Published By : 08 Oct 2015 | Published By : QYRESEARCH
Vietnam is one of the biggest exporters of apparel across the globe. The nation exported apparel valuing US$24 bn in 2014. However, to maintain this volume, it needs an investment capital of US$6.5 bn, 60% of which will be allocated for machines, stated Mr. Nguyen Van Tuan, the deputy chairperson of the Vietnam Textile and Apparel Association (Vinatas).
The country would need to invest approximately US$3.9 bn for machinery for the textile and apparel industry. The domestic mechanical engineering firms are unable to supply the advanced machinery required for large volume production.
Many textile and apparel companies in Vietnam tend to invest more on technical up-gradation. Nhat Tin’s expenditure on machines have increased by 300% this year when compared to the same period in 2014, said Mr. Nguyen Tan Thanh, the president of Nhat Tin.
At present, most of the machines utilized in the textile and apparel industry in Vietnam are imports as the locally made machines are still far from satisfying the soaring demand from this industry.
The machines imported from Europe are of the best quality for textile and apparel companies, but they also the most expensive ones. The mid-grade machines are imported from Japan, South Korea, and Taiwan. Whereas, the cheapest machines are imported from China, which are the best bet for most small-sized as well as mid-sized enterprises.
Mr. Nguyen Viet Thang, the director of Viet Tin Technology JSC affirmed that 50% of tools and machines being used in the Vietnamese textile and apparel industry are imported from China