HANOI: Several domestic garment and textile companies would face more challenges from large rivals following integration, said Tran Quang Nghi, chairman of the National Garment and Textile Group (Vinatex).
Nghi, speaking at a conference entitled “Garment and Textile – Opportunities and Challenges”, focusing on integration and held in Ha Noi yesterday, that a shortage of capital and backwards technology, along with weak management capacities, had created difficulties for the businesses.
He added that the development of Viet Nam’s garment and textile industry was behind other countries. ‘This caused considerable competitive pressures in the local garment and textile industry after Viet Nam joins the free trade agreements,” Nghi added. Viet Nam has some 5,000 businesses in the sector. Most of them are small- and medium sized enterprises with weak associations.
Echoing Nghi, Truong Thi Thanh Ha, general director of Dong Xuan Knitting Company, said their technology remained backwards, as several machines were purchased 20 years ago.
Of note, domestic garment and textile companies have not been able to invest in modern technology lines to enjoy benefits from the FTA, especially FTA Viet Nam-EU and Trans-Pacific Partnership (PPP).
Ha said domestic firms had been faced with more challenges than opportunities. This was the reason that the Government should provide supports for businesses, in terms of land rental and taxes.
