two years from 2001 to 2002, the export turnover of textiles and garments to the EU market tended to decrease from 617 million USD in 2001 to 540 million USD in 2002 (down 12%), in 2003 it tended to increase to 600 million USD, an increase of 11.1% compared to 2002. The export turnover of Vietnamese textiles and garments to the EU in 2004 reached 762 million USD, an increase of 31% compared to 2003.
+ Japanese market: Garments imported into Japan are about 17-18.5 billion USD each year. The Japanese market is Vietnam's largest non-quota export market with export turnover increasing rapidly, especially since 1994. In 1995, Vietnam was in the list of 10 largest textile and garment exporting countries to Japan. In 1996, Vietnam rose to 8th place and in 1997 became one of the 7 largest clothing exporting countries to the Japanese market with a market share of woven goods of 3.6% and knitted goods of 2.3%. In 1997, in
While textile exports to Japan from most countries decreased in both quantity and value, exports from Vietnam to Japan still increased. The main garment products exported from Vietnam to the Japanese market are: men's windbreakers, clothes for truck drivers, shirts, trousers... In the period 1999-2003, although the export turnover to the market increased compared to the previous period, it was on a downward trend. In 2000, it reached 619 million USD, an increase of 5% compared to 1999, but in 2001 it decreased by 0.5% to 616 million USD and in 2002 (with 419 million USD) it decreased by 20%. In 2004, the export turnover of Vietnamese textiles to Japan reached 531 million USD, a decrease of 10% compared to 2001.
Vietnamese textiles exported to Japan still face many difficulties and challenges, such as having to compete directly with Chinese textiles with diverse and rich designs, and supported by the government's import-export subsidy system, and textiles from ASEAN countries such as Thailand and Indonesia, which have maintained a high position among major textile exporters to Japan. Besides, Japan is a market with strict requirements on quality standards from raw materials, accessories, production processes, packaging, brands, delivery times, etc. Therefore, to expand market share in Japan, Vietnamese textile and garment enterprises need to fulfill the above requirements well.
Table 2.3: Main export markets of Vietnamese textiles in 2005
54.5
27.9
5.1 12.5
America
Virtue
Japan
Other
Source: Statistical Yearbook 2005 – Statistical Publishing House
1.3. Assessment of the competitiveness of Vietnamese textile and garment exporting enterprises
For textile and garment exporting enterprises, competitiveness depends on factors such as product price, quality, product design; human resources, the enterprise's ability to supply raw materials, machinery, technology; product brand... It can be said that Vietnamese textile and garment exporting enterprises have increased investment in machinery, equipment, human resources, raw materials... so the product structure is increasingly diverse, product quality is improved, and the consumption market is expanded. Thanks to that, the competitiveness of these enterprises has been raised compared to before.
1.3.1. Product quality
Along with effective investment in all fields, the quality of Vietnam's exported textile products has been significantly improved. In the yarn production stage, the proportion of cotton-polyester products with different ratios of 50/50, 65/35, 85/17 has increased rapidly; 100% polyester fibers have also begun to be produced, cotton/visco, cotton/acrylic, wool/acrylic fibers have begun to be introduced to the market. In the weaving stage, many new, high-quality woven products have been produced such as 100% cotton fibers, thick cotton fibers with enhanced mercerizing technology, and the products of the garment industry are increasingly diverse and abundant. The improved quality of products has led to increasingly strong consumption of products in world markets.
However, in general, the quality of Vietnam's textile and garment export products is assessed as uneven. Most of the export products are often processed for foreign countries (accounting for 70% of export products), which means they are made according to the designs and quality requirements of foreign partners. Among the directly exported products, most of them are products that meet the market segment with "popular" needs, average quality requirements, low prices, only a few products meet the standards to meet the market segments with high quality needs. Compared to many countries in the region and in the world, the quality of Vietnamese textile and garment products is still low.
1.3.2. Product structure
Vietnamese textile and garment exporting enterprises have produced more products. The textile industry has produced items that were previously unproduced with high quality such as 100% cotton yarn and Peco yarn (cotton blended with polyester); 100% polyester yarn for knitted fabrics, woven fabrics, cotton towels produced with Ne index: 10-20-30-40-45-60; high quality combed 100% cotton yarn with Ne index: 50-70, Peco blended yarn (polyester blended with cotton with ratios of 45/55, 65/35, 83/17) to produce single-color kate, vertical plaid, and fly fabrics from single yarn 76 or 76/2. In addition, businesses can also produce Cotton/Visco, Cotton/Acrylic, Line 1 fibers. The structure of garment products has changed greatly, from only producing protective clothing, home clothes, school uniforms to now Vietnamese garment companies have produced quality products that meet the demanding requirements of the importers' market such as: sportswear, jeans, jackets.
Besides these results, the structure of our textile and garment exports is still "narrow", the products are not diversified in types, not suitable for fashion; the main export products are concentrated in some traditional items such as jackets, shirts, trousers, and workwear. The ability to innovate products and create new products is still slow, so the ability to compete to expand the market is still limited. For products with high technical requirements, few Vietnamese export enterprises can do it, not meeting the requirements of some demanding markets.
Currently, Vietnamese textile enterprises have not invested deeply in researching consumer tastes and needs in terms of designs. In general, the cost of researching and innovating product designs and models is still low, and many enterprises do not spend money on researching designs. They sell their available products to the market, not the products that the market needs. The design staff generally has not received basic training, so they have not been able to create many designs that suit consumer tastes. Meanwhile, products of competitors with rich designs have partly satisfied the needs of consumers, especially young people. In the future, export enterprises