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PRIVATE SECTOR DISCUSSIONSNumber 7
VIETNAM’S GARMENT INDUSTRY:Moving Up the Value Chain
Prepared by:
Hassan Oteifa - Former Manager of the International FinanceCorporation's Textile Department
Dietmar Stiel - SECO Consulting, Germany
Roger Fielding - Geoffrey Willis & Associates, UK
Peter Davies - Fielden-Cegos, UK
Hanoi University of Technology - Vietnam (HUT)
Vietnam Chamber of Commerce and Industry (VCCI)
And by:
MPDF Staff
January 1999(Revised in March 2000)
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TABLE OF CONTENTS
ABBREVIATIONS AND ACRONYMS.....................................................................................v
PREFACE .................................................................................................................................vi
INTRODUCTION ....................................................................................................................vii
I. AN OVERVIEW: Past Success and Future Challenges...........................................................1
A. Introduction........................................................................................................................ 1
B. Mission Objectives and Field Work ...................................................................................... 3
C. Mission’s Findings .............................................................................................................. 3
D. Review of the Vietnamese Garment Market.......................................................................... 4
1. Local Markets.................................................................................................................. 4
2. Export Markets................................................................................................................ 5
3. Private Sector Weaknesses ............................................................................................... 6
II. MARKETING .......................................................................................................................7
A. Introduction........................................................................................................................ 7
1. Background..................................................................................................................... 7
2. Objectives ....................................................................................................................... 7
B. Analysis of the Vietnamese Garment Sector.......................................................................... 8
1. Local Markets.................................................................................................................. 8
2. Export Markets.............................................................................................................. 10
C. A Firm-level View ............................................................................................................ 15
1. Overview....................................................................................................................... 15
2. Management.................................................................................................................. 18
3. Marketing...................................................................................................................... 20
4. Strengths and Weaknesses .............................................................................................. 21
III. TRAINING.........................................................................................................................24
A. Introduction...................................................................................................................... 24
B. Methodology..................................................................................................................... 24
C. Findings............................................................................................................................ 25
1. Firm-level Findings ....................................................................................................... 25
2. Visits to Ministries ......................................................................................................... 27
3. Visits to Service Providers.............................................................................................. 27
D. Summing Up..................................................................................................................... 27
E. Recommendations__________________________________________________________29
1. Introduction …………………………………………………………………………………………….29
2. Productivity ………………………………………………………………………………….30
3. Profile of the Training ……………………………………………………………………….30
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4. Training Components ………………………………………………………………………..31
IV. OPERATIONS...................................................................................................................41
A. Introduction...................................................................................................................... 41
B. Purpose of survey.............................................................................................................. 41
C. Observations ..................................................................................................................... 41
D. Conclusions ...................................................................................................................... 42
V. PROFILES OF SERVICE PROVIDERS FOR GARMENT FIRMS...................................44
A. Training and Education Services........................................................................................ 44
B. Marketing Services............................................................................................................ 60
C. Production-Related Services .............................................................................................. 69
D. Design Services ................................................................................................................ 74
E. Information Services.......................................................................................................... 80
F. Advocacy Services ............................................................................................................ 85
G. Financial Services ............................................................................................................. 90
H. Research Services ............................................................................................................. 92
I. Procurement Services ......................................................................................................... 98
J. Investment Consulting Services .........................................................................................112
K. Conclusions .....................................................................................................................115
ANNEX 1: SWOT ANALYSIS OF VIETNAMESE GARMENT INDUSTRY...................... 117
ANNEX 2: AN OVERVIEW OF THE KEY PROBLEMS FACING PRIVATE GARMENTMANUFACTURERS: Fishbone Diagrams ............................................................................. 118
Diagram 1: Inefficient Production Organisation...........................................................118
Diagram 2: Inadequate Business Management Skills ...................................................119
Diagram 3: Difficulty Establishing Links with Buyers .................................................120
Diagram 4: Low Productivity of Labor Force..............................................................121
Diagram 5: Quality Problems .....................................................................................122
ANNEX 3: Statistical Overview of the Garment Industry....................................................... 123
Table 1: Number of Garment Production Units in Vietnam..........................................123
Table 2: Average Employment at Garment Production Units in Vietnam......................125
Table 3: Median Employment At Garment Production Units in Vietnam.......................127
Table 4: Number of Garment Exporters in Vietnam.....................................................127
Table 5: Volume and Value of Imported Fabrics and Exported Garments in Vietnam....129
Table 6: Garment Export Value by Country ................................................................130
Table 7: Percentage of Garment Export Value by Countries – Destinations ...................132
Table 8: Export Value of Garment by Type of Production Unit, Vietnam......................134
Table 9: Export of Garment and Textile Products to EU by Country.............................136
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ANNEX 4: Comparison between FOB and CMT Business ..................................................... 137
ANNEX 5: List of Private Sector Garment Co. with more than 100 workers ......................... 138
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ABBREVIATIONS AND ACRONYMS
AFTA Asian Free Trade AreaCAD Computer-Aided DesignCAM Computer-Aided ManufacturingCM Cut-MakeCMT Cut-Make-TrimEU European UnionFOB Free on BoardFADIN Vietnamese Fashion Design InstituteHCMC Ho Chi Minh CityHUT Hanoi University of TechnologyIFC International Finance CorporationJV Joint VentureMFA Multi-Fiber AgreementMFN Most Favored Nation Status (“norma l” trade relations with the United States)MPDF Mekong Project Development FacilityN/A Not ApplicableNAFTA North American Free Trade AgreementODA Overseas Development AssistanceOPT Outward Processing Traffic (additional quota for companies that use raw
materials imported from the EU)PDS Pattern Design SystemSME Small and Medium-Sized EnterprisesSOE State-Owned EnterpriseSWOT Strengths-Weaknesses-Opportunities-Threats analysisTQM Total Quality ManagementUK United KingdomUN United NationsUNDP United Nations Development ProgrammeUNIDO United Nations Industrial Development OrganizationUS United StatesVCCI Vietnamese Chamber of Commerce and IndustryVND Vietnamese DongWTO World Trade Organization
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PREFACE
The Mekong Project Development Facility (MPDF) is a $25 million project managed by theInternational Finance Corporation (IFC) and financed by multiple donors. The Facility isdesigned to promote the development of small and medium sized private enterprises inVietnam, Cambodia and Lao PDR. It provides assistance through two core programs:investment appraisal and promotion (Part A) and business support services (Part B).
