Garment industry poised for transformation amid global shifts

The 22nd edition of the Vietnam International Textile and Garment Exhibition was held at the Saigon Exhibition and Convention Centre on September 27.

The event showcased nearly 400 exhibitors from 12 countries and regions, including four featured pavilions from India, South Korea, China, and Taiwan. The exhibition focused on factory digitalisation, aiming to propel Vietnam’s textile industry towards Industry 4.0 and facilitate its digital transformation.

A full-day executive seminar on elevating industry value through the high-impact fabric supply chain, organised by CCX Partners and Chanchao International, marked a significant event during the exhibition.

Held on the exhibition floor, where over 500 global exhibitors showcased their innovations, the seminar attracted more than 30 VIPs and industry leaders from companies such as VF Corporation, PVH, Decathlon, and Adidas, as well as local manufacturers like Yodi, Thai Tuan, Viet Thang, SAITEX, VINATEX, and Tan Hiep Thanh Textile.

The seminar commenced with a keynote address by Shafiar Rana, manager of Global Factory Compliance Standards and Strategy at VF Corporation. With over a decade of experience in the global garment industry, Rana provided analysis of Vietnam’s position in the market, highlighting the critical challenges that must be addressed for the sector to achieve more inclusive and sustainable growth.

“Companies in Vietnam is now facing a race in digital transformation and pursuing sustainable development, with innovative solutions needed,” Rana said.

Shafiar Rana, manager of Global Factory Compliance Standards and Strategy at VF Corporation provides an analysis on the Vietnamese garment and textile industry

Following the keynote, a panel discussion moderated by Ralf Wasmuth, senior consultant at ARC Consulting, featured insights from industry experts, including Daniel Chan, founder and CEO of Intereras; Tri Tran, former manager at Decathlon Vietnam; and Giang Nguyen, country brand manager at DETERMINANT of Tessellation Group.

The panel explored strategies for navigating the evolving global textile landscape, emphasising the importance of adapting to stringent compliance requirements as a strategic advantage for integration with key markets like the United States and the European Union.

International panellists showcasing Vietnam’s key position in the global value chain

Panellists addressed Vietnam’s current dependency on imported materials, noting that over 80 per cent of the sector’s raw materials are sourced externally. This reliance, coupled with geopolitical disruptions affecting the supply of essential materials, underscores the need for the Vietnamese textile industry to develop a more resilient, localised supply chain.

Experts also highlighted the necessity for Vietnamese producers to adopt flexible, innovative approaches to meet the evolving demands of international clients, thereby enhancing their competitiveness and value in the global market.

Audience of industry practitioners from a dozen countries

The seminar concluded with a networking session, enabling participants to connect and explore collaboration opportunities. Discussions throughout the day highlighted both the challenges and the immense potential for growth and transformation within Vietnam’s textile and garment sector.

By focusing on sustainable development and higher value-added activities, the industry is well-positioned to capitalise on global shifts and continue contributing significantly to Vietnam’s economic prosperity, experts say.

Phuong Nguyen, a representative from CCX Partners, stated, “Chanchao International and CCX Partners aim to create an integrated platform for foreign investors and manufacturers to understand, connect, and succeed in the Vietnamese market through these thought leadership seminars. We want to provide trusted and industry-relevant insights right on the exhibition floor.”

The event demonstrated the collective commitment of both local and international stakeholders to drive the sector forward, ensuring its continued success and integration into the global textile supply chain while aligning with Vietnam’s sustainable development goals in the garment sector.

Vietnam’s garment industry, one of the top three exporters in the global market, is a cornerstone of the country’s economic prosperity, contributing 15-20 per cent of total exports and providing over three million jobs. As global apparel market demand rebounds post-pandemic, the industry stands at a pivotal juncture.

According to Mordor Intelligence, the global apparel market, valued at approximately $1.5 trillion in 2021, is projected to grow at a compound annual growth rate of 5.5 per cent from 2022 to 2027. This robust growth, coupled with shifts in global supply chains due to ongoing geopolitical tensions, positions Vietnam to seize significant opportunities.

The Vietnamese garment sector has the potential not only to elevate itself into higher value-added activities but also to foster sustainable development and inclusivity within the nation’s economic, social, and governmental frameworks, the exhibition heard. Embracing this moment could transform the industry into a leading player in the global textile supply chain, promoting long-term resilience and innovation.

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