of Vietnam.
- The Mulberry Association and the Mulberry Silk Corporation need to carry out trade promotion activities so that silk products and silk products can find more attractive markets, strengthening confidence in output. for farmers.
3.2.2.3. Construction of textile and garment industrial clusters
Links between Vietnamese garment export enterprises with each other and with enterprises in the same field such as design, yarn spinning, fabric and accessory production, fashion accessory production... need to be considered and arranged. rearrange in the direction of increasing the level of closeness. Specifically, the State needs to take measures to strengthen two types of business arrangements: industrial clusters and textile cities as presented below.
Firstly, strengthen the organizational form of industrial cluster linkage
Organizing production in industrial clusters brings many benefits to organizations in particular and to the industry or country in general. If considered from the perspective of organizations participating in industrial clusters, participating in industrial clusters brings four basic benefits. First , businesses in industrial clusters have the opportunity to increase productivity by taking advantage of geographical proximity. It can be said that locating near suppliers, customers, and supporting businesses enhances the information exchange process, makes it easier to access input factors, and receive support. Support is easier due to the concentration of the size of a sector, receiving policy incentives and other advantages thanks to the large concentration of demand. All of these advantages make businesses increase their ability to produce products. Besides, the concentration of many businesses in the same field with the same business purpose also increases the competitiveness of these businesses. Second , the geographical proximity of many businesses in the same industry or field encourages creativity and innovation.
On the one hand, the fact that businesses have to rise up in competition is a driving force for them to be creative and innovative. On the other hand, due to the many advantages of being a member of an industrial cluster as described above, these businesses have more opportunities to improve than businesses that do not participate in industrial clusters [10 ]. Third , participating in an industrial cluster creates community awareness of a set of businesses in the industrial cluster. The connection of these businesses makes the community aware of them, thereby creating opportunities for cooperation because the subjects in the community always think that they are the best people in a certain field. to be able to cooperate. Fourth , participating in industrial clusters helps businesses receive policy support because high territorial concentration is always encouraged by governments to develop instead of fragmentation and disorder. on one's own.
It can be said that in summary, the relationships between organizations or businesses in the industrial cluster are the key to bringing all of the above benefits to businesses participating in the cluster. The flow of formal and informal information flows creates soft links and ultimately brings those benefits that other forms of industrial park layout cannot create. Besides, if considered from the aspect of regional management, the organization of industrial clusters also brings many benefits such as having an important impact on the formation of new businesses in related industries [10], Make better use of public resources, strengthen economic links, and in addition create good conditions for the development of urbanization and the local economy.
Learn from China's experience
According to statistics in December 2007, in China there are 108 textile and garment industrial clusters concentrated in cities. Each industrial cluster is a closed chain of links from the first to the last stage of the textile industry. Industrial clusters are organized in production and are related to each other in the form of network links (Figure 3.2). In particular, medium-sized enterprises have vertical linkages in the direction of product completion (from spinning, to weaving, to sewing, to
product distribution) and at the same time have horizontal linkages, that is, cooperative links in product design, production or distribution. Textile CNNs are mainly concentrated in the Yangtze River Delta and Pearl River Delta areas. The number of businesses in these CNNs is also very large as illustrated in the following table.
Source: 71
Figure 3.2- Illustrates the form of association of textile enterprises in the textile industrial cluster in China
Table 3.4- Number of enterprises in some textile and garment CNNs in China
Industrial cluster
Area (km2) | Number of businesses | |
Zhili | 135.8 | 5700 |
Pinghu | 500 | 1300 |
Ningbo | NA | 2000 |
Shaoxing | NA | 2500 |
Guangdong | ||
Shaxi | 55 | 1000 |
Xingtang | 85 | 2000 |
Xiqiao | 177 | 1286 |
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Source: 71
Common characteristics of industrial clusters in China. Firstly, these industrial clusters have close links with the outside through good infrastructure. For example, the textile industrial cluster in Humen town in Dongguan has developed port transportation
making trade between this town and many other areas more convenient. This is also one of the important reasons that makes this town the largest wholesale center in China. Or for example, the garment cluster in Xintang town has a developed highway and train system, making the cost of transporting products from this cluster to other locations easy. Second, industrial clusters include a closed supply chain from fiber production, weaving, sewing finished products, and finally distributing products to customers. These industrial clusters often organize wholesale markets or distribution centers to reach customers. Also through this method, businesses in textile industrial clusters in China create their own brands and enjoy high profits. Third, if industrial clusters do not set up their own trading centers, they are located next to trading and exchange centers. In China, according to statistics in December 2007, there are 252 textile and garment shopping centers with 273,137 stores. Locating businesses near these shopping centers helps businesses quickly grasp customer needs. Finally, there is a close connection between businesses in industrial clusters through marketing activities that take place on a regular basis. Product exhibition activities take place regularly in industrial clusters such as participating in forums, business tours, fashion shows, product fairs, etc. Businesses in industrial clusters also often use websites. as an effective tool to connect with customers.
In recent years, China's textile and garment industry has achieved great achievements, becoming a pillar industry of the economy, accounting for 1/5 of the world's textile and garment market share, maintaining its national position. largest exporter of textiles and garments in the world for many years. The organization of production and supply of goods according to CCN is one of the important factors that help China achieve such remarkable successes.