MPDF’s Part B program is interested in providing specialized assistance to garmentmanufacturers, in part because of the large numbers of private firms already operating in thisindustry and in part because this industry offers strong growth opportunities for Vietnameseentrepreneurs. MPDF commissioned a series of studies to identify key issues facing privategarment manufacturers in Vietnam and to determine the availability of business supportservices for the garment industry.
This report is a compendium of these studies. Most are products of a diagnostic studycommissioned by MPDF and undertaken by four international garment specialists inDecember 1998. These comprise: (i) an overview of key findings; (ii) marketing issues; (iii)training issues; (iv) operations issues; and (v) profiles of service providers. Annexes contain aSWOT analysis and “fishbone” diagrams of the key problems facing private garmentmanufacturers, national statistics relating to garment exports, a chart showing the differencebetween FOB and CMT, and a list of private Vietnamese garment manufacturers.
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INTRODUCTION
The Vietnamese garment industry is at somewhat of a crossroads. Until recently, the outlookwas bright: exports had risen dramatically, quadrupling in value between 1992 and 1997, andwith the establishment of new factories, over 300,000 jobs had been created. Buyers andtrading agents were flooding in, eager to take advantage of the country’s untapped potentialand industrious workforce.
However, with hordes of manufacturers jumping on the bandwagon and establishing newfactories, and the Asian crisis setting in, the outlook has changed. Orders have been reduced,regional producers have become more competitive due to devalued currencies, and smallerprivate Vietnamese manufacturers are floundering and in many cases closing down. In anenvironment of “less honey, more flies,” questions arise as to how the industry, andparticularly private garment manufacturers, will fare in both the near and long term.
There are an estimated 250 private manufacturers and 90 state-owned enterprises producinggarments in Vietnam. The state-owned enterprises are generally better equipped than theirprivate counterparts and receive more foreign investment.1 The majority of private firmsmake garments for the CM/CMT (cut-make-trim) business. In some cases firms deal directlywith buyers/agents while in others, they rely on sub-contracts from state-owned enterprises.The CMT process adds as little as 20 percent to the value of the final product since themanufacturer/sub-contractor does not source the fabric, i.e., the agent/buyer delivers thepattern, fabric and trimmings to the local manufacturer/subcontractor who then constructs thegarment. The manufacturer or the agent then re-exports the finished product. Producinggarments for FOB (free on board) business generates significantly higher margins since themanufacturer sources the fabric him/herself and, in some cases, contributes to the patterndesign. However, due to the skills and capital required, FOB business is too risky for mostprivate Vietnamese producers to consider.
Some larger private manufacturers doing FOB business are proving successful. Their successcomes from developing strong links with buyers who provide investment, equipment, trainingand on-site assistance. They source materials through local and regional contacts and, inmany cases, generate their own designs. While their main business is export-oriented, anumber of these firms have also made inroads into the domestic garment market. Theiradvantage over their state-owned counterparts rests on their relatively low investment andgreater flexibility.
Despite some success stories, in light of the recent crisis, private manufacturers will have tomove up the value chain to ensure their survival. With the increase in price competitivenessin the region, and the impending end to European quota advantages under the Multi-FiberAgreement, product quality is becoming increasingly important.2 While Vietnamesemanufacturers are aware of this, many of them, both private and state-owned, face significantproblems in trying to move up the value chain. The most important of these problems are:
1 Precise data on the number of foreign-invested garment enterprises is not available. However, the VietnamTextile and Apparel Association (VITAS) estimate that over 25 percent of textile and garment enterprises haveforeign investment, the majority of these in the textile sector.2 The Multi-Fiber agreement is set to end in 2005.
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• a local textile industry that is not competitive (leading to a reliance on imported rawmaterials)
• an over-dependence on foreign agents (resulting in reduced profit margins and limitedknowledge about final markets and consumers)
• a shortage of skilled workers (leading to low product quality)• a dearth of practical training facilities (most training is very theoretical)• limited access to information (about local laws, suppliers, foreign markets etc.)• limited ability to access foreign markets (leading to passivity, i.e., waiting for agents/
buyers to come to them)
Private garment manufacturers face an additional set of problems by virtue of their privateownership. The most important of these are:
• an inability to access loans from banks (leading to difficulties in expanding or upgradingequipment)
• restricted access to EU quota allocations (since quota is predominantly allocated to state-owned enterprises)
• lack of experience with direct exporting (due to previous restrictions which have nowbeen lifted)
• limited access to buyer missions visiting Vietnam (since Government Ministries mainlychannel visitors to state-owned enterprises)
• few opportunities to participate in international trade fairs (since participation iscontrolled by state bodies)
These factors trap many private garment firms in a vicious circle and limit opportunities toexpand and upgrade. In this environment, employee loyalty is low and staff turnover is high(employees leave for as little as a $3 increase in their monthly salary). Thus, managers arereluctant to invest in staff training, and the trap continues. In the words of one manager, “weare on the tiger’s back and cannot get off.”
The challenge remains as to how private garment firms can move up the value chain. Themain strategy must be to capitalize on their core advantages: an industrious workforce, cheapoperating costs and greater flexibility vis-à-vis their state-owned counterparts, while alsofocusing on improving product quality, finding new markets and expanding product range,particularly into non-quota categories.
There is great potential for private garment producers to increase their profits. FOB businessincreases profit margins, but there is also an opportunity to obtain higher margins throughproducing higher value and more diversified products for the CMT business. Managers ofprivate firms are eager to upgrade the skills of their workforce and are largely aware of theirown shortcomings in management skills, including accounting, operations, marketing andhuman resource management. They are hungry for information about foreign markets and arekeen to find new customers.
In making the following information available to the public, MPDF hopes that policy makers,donors, service providers, buyers and the general public will gain insight into the issuesfacing the garment industry as a whole and private manufacturers in particular. With someassistance, the Vietnamese garment industry has greater potential to contribute to Vietnam’seconomic growth.
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I. AN OVERVIEW: PAST SUCCESS AND FUTURE CHALLENGES:Hassan Oteifa, Mission Leader And Former Manager of IFC’s Textile Department
A. Introduction
1.01 In spite of its late development compared to its Asian neighbors, the Vietnamesegarment industry has grown impressively in recent years in terms of capacity and exportearnings. It has been able to establish itself as an important vehicle for the country’sindustrial development. Garment exports grew from US$90 million in 1990 to US$1.35billion in 1997 and generated about 20 percent of the country’s total merchandise export,ranked second to oil. The industry has also played an important role in employmentgeneration; it currently employs around 300,000 workers, most of whom are women. Theabove achievements were accomplished in spite of its entry into an already crowded andhighly competitive market.
