Ways must be sought to help firms join global production, supply chains: insiders

At a workshop held by the Ministry of Industry and Trade on August 11, Radek Sorcik, Senior Director Purchase & QA Knits and Denim at Germany-based Takko Fashion, said that Takko is looking forward to expanding its business, and moving operation from China to Vietnam in order to find more Vietnamese suppliers.

The company has some potential and important product groups in its development strategy such as sportswear, outdoor clothing, T-shirt, and trousers. However, these products of Vietnam are facing fierce competition from Bangladesh and China.

Therefore, if Vietnam wants to boost the export of these products, domestic enterprises must focus on investing in factories and improving fabric quality and origin, Radek Sorcik said.

The market is increasingly demanding higher legal and environmental standards, so to be eligible to participate in Takko's supply chain, Vietnamese businesses need to focus on researching and building suitable business strategies, he added.

Tran Ngoc Quan, Vietnamese Trade Counsellor in Belgium and the European Union, stated that the European Commission (EC) has just proposed an extended producer responsibility (EPR) scheme for textiles. 

Accordingly, textile manufacturers must ensure responsibility for the entire life cycle of their products, and support the sustainable management of textile waste throughout Europe.

The tight requirement will cause great pressure on Vietnamese exporters, as they are forced to prepare a circular production process, reduce waste from textiles, and use environmentally friendly and recycled materials, Quan stressed.

If these standards are met, Vietnamese products will gain a firm foothold in the European market, he added.

To support domestic firms to engage more deeply into the global production and supply chains, the 2023 Vietnam International Sourcing Expo will be organised in Ho Chi Minh City from September 13-15.

It is a reputable event that draws leading firms in various fields, including food, garment and textile, footwear, handbag, sportswear, home appliances, furniture, and supporting industries.

This year, the event expects to welcome 8,000 visitors and 200 delegations from 30 countries and territories. It has received greatest-ever interest from world leading companies.

Source: Vietnamplus