Export Activities at Vinatex

I/ INTRODUCTION ABOUT VINATEX

FORMATION AND DEVELOPMENT

Vietnam National Textile and Garment Group, formerly known as Vietnam Textile and Garment Corporation was established on the basic of the reorganization of enterprise subordinated to the Vietnam Textile Corporation and the Union of Garment under Decision No. 53/QD-TTg dated April 29, 1995. Vietnam National Textile and Garment Group was established on the basic of the arrangement and reorganization of the Vietnam Textile and -Garment Corporation and sub-companies as approved by the Prime Minister under Decision No. 314/2005/QD-TTg dated December 02, 2005, on the same day the Parent Company - Vietnam National Textile and Garment Group was founded under Decision No. 316/2005/QD-TTg. The Prime Minister enacted Decision No. 974/QD-TTg dated June 25, 2010 on transforming the Parent Company - Vietnam National Textile and Garment Group (Vinatex) into wholly Stated-owned Company Limited.

The Prime Minister issued Decision No. 646/QD-TTg dated May 05, 2014 on approving the equitization plan of the Parent Company – Vietnam National Textile and Garment Group. Vietnam National Textile and Garment Group is one of the leading enterprises in the restructuring and equitization Stated-owned enterprise. The completion of equitization is an important turning point and an advancing impetus of Vinatex’s developing strategy. Vinatex owns VND 5,000 billion charter capital after selling 46% of capital for outside shareholders, including 2 strategic investors Vingroup and VID group.

Undergoing development phases, Vietnam National Textile and Garment Group has always been a core enterprise of Vietnam garment and textile industry with objectives including:

• Doing profitable business; preserving and developing the State capital investment in Vinatex and Vinatex’s capital investment in other enterprises; completing duties assigned by the State
• Optimizing all the Group’s operation; developing towards an economic group with high technology, modern management and high specialization; ensuring Vinatex’s reasonable structures, focusing on business, trading, import and export of fashionable textile products; forming the Spinning – Knitting – Weaving – Dyeing – Finishing – Garment making supply chain; enhancing the value-added in textile products, business efficiency and competition of Vinatex, contributing to the socio-economic development

Vision – Mission:

• To build high customer value and satisfaction by turning Vinatex to be a premier textile and garment producer which can provide full package apparel solutions, fashionable, high quality and eco-friendly products to customers.
• To obtain effective production system by continually improving management, developing skillful labor force, discovering innovative technique and delivering dynamic and professional working environment.

Corporation culture:

• Understanding assigned works
• Loving career, having enthusiastic and positive attitude towards works
• Not blaming or evading responsibilities, willing to admit faults in case of failures
• Continually learning, listening and acquiring contributions to perfect ourselves, improving the quality and work performance
• Always innovating and implementing works according to plans, seeking solutions to complete assigned duties
• Being proud of collective achievements, solidarity, cooperation and consensus for the joint objectives and duties

VINATEX’S POSITION IN TEXTILE AND GARMENT INDUSTRY

In a long period, Vietnam National Textile and Garment Group is the most competitive and a leading enterprise in Vietnam with the advantages such as economic size, extensive distribution system and complete production line. Vinatex usually reaches the top position in the textile industry and gains the huge success and growth in business activities.

Table 1: The results of manufacture and trading in 2016

(Source: Ministry of industry and trade)

In 2016, the group invested VND 5.5 trillion in 41 projects, including 17 garment projects, 9 industrial fiber manufacturing projects, 9 textile dyeing projects and 6 machinery upgrading projects. Vinatex is also a big shareholder of the top textile and garment enterprises such as May 10, Viettien Joint Stock Company, Viet Thang Corporation, Nha Be Corporation…. Especially, Vinatex plays key role in operating and defining business strategy to step up the bond between enterprises in industry. These days, Vinatex which is the most competitive and the largest group in Vietnam will mobilize $242 billion for fiber, textile and garment development to boost production in 2017.

[pic 1]

Chart 1: The market share of Vinatex according to products

(Source: Vinatex)

DEVELOPMENT ORIENTATION

The world trade is forecasted to increase at 5.9% and 6% for 2017 and 2018 respectively and will occupy 30% - 35% world’s GDP in the period 2015 – 2020. In particular, China and India are seen as countries with the highest trading growth rate (approximate 22%/year) in this period. Vietnam’s economy is also expected to maintain stable development and improve efficiency of investment. Especially, Free Trade Agreements bring many benefits for textile and garment industry such as tax incentives, growth of export scale, expansion of new market, improvement of capacity of enterprise administration, social responsibility, moving up in supply chain, sustainable development. These are opportunity for Vinatex to invest in production, enhancing capacity, completing supply chain. Currently, Vinatex has full range of necessary factors to build completed supply chain (spinning, weaving, dyeing, sewing, research and training). On the other hand, Vietnam’s textile and garment industry in general and Vinatex in particular is facing to opportunities to grow export turnover based on concluded free trade agreements.