1.02 The success of the industry has been mainly due to:
• the availability of female workers with good qualities in terms of intelligence,diligence and high rates of literacy
• low labor costs at less than US cents 25 per hour (among the lowest in the region)• low investment costs due to the availability of low-rent buildings from government
agencies and access to a wide range of basic, inexpensive new equipment, as well asused equipment at opportune prices
• the important role which the regional operators play in terms of providing essentialmarketing links and of providing most, if not all, the required raw materials
• the encouragement to export in terms of market access, given by the country’s tradingpartners in the region and by the European Union (EU)
• a workable, although not ideal, system of importation of raw materials for exportprocessing and of re-export of finished goods
• the availability of relatively efficient internal transport and shipping facilities
1.03 A prior MPDF mission (April 1998) identified a number of major challenges that theindustry is facing that require serious attention to ensure the long term viability of the sector.At present, local value addition is small (estimated at about 20 percent of export value) sincethe bulk of the fabrics, accessories and trim is imported. Increasing local content requiresupgrading the relatively poor state of the domestic textile industry and addressing the lack ofbasic raw materials (natural and man-made fibers). However, this means making substantialinvestments in machinery and equipment, acquiring modern technology, and properlytraining managers, engineers, and technicians to run these facilities efficiently. This will notbe an easy target to achieve because the textile industry in the region is facing a difficult timedue to overcapacity and depressed demand and prices. However, there are a few encouragingindications that foreign and joint venture investments are finding attractive niches andestablishing themselves as credible suppliers of fabrics and accessories. It is a modest step inthe right direction as long as these suppliers can effectively compete with imports.
1.04 The garment plants visited, with few exceptions, are not efficiently run due toinadequate work space, inappropriate equipment, and lack of efficient production planningand control. These problems are caused by a shortage of skilled technicians, supervisors,quality controllers and the absence of organized operators’ training. Labor productivity islow, estimated at 50 percent of similar Chinese operations, and this erodes the country’s
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advantage of low labor wages. Lack of product specialization, particularly among the smallproducers, is seen as an important factor that makes it difficult to address the abovedeficiencies.
1.05 There is an over-dependence on foreign agents for getting orders and for theprocurement of raw materials. Direct contacts with customers are very weak and,accordingly, there is little knowledge of the markets where products are consumed and of themarketing channels themselves.
1.06 The importance of addressing the above challenges now lies in the fact that theindustry will have to compete in a global environment when the quota system administeredunder the Multi-Fiber Agreement ends in 2005. At that time, quota availability will no longerplay a factor in where orders are placed. Competition will intensify and will be based onother factors such as market access, production cost, product quality, quick response,reliability of delivery and a hospitable domestic economic environment. If thecompetitiveness and marketing issues are properly addressed, they would yield quickerresults, which ought to encourage investments in the textile sector.
1.07 A recently published review carried out for UNIDO on Vietnam’s industrialcompetitiveness discussed the textile and garment industry among other industrial sectors.3 Itemphasized the need to address the issues raised above, among other important policy issues.While state-owned enterprises (SOEs) in the garment sector benefit from the services givenby a variety of government-supported organizations, particularly in the marketing andtraining areas, the private sector, which only developed in recent years, does not enjoy similarsupport. The existing garment industry association, which looks after the interests of theprivate sector, in its present organizational and financial capacity, seems incapable ofproviding the necessary support for the private sector.
1.08 The economic crisis in Asia has shown that the private garment sector is morevulnerable to market downturn. Orders and quotas are channeled to the SOEs through theexisting government-supported institutions. The small and less organized private garmentunits that in the past depended on doing commission work for overburdened SOEs were hithardest. As export orders declined, they were left behind, unable to secure new orders andincapable, without institutional support, of directing their sales to other markets. MPDF'sproposed initiative to support private garment manufacturers comes at an important time forthe industry.
3 "Vietnam's textile and garment industry: Notable achievements, future challenges:" Hal Hill, AustralianNational University, July 1998 - prepared for UNIDO & Ministry of Planning and Investment, Hanoi.
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B. Mission Objectives and Field Work
1.09 The main objective of this mission was to investigate in detail the non-investmentdifficulties (operational and marketing) faced by the private garment sector, determine thescope and priorities of support needed, and recommend to MPDF the most appropriate waysof providing such support. It also included the development of a rough estimate of theimplementation costs associated with this support.4 The mission included specialists inmarketing: Mr. Dietmar Stiel of SECO, Germany, in garment technology: Mr. Peter Daviesof Fielden-Cegos, UK, in training: Mr. Roger Fielding of Geoffrey Willis, UK, and Mr.Hassan Oteifa, Former Textile Unit Manager of IFC who was the mission leader and whowas involved in MPDF’s prior mission. Over 40 garment plants were visited, and emphasiswas placed on medium and “not too small” garment enterprises with installed capacities ofroughly 100 to 500 sewing machines. Visits and interviews were also carried out withconcerned government agencies, educational and training institutions, trade associations,buyers and retailers, machinery and service suppliers, and consulting firms. A “town hall”meeting was organized in Ho Chi Minh City (HCMC) where garment operators discussedmarketing issues and identified factors that the industry perceives to be critical to improvingits performance.
1.10 The mission benefited greatly from the preparation work commissioned by MPDFand carried out by the faculty of Textile-Garment Fashion Department at the HanoiUniversity of Technology (HUT), who accompanied the mission during its field work, andalso from the contribution of the Vietnam Chamber of Commerce and Industry. 5 The activeparticipation of MPDF staff was outstanding and was highly regarded by all members of themission. Prior to its departure, the mission made a presentation of its findings andrecommendations to the senior managers and involved staff of MPDF and received usefulfeedback during subsequent discussions. The meeting was also attended by the participatingstaff of HUT who added a useful local view to the discussions.
C. Mission’s Findings
1.11 As is noted above, over 40 garment plants were visited by different members of themission who shared their observations with each other on a daily basis. The plants visitedhave different installed capacities and produce different types of garments for both the exportand the domestic markets. Most of them were located in HCMC, Hanoi, and Haiphong, thekey garment manufacturing centers in the Vietnam.
1.12 In assessing the operations of each plant, the following points were examined anddiscussed with each plant’s management:
• production buildings and service facilities• process flow and machinery and equipment layout• types, sources, and conditions of installed machinery and equipment• methods of manufacture, pace and level of productivity• personnel attitude and commitment• level of middle management skills• general overview of other supporting departments
4 Some recommendations and all implementation costs are not included in this report. For further details, pleasecontact MPDF directly.5 Both reports are included herewith
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• general working conditions including health and safety
1.13 It was generally observed that in almost all the plants visited, floor layout was verycongested and the working conditions were poor. Installed machinery and equipment wereinvariably very basic with little attention paid to attachments or simple additions to improvethe method of work. There is little use of semi-automatic machines for critical operations toensure good and consistent quality. There is also an obvious lack of garment technologytechniques and trained management: both are essential for achieving high levels ofproductivity, product quality and cost reduction.
