Textile industry movement in Nghe An

• April 7, 2016 06:54

(Baonghean) - Nghe An's textile and garment industry is making progress with over 15 textile and garment enterprises currently operating, creating jobs for about 15,000 workers.

Growth from export turnover

These are Prex Vinh Company Limited, investing more than 10 million USD, attracting more than 3,000 workers in Do Luong district; the export garment project of Seoha Brand Networks Inc - Korea, investing more than 100 billion VND in Dien Thap industrial cluster (Dien Chau), with a capacity of 10 million products/year; the textile industrial cluster project of Haivina Kim Lien Company Limited - an enterprise of Hyunjin Group - Korea, built on an area of nearly 5 hectares, with a scale of 3 production workshops, over 3,000m2 wide, modern production lines, equipment and machinery, total investment of more than 110 billion VND, 100% foreign capital...

Kim ngạch xuất khẩu hàng dệt may Nghệ An. Đồ họa: HỒNG TOẠI

Nghe An textile and garment export turnover. Graphics: Hong Toai

Besides foreign enterprises, domestic textile and garment enterprises have also chosen Nghe An as their destination, such as: Khai Hoan Export Embroidery and Garment Company Limited (Anh Son district); Nam Dan Hanosimex Textile and Garment Cluster Project, and currently, Vietnam Textile and Garment Group is also investing in 2 factories in Quynh Luu, Hoang Mai... In addition, a number of garment factories are continuing to be built in Hoang Mai, Quynh Luu, Thanh Chuong.

In recent times, Nghe An textile and garment products have made great strides, promoting the advantage of local labor resources, creating jobs for workers, and accelerating export turnover. The highest export turnover of textile and garment products was only 3.9 million USD/year (in 2007 it was 3.3 million USD, in 2008 it was 3.9 million USD, in 2009 it was only 0.2 million USD and in 2010 it was 3.1 million USD), then in 2015 it actually reached 90 million USD, accounting for 19% of the total export turnover of goods in the province (while according to the textile and garment development project, the target by 2015 is that textile and garment exports will reach 16 - 20 million USD, accounting for about 5.3 - 6% of the total export turnover of goods in the province).

Sản xuất tại Công ty Cp dệt may Hoàng Thị Loan

Produced at Hoang Thi Loan Textile Joint Stock Company

Export turnover in the first quarter of 2016 reached over 15 million USD; some enterprises achieved good turnover such as Hoang Thi Loan Textile Joint Stock Company reached 4.5 million USD (in the first quarter of 2015 it was 3.2 million USD), Prex Vinh Company Limited reached 7.9 million USD (in the same period 5.8 million USD). The products of these enterprises are present in many markets of countries such as: China, Germany, Egypt, the United States, Korea, Japan, etc.

Mr. Nguyen To Canh - Director of Hoang Thi Loan Textile Joint Stock Company said that in the first quarter of 2016, there were more orders and better payment. Thanks to that, export turnover grew quite well, reaching 4.5 million USD, up 38% over the same period. Many shipments of the enterprise were exported to Egypt, Korea, China, Malaysia, Taiwan. With this momentum, we expect to exceed the target of 17 million USD in turnover this year. Currently, the enterprise is one of the top units with large export turnover in the province and is also the main unit of Hanoi Textile Joint Stock Corporation (Hanosimex).

Need to pay attention to synchronous investment

According to Mr. Nguyen Van The - Head of Industrial Management Department (Department of Industry and Trade), one of the guiding viewpoints is to promote export development on the basis of fully exploiting comparative advantages and competitive advantages, contributing to GDP growth, accelerating the speed of economic restructuring, and developing production.

To achieve the above objectives, investment promotion and trade promotion activities are organized and implemented synchronously along with the dissemination of investment incentive mechanisms and policies. Textile and garment companies in the province have created jobs for about 15,000 workers, many of whom are directly involved in import and export activities, while the remaining enterprises perform subcontracting for export enterprises or perform under contracts of the parent company.

Dây chuyền đóng gói sản phẩm tại Công ty may Lan Anh (TP. Vinh).

Product packaging line at Lan Anh Garment Company (Vinh City).

In Yen Thanh, after MLB Tenergy Co., Ltd. began to research and invest in building a factory in 2012 (the second factory this company built in Vietnam), there are now more private garment establishments springing up as satellites for businesses in the area. Yen Thanh rice land has broken the monoculture of agriculture and is undergoing changes in economic restructuring.

However, except for some foreign enterprises, the majority of the establishments are subcontractors or subcontractors for parent companies, so the design and model creation work is not given much attention. Some small establishments are satellites for large enterprises such as Prex Vinh. Supporting industries are also not available, from buttons, needles, threads, etc., all must be imported from other places. Therefore, from mainly processing for domestic and foreign enterprises, enterprises need to improve their capacity to gradually switch to implementing outright purchase and sale contracts to increase export turnover and profits.

“In the context of fierce competition, and the wave of investment in the textile industry from Korean and Japanese investors, domestic and provincial textile enterprises are required to reorganize production, increase investment in technological innovation, apply advanced management methods to increase both quantity, quality, design and product variety. Along with that, human resource training is needed from improving skills for workers, design work, marketing staff, import and export to diversify business methods” - Mr. Nguyen Van The emphasized.

In addition, local authorities and investors need to pay more attention to social security issues. With textiles, the investment rate per worker is low, estimated at about 30 - 40 million VND/person, with simple technological lines and assembly equipment; so many investors are currently choosing rural areas to invest. Here, the abundant labor force is easy for investors to recruit, but they pay little attention to social security issues.

For example, in the Nam Dan textile industrial cluster, there are about 7,000 workers working at two factories, Havina and Hanosimex, but there is a lack of housing for workers. Therefore, workers mainly rent houses from people who have invested in spontaneous construction nearby. This is destroying the rural infrastructure. Kindergartens, medical stations, markets, schools, etc. have not been taken into account. Caring about stabilizing the lives of workers is also the problem of effectively retaining workers, creating sustainable development for textile and garment enterprises.

Thu Huyen