From the above analysis, one of the solutions to enhance the export capacity of Vietnam's garment export enterprises is to reorganize textile and garment industrial clusters. To be able to do this, the House
Countries need to pay attention to the following issues.
- The composition of businesses in a textile and garment industrial cluster needs to ensure that it includes as many links participating in product completion as possible. For example, there is a need for fashion design businesses, raw material supply businesses, garment businesses, and distribution businesses. If there are industrial clusters that do not have all the components of these links, there also needs to be a few key textile and garment industrial clusters that have all these links. The proposed model of the textile industry includes the components shown in Figure 3.3.
Textile and garment trade centers
Distribution
Product information (customer needs)
Distribution businesses
Distribution
Garment export enterprises
Provide input
Supporting businesses
Support
Support
Affiliate associations
Research organizations (schools, institutes,
..)
Source: Author's own creation
Figure 3.3- Proposed business composition of textile and garment industrial clusters in Vietnam
- Planning work needs to take into account the completion of industrial clusters. As stated above, in many cases, CCNs may not
has all the components as proposed, but at least, there needs to be some CCNs with all such components because between CCNs there is also information exchange as well as mutual trade. If a cluster is complete, it will be a good condition to create efficiency for businesses in other incomplete clusters in terms of components.
- The state needs to change the legal framework on the organization and management of industrial clusters. Textile and garment industrial clusters need to be large-scale instead of just being a collection of mainly small businesses. Thus, the concept of industrial cluster given by Decision No. 105/2009/QD-TTg may no longer be suitable for the scale of these industrial clusters.
- The state needs to have incentive policies for businesses participating in industrial clusters, such as support for premises, income tax reduction for a certain period of time... to attract businesses to industrial clusters. career. At the same time, the State needs to carry out state management of these industrial clusters to strengthen internal links to promote the effectiveness of cluster production organization.
- The state needs to have incentive policies to attract foreign investment for foreign businesses that want to invest in industrial clusters to create modern industrial clusters such as the Burlington-Phongphu Textile and Garment Industrial Complex invested in by Solutions Supply Chain City. Invested by Phong Phu Corporation and ITG Group of America.
In addition, businesses themselves participating in industrial cluster production also need to actively seek partners and create their own association activities with partners to enhance their operational efficiency.
Second, build a textile city
In addition to the form of organizing textile and garment industrial clusters as mentioned above, it is necessary to build a textile city in Vietnam to further enhance the connectivity of businesses in a region. Textile city is a model successfully developed in China, including the combination of many textile and garment industrial clusters with all the components as mentioned in the theoretical model.
idea of textile industry cluster.
3.2.2.4. Developing human resources for the garment industry
Human resources in the garment industry are currently both lacking and weak and are being affected by the trend of shifting human resources from this industry to other industries with more attractive remuneration levels. The salary for workers in the garment industry is very low, usually ranging from 1.5 to 2.5 million VND. Particularly, there are effective businesses where the salary can be up to 4 million VND/month, but the This business is not much. In the current environment of increasingly high inflation, such low wages do not ensure the maintenance of living standards for workers, especially those with families. In addition, personnel positions that are expected to be well-trained and work professionally, such as fashion design experts or sewing technical instructors, currently do not exist in Vietnam. enough personnel to fill these positions.
2008 was the year when Vietnam's garment export industry witnessed a difficult situation in recruiting and retaining workers because such low remuneration caused skilled workers to "jump" jobs. The lack of labor in the garment industry has given rise to a number of situations such as "skill bleeding", labor disputes, spontaneous strikes... Some well-trained designers work for foreign companies. , do not accept returning home to enjoy a meager labor remuneration. Many good managers move to work in other industries such as telecommunications, banking... Faced with this situation, to develop human resources for the export garment industry, the State and associations need to implement the following solutions:
- The state needs to have policies to encourage and support more investment in human resource training for the export garment industry, especially training in the fields of design, production management, and marketing to improve productivity. labor productivity and produce products with higher added value.
- Strengthen and expand the system of schools and garment training centers
to improve training effectiveness to meet the skyrocketing demand for managers and technical staff in the garment industry at present and in the future. The state should increase training and fostering of model designers by opening training classes, inviting domestic and foreign experts to teach and sending formal training abroad to have model designers. Professionals with sufficient qualifications to handle the design stage for the garment industry. Similar incentives also need to be focused on technical instructors and managers in garment enterprises. Encourage domestic training institutions to link with each other and with foreign training institutions to improve the quality of courses.
- The state needs to have policies to encourage businesses to proactively and focus on investing in skilled workers and technicians. The State encourages businesses to develop and deploy training courses for workers to improve the qualifications and skills of workers in the Vietnamese textile and garment industry in general and the export garment industry in particular.
3.2.2.5. Support the development of Vietnam's fashion industry
In recent times, Vietnam's export garment industry has mainly developed based on export processing methods, acting as a hired worker for regional firms and brokers in this market. It can be affirmed that, in the coming time, it will not be possible to develop based on cheap and skilled labor but must move to the stage of exploiting the added value in products.
One of the best ways to exploit the added value of products is to design products, build brands and organize sales and fashion services, thereby turning the textile and garment industry into an industry. True fashion industry. To develop in this direction, the State and associations need to focus on the following issues:
- The state should support initial training for domestic design experts, especially inviting world-famous design experts to Vietnam so that domestic designers can have direct access. with method