1.14 To protect and enhance the industry’s position in the highly competitive and globalgarment market the above deficiencies need to be addressed. Two options were considered.The first is to invest in high-technology machinery and equipment, which would provide highoutputs at the consistent and increasingly stringent quality requirements with less labor input.However, this option will require extensive capital investment which is neither affordable noreasily available, particularly for the small and medium private garment manufacturers. Use ofhigh technology will require a much higher level of skilled managers, engineers andtechnicians who will have to be properly trained in equipment installation. This is obviouslynot an easy task to achieve considering the previously mentioned observations on theperformance of the sector. Furthermore, loss of many jobs as a result of this approach wouldnot be socially acceptable and the substitute of cheap labor by expensive capital may not beeconomically justifiable under local conditions, particularly for the targeted segment of thesector.
1.15 The other option is to gradually upgrade machinery and equipment and improve theskills of the operating personnel (including management) through training. This would allowthe industry to reorganize itself over a longer period of time with reasonable and affordablecapital investment without major disruptions to the work force. For instance, changes frombasic sewing machines to upgraded models with top and bottom thread trimmers and needlepositioners could initially be made for critical operations to improve stitch presentation andeliminate hand trimming of sewing threads which can damage the garment. This relativelymodest investment would result in improvements that can be quickly achieved and can beeasily quantified. The gradual approach would allow time for training and retraining ofoperators and other personnel in new skills which would allow for better choice of physicalinvestment and more efficient utilization of resources. In other words, training should comeahead of investment to maximize its benefits.
D. Review of the Vietnamese Garment Market
1. Local Markets
1.16 It is estimated that 70-75 percent of domestic consumption is met by local production.The remaining part represents “grey” imports from China, imported garments from HongKong, Korea and Taiwan, garments made from imported fabrics for the “cut-make-trim”business, and used clothing. The bulk of local production is very basic and is produced bymade-to-measure small producers, so-called “home industry sites.” As the retail industry isnot well developed, many of these small manufacturers set up their own outlets. The nature ofthe business and the associated difficulties in collection discourages professional garmentmaking companies from becoming major suppliers. It appears that for MPDF’s targeted
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segment of the private sector, the medium and “not-too-small” companies, the local market isnot a critical one.
1.17 Imported garments in the local market are mostly Chinese-made, low price productsspecifically made for the regional markets. These imports enter the country as “grey”imports, i.e., without paying duty. These products are handled by a very large number ofsmall traders, which makes it difficult to assess.
1.18 The marketing consultant’s review indicates that price and design are the mostimportant factors for the local consumer. Quality, availability, and brand name are of lessimportance due to the low purchasing power of the majority of the population.
2. Export Markets
1.19 The export business however, is dominated by commission garmenting or so-called“CMT” (cut-make-trim) mainly for the EU and Japan. This business is chiefly controlled byHong Kong, South Korea, and Taiwan-based companies which use Vietnam as asubcontracting base. They provide all fabrics, accessories, and patterns, and the final buyersare mostly the EU or other Western countries. The larger Japanese companies usually havetheir own buying agencies in the country.
1.20 The CMT business is characterized by strong dependence on the buyer and the factthat it is a low value-added activity. During interviews with Vietnamese government agenciesand garment producers, they often emphasized the objectives of reducing such dependenceand increasing local content by using locally made fabrics. However, this is not feasible atpresent due the inability of the local textile industry to meet the various demands of foreignbuyers for specific fiber content, fabric construction, design, finish, quality and competitiveprices. Alternatively, the garment makers can import fabrics, but this will limit the desiredincrease in local content. FOB (free on board) business requires direct links with the finalbuyers, knowledge and experience in regional procurement of fabrics, accessories and trim,and financial resources to support this kind of business. Most of the companies visited lackthese critical factors needed for success. There are also potential risks associated with thiskind of business. Quality disputes resulting in rejection of shipments and delayed deliveryleading to cancellation of orders or the imposition of penalties can be very costly. This mayexplain the reluctance of even some the larger companies to seek FOB exports. However,there are a few cases where joint venture or know-how agreements allowed companies tosuccessfully increase the share of the FOB business in their exports. During the field visits, alarge number of private garment makers expressed their willingness to take the risksassociated with FOB exports and are seeking support to improve and expand their marketingefforts.
1.21 Vietnamese garments are mostly exported to two markets: the EU and Japan, atroughly 40 percent each. Other markets represent less than 15 percent of total exports, so it isclearly important for the country to diversify its export markets. The US market is notattractive at this time since Vietnamese exports do not yet enjoy the “Normal TradeRelations” status (formerly “most favored nation” status). Other markets in southern Africa,the Gulf States and in Latin America could be explored, but professional guidance would berequired to penetrate these markets and such services are costly for individual companies. Asa group undertaking, however, such an intervention might be economically feasible,particularly with outside assistance. It should also be noted that the industry needs to be able
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to offer a wider range of products. At present, its focus is on a limited number of standarditems (jackets, trousers, blouses, and skirts), and in order to expand, the industry muststrengthen its garment design and pattern making capabilities.
1.22 The Asian crisis demonstrated the risk of dependence on a few markets. As theJapanese market, which accounted for over 40 percent of Vietnamese garment exports,became depressed and as quota restrictions were increased on exports to the EU, garmentmakers, particularly the less organized small units, were left without orders. Out of a reportednumber of about 150 professional private companies, only a small number are directlyexporting. The rest are operating as subcontractors for the larger state-owned or privatecompanies. This reflects the serious dependence of the private garment makers on others fororders. Some of the companies also expressed dissatisfaction with the quota allocation. TheUNIDO study suggested that a professional quota management system will be of highimportance for the country’s garment exports. Recently a step towards quota reform wastaken allowing the public sale of part of the quotas for the EU market; however, since only 3percent of the total quota is affected, the impact of the reform will be limited.
3. Private Sector Weaknesses
1.23 The above review of the situation in the garment industry points out the followingmarket-related weaknesses:
• Lack of marketing and sales know-how about international markets, submarkets, andspecific requirements of potential clients. There is no professional distribution systemor representation of the private sector in the key export markets or potential markets.Contacts are often made with state-owned companies or regional agencies for thelarge buyers and production consists of basic or standard products focusing only onthe lowest possible price.
