Considering that the Thailand textile sector begins from petrochemicals and extends to fashion and the Vietnam garment industry has to import 85 per cent of its raw material requirements, cooperation between the two countries could help exploit the vast ASEAN market and improve competitiveness.
This is what delegates were told at a press conference to announce the upcoming GFT, to be held in Bangkok from July 9 to 12, 2015 and will be held concurrently with the Garment Manufacturers Sourcing Expo 2015 (GMS), ASEAN's only exhibition on materials, accessories, and equipment.
Nguyen Van Tuan, deputy general secretary of the Vietnam Textile and Apparel Association said Vietnam has emerged as a production hub for garment and textile products in recent years, but the industry has had to import up to 85 per cent of raw materials needed for production.
While, Thailand's textile and garment industry has an entire supply chain, beginning from upstream to downstream, i.e. from petrochemicals to apparel manufacturing and also includes fashion design, Phasiree Orawattanasrikul, from the Thai Garment Manufacturers Association's (TGMA) said.
"Therefore, establishing fully vertical integrated-supply chain between Thailand and Vietnam is one of the big steps toward granting and sustaining our competitiveness," she said.
With increasing costs in China, many apparel and textile manufacturers have shifted their production base to ASEAN countries, including Vietnam and Vietnam has signed or is negotiating, a number of free trade agreements, which are expected to bring huge benefits to the garment and textile industry.
“However, to enjoy benefits, Vietnamese companies must meet product origin as well as yarn-forward regulations and since Thailand is not included in the TPP, Thai firms should partner Vietnamese firms to produce raw materials in Vietnam and take advantage of benefits from FTA’s signed by Vietnam,” Tuan added.
“The co-operation of the two sides would also help the industry better exploit the ASEAN market of 600 million people, when the ASEAN Economic Community becomes effective by end of 2015, since Vietnam is always looking to improve its competitiveness and achieve higher productivity,” Tuan informed.
“GFT, the most comprehensive show for garment and textile production in ASEAN, will bring opportunity for Vietnam based firms to update trends and latest technology and network across ASEAN,” said, Duangrat Udomsomporn, senior manager-portfolio, Reed Tradex Company.
Other than exhibiting technologies from around 250 brands from 25 countries, the exhibition will also host business matchmaking opportunities for ASEAN countries, which offers participants in-depth perspective on current and future trends of the textile and garment sector.
