Buy raw materials, sell finished products

Garment businesses need to change their business method from processing to purchasing raw materials and selling finished products.

Textiles and garments are Vietnam's main export products. In the context of economic integration, the textile and garment industry will have to meet extremely strict requirements on origin. However, currently, the biggest problem of Vietnamese textiles and garments in the supply chain is the supply of raw materials and accessories.

Therefore, to meet the requirements of origin, the Vietnamese textile and garment industry needs to invest in the textile and dyeing industries, as well as strengthen the linkage between the fiber, textile and garment industries, forming organic supply chains, linking supply according to the market principle from fiber - fabric - garment.

There should be preferential credit policies to purchase textile and garment materials produced in Vietnam. (Illustration photo: KT)

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MSc. Do Kim Chi, Institute of Trade Research (Ministry of Industry and Trade) said that management agencies need to coordinate with industry associations to issue policies to encourage garment enterprises to change their business methods from processing to purchasing raw materials and selling finished products.

Specifically, there should be preferential credit policies to purchase raw materials and accessories produced in Vietnam. In addition, it is necessary to stimulate investment in specialized equipment, support training of human resources in business, engineering, promotion, and direct customer development... This not only increases surplus value but also acts as a driving force for the development of supporting industries.

MSc. Do Kim Chi also pointed out that textile and garment enterprises need to learn about the content of commitments related to their products in terms of tariffs, rules of origin, technical measures and defense measures (anti-dumping, anti-subsidy).

In addition, it is necessary to assess the impact of commitments on your business operations as well as partners, competitors, etc.

In addition, the government and relevant agencies should have specific guidelines on tax, customs, and standards of FTAs ​​to help Vietnamese textile and garment enterprises take advantage of export opportunities, with tariff incentives to help textile and garment enterprises integrate successfully./.

According to VOV