With the textile and apparel industry world over witnessing deployment of ‘automated’ processes, termed as ‘Industry 4.0’ Revolution, Vietnam National Textile and Garment Group (Vinatex) is also gearing up to make technological advancements.
Vietnam to focus on latest technology to boost garment exports
The introduction of the latest technology is aimed at bolstering the garment industry in Vietnam and further increasing the country’s production capacity to capture the larger chunk of the global market, especially the US. According to the grapevine, the US is considering to impose Border Adjustment Tax (BAT) on products imported from China. If executed, this move would render Vietnam a competitive edge in terms of the augmentation of its exports to the US. And with plans in place to enhance the manufacturing methodologies through latest machinery, it’s expected that Vietnam will not only be able to achieve 7-8 per cent growth this year but also become a key exporter to major importers like the US.
Bangladesh to a certain extent would remain the major competitor to Vietnam as the industry in the former is also rapidly opting for the latest innovations; be it in software or hardware (textile and garment machinery).
Additionally, India is also expeditiously getting into the picture with its preferential trade policies. A short while ago, the country rolled out its latest tax reform – Goods and Services Tax (GST) that has been appreciated by eminent importers like Walmart. It is a positive indication as India also expects18 per cent growth in its apparel and textile export.
It will be an interesting fold of events to witness and measure the strategies of Vietnam in terms of modernising production process in order to stay ahead of the stiff competition from its aforementioned counterparts.