• The industry’s competitive disadvantages vis-à-vis other regional competitors due tolocal garment makers’ inability to locally source fabrics of the required specificationsat competitive prices. These disadvantages also include lengthy delivery time, lack ofmaterials procurement know-how from Asian countries, and a shortage of qualifiedmanagement and staff,
• The unfavorable image of Vietnamese garment manufactures who are associated withcheap products and low quality standards, as well as the country’s small share of theglobal market.
• The lack of a strong professional association which can support the private sector inaccessing orders, quotas, and in addressing local issues which influence theiroperations.
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II. MARKETING: Dietmar Stiel, SECO, Germany
A. Introduction
1. Background
2.01 According to Vietnamese ministries, companies, associations, organisations, MPDF,and sector experts, the garment industry has grown stable over the past decades.
2.02 Since the competitiveness of the garment industry is still strong due to low productioncosts and high efficiency, MPDF intends to support privately-owned companies to increase ormaintain their export performance at current levels, help them move up the value chain, andfurther increase their exports to the EU and international markets.
2.03 UNIDO’s study showed that companies have little knowledge of product upgrading orinternational markets and often do not have sufficient marketing and management skills toovercome their current position as subcontrators or increase their competitiveness as FOBsuppliers. Furthermore, structural problems like lack of access to the US market and EUquotas are hampering export growth.
2.04 MPDF invited a team of experts to Vietnam to assess its target group, private garmentmanufacturers. One of them was Mr. Stiel, an international marketing and managementconsultant specializing in the textile and garment industry who has experience in theVietnamese garment sector. He was asked to carry out a market study on the Vietnameseprivate garment industry and its markets, the results of which are summarized below.
2. Objectives
2.05 The goals of the study were the following:
• Analyze the Vietnamese garment industry, its market situation and the potentialfor garment companies in local and export markets
• Assess the strengths and weaknesses of private export companies and offerpractical recommendations aimed at improving competitiveness, increasing value-added, and stimulating the export performance of Vietnamese private garmentcompanies6
2.06 Based on the terms of reference and various meetings with MPDF the market studyemployed the following approach:
• Field research/ primary data– Qualitative interviews with selected experts from the Vietnamese garment
industry, traders, and managers of private garment companies (approximately17 companies)
– Meetings with foreign buyers and purchasing offices (5 meetings)
6 Recommendations are not included here. For further information, please contact MPDF directly.
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– Qualitative interviews with experts from textile and garment associations,governmental organizations, institutions, training centers and officials(approximately 15 meetings)
– Survey of retail structure and final consumer behavior according to marketsegments in Vietnam (approximately 8 meetings and 12 interviews)
– Workshop with private companies, institutions and branch experts (12participants)
– A combination of desk and field research by the consultant drawing uponmarket information gained through 3 years of work in Vietnam
• Desk research– Statistical data supplied by MPDF, from EU and international sources, and
Vietnamese statistics departments– Data and information from international and national sources– Analysis of the existing market supplied by MPDF– Existing data and information from the SECO office
B. Analysis of the Vietnamese Garment Sector
1. Local Markets
2.07 According to market interviews, local manufacturing sites supply about 70-75 percentof the local market, approximately 10-15 percent of all imports are “grey imports,” mainlyfrom China, compared to approximately 5 percent for legally imported garments fromHongkong, Korea, EU/ US or Singapore. Further, approximately 5-10 percent of the marketis supplied by second-hand clothing which comes to Vietnam via aid projects or as smuggledgoods from China. The remaining 10-15 percent are products made for the export CMTbusiness but sold in the local market.
Source: SECO Market Survey 1998
Figure 2.1 Share of local market coverage 1998
Exportmanufacturers for CMT
7.5 %
Second-handclothing
7.5 %
Legal imports5 %
Grey imports10 %
Localmanufacturers
70 %
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2.08 The local market is influenced by small local manufacturers who produce theirproducts on so-called “home industry sites,” These companies often work on a ’made tomeasure’ basis or produce small series of products according to past buyers’ requests. Thequality is very basic and only meets local consumer demands in terms of quality, fashion, andprice-value ratio.
2.09 Home industry firms usually do not have any professional accounting systems orcalculation bases. This means that depreciation of machines, financing costs or otheradditional factors are usually not calculated into the costs of their products. Companies veryoften do not pay for electricity nor do they pay minimum wages. Additionally, this type ofcompany is frequently not subject to any kind of duty, tax or social benefits.
2.10 Local manufacturers use sales agents as links between their factory and retailers whoare also responsible for collecting sales revenues. This is a major problem since the retailstructure is weak and the legal system does not support private companies and businesses.For this reason, many companies concentrate on setting up their own outlets or selling viatheir factory shops. Domestic business, however, is neither very popular nor promising forprofessional garment companies since, in the current business environment, they cannotcompete on price against “home industry sites” or “grey imports.”
2.11 Available data and statistics, especially for the local market, are weak and do notreflect all the business realities of Vietnamese imports and exports.
2.12 The local market for Vietnamese garment manufacturing companies is stronglyinfluenced by large imports of low-price products from China. These products arespecifically manufactured for export which is chiefly oriented towards the regional markets(Vietnam, Lao PDR, Cambodia etc.). They come through the border between China andVietnam, mainly as “grey imports” for which no import duties are paid. This kind ofproducts, the quality of which is mostly quite poor, are sold by importers to small retailersand street markets.
2.13 The business is very hard to survey and identify since import/ export business is in thehands of hundreds of small traders operating mainly in the unofficial/ informal sector. Importduties are based on ’good relations’ with custom officers, and the will to pay bribes and’handling fees.’
2.14 Retail is dominated by small family companies and street market stalls. The marketshare of large distribution organizations such as department stores and chain stores is atapproximately 5-10 percent, still small. From an organizational point of view, thesedistribution systems are still weak. No statistics, data or numbers are available relating to theretail structure of the local market.
2.15 Small shops very often request assignment contracts from local manufacturers, i.e.manufacturing companies receive payment after the shop owner has sold the products onbehalf of the manufacturer. This kind of contract gives 15-20 percent of the retail price to theretailer and 80-85 percent of the sales price to the manufacturer. Mark ups on products varyfrom 10-40 percent on the purchasing price.
10
2.16 According to information gathered, price and design aspects are the most importantcritical success factors for final consumers in Vietnam. Aspects like quality, availability, andbrand image are of lesser importance in the Vietnamese market since local and internationalbrand names are currently not well known.
2.17 The market is affected by the very low purchasing power of the average population,especially in rural areas. The new middle and upper classes are still very small in number, asare tourists who tend to buy garments made for export.
2. Export Markets
2.18 The following chart gives data on the property structure of Vietnamese exportcompanies.
Source: MPDF Garment Sector Study 1998 (total number:268)
2.19 CMT Production. The export business in Vietnam is dominated by assembling, so-called CMT business which is mainly exported to the EU and Japanese markets. Thisbusiness is chiefly controlled by companies from Hongkong, South Korea, and Taiwan whouse Vietnam as a subcontracting base. These companies provide all fabrics, accessories,patterns, and fashion information to the Vietnamese assembling companies which thenmanufacture on behalf of their Asian intermediaries. The final buyers are mostly EU or otherWestern companies. Larger Japanese companies have their own purchasing and handlingoffices in Vietnam.
2.20 These co-operations are realized since Vietnam offers low wages and reasonablemanufacturing quality on a subcontracting basis. Furthermore, the availability of EU quota isof high importance. This business is characterized by a strong dependency on the buyer aswell as by low prices and low added value for the Vietnamese manufacturers.
2.21 There is strong competition among Asian and Eastern European manufacturers,especially with respect to OPT (CMT) business. Since manufacturing prices are nowadays
Figure 2.2: Property Structure of Vietnamese Export Companies
Foreign Invested
28%
State-owned28%
Private Ltd/JointStock31%
Private soleproprietor
9%
Cooperatives4%
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largely similar, European companies tend to be moving their production bases from Asia toEastern Europe.
2.22 Very often the price per production minute is the most important competitive factor.The following table shows production prices for different garment manufacturing locations.
Table 2.1: Production Prices by LocationCountry Production Costs/ Min in
US $(w/out transportation costs)
Trend
Eastern EuropeSlovenia 0.15 risingSlovak Rep. 0.14 strongly risingPoland 0.15 strongly risingHungary 0.14 strongly risingBulgaria 0.10 stableRomania 0.12 risingMoldavia 0.08 stableUkraine 0.07 stableAlbania 0.06 stableBaltic countries 0.13 risingAverage 0.10AsiaChina (central/ north China) 0.09 stableHong Kong 0.19 stableThailand 0.16 risingTaiwan 0.20 strongly risingSri Lanka 0.15 risingIndia 0.12 stableIndonesia 0.10 stableBangladesh 0.08 stableVietnam 0.08 stableAverage 0.13
Source: SECO Production Costs Analysis 1998
2.23 FOB Production. Many Vietnamese manufacturers talk about setting up their ownproduct range and moving from current CMT business to FOB business. However, mostcompanies have not succeeded in moving towards this type of business. The main reason isthat they lack direct marketing links to the final buyer, and sufficient know-how with respectto where and how to purchase fabrics and accessories. A further important point is thatcompanies are not able to pre-finance fabrics on behalf of buyers. Firstly, since financingcosts are very high and secondly, since local banks are not used to giving credit for exportprocessing contracts.
2.24 Based on firm-level interviews, there was a feeling that a number of state-ownedcompanies feel quiet comfortable with existing CM/ CMT business since the risk factor ismuch lower than with FOB contracts.
2.25 As long as companies are unable to overcome these major problems, they willprobably stick to the current assembly-oriented business.
2.26 Export Performance of the Vietnamese Garment Industry. The following table showsthe exports of the Vietnamese garment industry and its major competitors.
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Table 2.2: Major Garment Export markets for Selected East Asian Countries (percent of total)USA EU Japan East Asia Other Total
Vietnam 1996 2.2 43.3 42.2 8.8 3.5 100
China 1990 11.3 10.9 48.6 49.2 14.6 1001996 12.7 10.7 32.9 30.5 13.3 100
Indonesia 1990 38.1 35.6 6.5 6.4 13.5 1001996 34.1 32.0 8.4 5.2 20.4 100
Thailand 1990 19.3 34.1 7.9 5.9 32.7 1001996 44.1 29.9 16.9 4.5 4.7 100
Source: Australian University 1998
2.27 This data also highlights the importance of Vietnam securing normal trade relations(MFN) status in the US market as quickly as possible. Larger companies should preparethemselves for this time and try to export, even with low margins, in order to capture marketshare well in advance.
2.28 Exports to the EU are hampered by EU import quotas. This situation has slowedexport development since the EU is the largest market followed by Japan. Because of Japan’scurrent weakness and Vietnam’s inability to compete in the US market due to lack of normaltrade relations, the EU will become more and more important. Moreover the EU hasincreased its quota allocation. In addition, some of the categories of quota allocations werenot entirely used up in 1998.
2.29 Trade Relations with the EU market. The following chart shows the major EU exportcountries for Vietnamese garment manufacturers. Germany is by far the most importantmarket for the Vietnamese garment industry.
Source: General Customs Office, Hanoi 1998
2.30 In reviewing Vietnam’s export performance to the EU, and its utilization of availablequota, it must be noted that, quota allocations in major categories such as Cat 4 (T-shirts) orCat 7 (blouses) have grown by over 50 percent since 1996.
Figure 2.3: Export of Garment and Textile Products to EU in 1997
Germany42.0%
France14.5%
Holland12.5%
UK9.2%
Italy6.5%
Spain6.0%
Others9.3%
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2.31 In 1998, Vietnam only used its full quota allocation in Cat 6 (men’s trousers), andonly 97.8 percent of Category 21 production was used. Other important categories like Cat 7(blouses) and Cat 27 (ladies’ shirts) were not fully used. This was for several reasons:
• Quota distribution in Vietnam is not well organized• The EU market for garments was weaker in 1998 compared to other markets• Countries like Bangladesh, which some years ago did not offer this product have
begun to also manufacture Cat 21 jackets today• Eastern European countries have developed a strong competitive edge in this and
other product categories
2.32 However, since Vietnam still sells its products via sales intermediaries, it is stillcompetitive. The table on the following page shows the quota utilization of selected Asiangarment exporters over the past few years.
2.33 EU Quota Management. A professional quota management system is essential toimproving Vietnam’s export performance to the EU. As a first step towards improved quotadistribution, the Ministry of Trade’s Auction Committee decided to organize a public sale ofpart of the 1999 export quotas to the EU market. Though this step was intended to overcomecriticism from private, foreign, and joint venture companies regarding to existing quotadistribution, less than 3 percent of quotas were made available.
2.34 Businesses wanting to take part in the auction had to pay a VND 50,000 auction feeplus an advance of VND 2 million for each category of garment that they wanted to bid for.The auction took place at the Ministry of Trade’s office in Hanoi on December 15, 1999.Quotas for the items to be sold publicly to the highest bidders included: 240,000 T-shirts (Cat4); 280,000 pairs of trousers (Cat 6); 210,000 women’s blouses (Cat 7); 25,000 women’sjackets (Cat 15); 1,4 million jackets (Cat 21); 80,000 dresses (Cat 26); 50,000 sportswear(Cat 73).
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Table 2.3: EU QUOTA SITUATION OF SELECTED ASIAN COUNTRIES (As of 13 January 1999)Category Bangladesh China India Indonesia Sri Lanka Vietnam
in mil. pieces 96 97 98 96 97 98 96 97 98 96 97 98 96 97 98 96 97 98 99*
4License 262 231 255 55 74 76 74 71 67.5 24.4 25.5 23.4 -- -- -- 4.5 4.4 6.6 0
Quota Sur Sur Sur 75 82 83 60 62 67 36.3 38 40.2 -- -- -- 4.3 4.3 6.6 6.8Percent used -- -- -- 73.08 90 91 126 112 95 67.2 67.1 58.3 -- -- -- 104.8 102 100 0
6 License 23 33 37 25 26 26.5 7.8 8.1 9.4 79 8.8 10.7 6.4 7.2 7.4 2.9 2.8 4.3 0.02Quota Sur Sur Sur 26 26 26.7 7.3 7.7 8.3 10.3 11 12 7.3 8.1 9.1 2.7 2.7 4.1 4.3Percent used -- -- -- 110 100 90.2 106.8 105.3 113.4 76.5 80 89.3 87.5 88.7 80.8 106.8 103 103.8 0.5
7 License -- -- -- 11.5 11.8 11.7 59.4 58.7 48.4 5.8 7 7.7 12 14.1 13.6 1.6 1.5 1.9 0Quota -- -- -- 11.9 12 12.2 57.2 58.9 61 7.6 8.1 8.8 11.4 12.5 14.2 1.4 1.4 2.2 2.2Percent used -- -- -- 96.6 97.9 96.1 103.7 99.7 79.3 76.4 85.8 87 105 112.3 96.2 116.2 108 88.9 0
8 License 134 125 131 17.5 16.9 15.7 60 43.7 39.6 9.7 13.2 16 7.1 5.5 3.7 6.7 8.1 9.1 0Quota Sur Sur Sur 16.7 16.9 17.2 41 42.3 44 11.9 12.8 13.9 9.3 10.3 11.6 8.3 8.4 9.6 9.9Percent used -- -- -- 104.7 99.8 91.5 124.2 103.4 90 81.2 103.6 114.9 76.3 53.7 32.3 80.8 96.3 94.9 0
16 License -- -- -- 3 3.8 4.7 -- -- -- -- -- -- -- -- -- 0.009 0.000 0.004 0Quota -- -- -- 15 15.2 15.5 -- -- -- -- -- -- -- -- -- 0.2 0.2 Sur SurPercentused
-- -- -- 20.5 25.1 30.6 -- -- -- -- -- -- -- -- -- 3.1 1 -- --
17 License -- -- -- 3.7 8.7 8.8 -- -- -- -- -- -- -- -- -- 0.02 0.02 0.06 0Quota -- -- -- 9.9 10 10.2 -- -- -- -- -- -- -- -- -- 0.2 0.2 Sur SurPercentused
-- -- -- 37.5 86.8 86.3 -- -- -- -- -- -- -- -- -- 8.2 11.8 -- --
21 License -- -- -- 14.6 16.5 14.2 -- -- -- 20.9 23.8 19.9 2.5 2.5 2.4 11.4 11.7 13.9 0Quota -- -- -- 15.4 17 17.4 -- -- -- 28.8 29.9 31.2 8.3 9.2 10.6 9.9 10.2 14.3 15Percentused
-- -- -- 95.1 95 29.4 -- -- -- 72.6 79.6 63.8 30.2 27.3 22.5 115.2 114.5 97.8 0
26 License -- -- -- 4.3 4.4 5.2 21.8 20.8 19.6 -- -- -- -- -- -- 0.6 0.4 0.5 0Quota -- -- -- 4.9 5 5.1 14.9 15.6 16.5 -- -- -- -- -- -- 0.4 0.4 0.7 0.7Percentused
-- -- -- 86.2 88 102.9 146.5 133.3 119 -- -- -- -- -- -- 128.5 90.1 79.9 0
27 License -- -- -- -- -- -- 11 10.2 11.2 -- -- -- -- -- -- 0.2 0.2 0.8 0Quota -- -- -- -- -- -- 12.8 13.4 14.2 -- -- -- -- -- -- 0.2 0.2 Sur SurPercentused
-- -- -- -- -- -- 86 76.3 78.9 -- -- -- -- -- -- 103 105 -- --
Source: German Federal Office of Economics, Eschborn 1999Cat 4 = T-Shirts (knitted/crocheted) Cat 17 = men’s jackets/blazers Cat 16 = men’s suitsCat 6 = men’s/women’s trousers (woven) Cat 21 = parkas/anoraks Sur = surveillance/no quotaCat 7 = women’s blouses Cat 26 = women’s dressesCat 8 = men’s shirts Cat 27 = Women’s skirts
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2.35 Asian Crisis. The Asian countries most affected by the crisis (South Korea, Indonesia,Japan, Malaysia, Philippines, and Thailand) represent nearly 52 percent of Vietnam’sgarment export markets. But Vietnam’s most important market is Japan with approximately42 percent share. Other markets like Taiwan or South Korea are predominantly tradingpartners rather than final consumers. Trends in trade relations with Indonesia, Malaysia,Philippines and Thailand can be characterized by a low export performance and a limitedproduct range.
2.36 The Asian crisis has had significant impacts on Vietnam’s exports, especially toJapan. The EU and Japan have always been the largest markets for the country’s exports.Since Vietnam receives relatively poor quota treatment from the EU, its firms are competingin the tough East Asian market against more established exporters like China, Indonesia,India, etc., and without the benefit of initial quota advantages for the EU market.
2.37 A number of Japanese buyers have complained about low orders from theirheadquarter offices. They face serious problems in utilizing their production capacity for thetime being and are seeking links with the EU market. As long as Japan’s economy is slow,demand for garments will also remain weak. However, Japan, as the world’s second largesteconomy, and with its track record, is and will remain, one of the most important buyers forVietnam’s garment products.
2.38 New Customers and Markets. Russia, the Baltic countries (former USSR),Yugoslavia, Poland, and the Czech Republic are the top ranking customers for Vietnam’sFOB/collection business, but garment exports decreased dramatically in 1998. Significantexport reductions to Russia, Hungary, Poland and the Baltic states were based on theeconomic problems of those regions.
2.39 In Russia, this situation is due to the devaluation of the ruble against all majorcurrencies, the strong slowdown in consumer spending, and the dependence of a number ofEastern European countries on trade with Russia. It is generally felt that these markets willbe of low importance for Vietnam until 2001.
2.40 Analysis of past and current export markets shows that a large number of markets likeSouth America, Middle East and South Africa have not yet been penetrated by Vietnameseexporters despite the fact that other strong Asian exporters, e.g. China and India, are alreadyselling quite well to these markets. Vietnamese export companies should explore thesemarkets.
C. A Firm-level View
1. Overview
2.41 The number of privately-owned professional garment companies is still relativelysmall compared to state-owned companies. According to interviews with private companiesand the Garment Association, there are approximately 150 ’professional’ private companiesactive in Vietnam, but only a small number of them are ’directly’ exporting. A large numberof the smaller companies are operating as subcontractors for state-owned or larger privatecompanies.
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2.42 Since these companies operate as subcontractors for private and state-ownedcompanies, which are already operating as subcontractors for Taiwanese or Hong Konggarment agents, the prices they can receive for their manufacturing services are extremelylow. On the other hand, price competitiveness is very high. These companies usually do nothave any kind of export experience, nor are they registered as export companies. Since theyoperate on a CM basis, they are unable to purchase fabrics and accessories and they do nothave the financing to pay for raw materials.
2.43 At the time of these interviews, companies were complaining about reduced ordersfrom their current buyers due to the Asian economic crisis, as well as slow purchasingprocedures in the EU. This situation is quite understandable since the larger companies usetheir available production capacities before giving out orders to subcontractors. These SMEcompanies and other large scale private firms are very interested in working directly with EUbuyers so they can utilize their production capacities as well as compete by offering relativelylow prices in the international market.
2.44 Quota Availability. All companies heavily complained about the current EU quotadistribution system. State-owned firms and joint ventures are granted preferable quotadistribution which means that private small and new companies do not have any access toquota. At the moment their only option is to purchase quota in auctions or to purchasedirectly from state-owned companies at inflated prices.
2.45 Market Access. Private garment exporters generally do not have direct links to foreigncompanies, especially those that do not have their own purchasing or quality control officesin Vietnam. In general, European buyers tend to operate via Asian agents from Hong Kong orKorea. The main reason for the weak export performance of private garment companies isthat they receive low prices for their subcontracting services and can only operate in the weaklocal market. A further weakness of these companies is that they are still concentrating ontraditional products like basic trousers, skirts, blouses, and jackets.
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2.46 Type of Cooperation between Garment Companies and Their Customers. Thefollowing table shows the types of cooperation between companies and buyers.
Table 2.4: Market Position of Garment CompaniesType of business Products/Services offered by
this type of businessTarget Groups in Export Markets
CM(cutting-making)
• Production(cutting, sewing etc.)
• Industry (manufacturers /converters)
• Large retailers (USA)CMT(cutting-making-trimming)
• Production• Procurement of trimmings
• Industry (converters)• Importers• Large retailers (USA)
RTU(ready-to-use)
• Production• Procurement of fabrics and
trimmings
• Industry (converters)• Importers• Large retailers
RTS(ready-to-sell)
• Product development(basic product)
• Production• Procurement
• Importers• Large retailers
Collection • Product development(product line)
• Procurement• Product marketing
• Large retailers• Chain stores / clothing multiples• Specialist retailers
2.47 The following graph shows the current situation of Vietnamese private garmentcompanies with respect to their efficiency and effectiveness.
Table 2.5: Positioning of Vietnamese Private Garment Companies
100 %
75 %
50 %
25 %
Efficiency
Effectiveness
CM CMT RTU RTS Collection LabelService
FOB Business
Fashion Business
Participation16 private garment companies1 textile company Chairmanand Vice Chairman of Garment, Textile and Embroidery Association MPDFstaff
* Evaluation based on discussionand group judgement
18
2.48 Efficiency: As a technical process, efficiency is usually measured by a percentage, i.e.how well a process/job is being realized in a company/department. Effectiveness: As a moremarket-oriented activity, effectiveness describes what kind of process/job is being done.
2.49 This graph very clearly defines that most companies (approximately 80 percent) areoperating on a CM (cut-make) basis. In this type of business, their efficiency is between 45percent and 55 percent, which means that there is still a large possibility of improving thissubcontracting process.
2.50 The remainder is subdivided into approximately 10 percent in CMT business, i.e. themanufacturers purchase some fabrics and trimmings for the buyers, and 5 percent in theready-to-use and ready-to-sell business. Based on interviews, only very few companies arecurrently doing FOB business.
2. Management
2.51 The following graph shows the current management performance of privateVietnamese garment companies broken down into different management functions.
2.52 The marketing performance is subdivided into local or export markets sincecompanies operate in both markets and their performance in these two markets is quitedifferent.
Table 2.6: Management Performance
2.53 Production. Private garment companies are quite well organized in terms of theirproduction performance. Companies have relatively good machines and equipment. Theymostly operate these machines in a professional manner. Efficiency levels in production are
100 %
75 %
50 %
25 %
Efficiency
EffectivenessProduction Logistics Admin ./
ControllingPurchasing Human
RessourcesMarketing
Evaluation*/Positioning basedon group discussionand judgement!
Exportmarket
Localmarket
19
between 40 and 60 percent which means that these companies operate their plants quitesuccessfully. Most garment companies only operate one shift, but these shifts are usuallybetween 9 and 10 working hours per day. Companies mentioned that operating a second shifttakes a lot of organizational activity and permission. Furthermore, they presently do not havesufficient orders to necessitate a second shift.
2.54 Logistics. Here they are defined as moving raw materials from buyers to factories, aswell as controlling raw materials and work flow in the factories. The logistical situation of thecompanies is relatively poor. Their performance is between 20 and 30 percent. Mostinterviewed companies confirmed that they do not have much know-how and experience toimprove the logistical situation in their companies.
2.55 Administration/Accounting. In regard to the administration and accountingdepartments, companies stated that their experience and performance is quite weak. Mostcompanies still work according to the planned economy way of cost calculation and do nothave more advanced breakeven or cost-covering margin calculation systems. This lack ofknow-how, especially in times of low occupancy in the factory, is an important weakness ofprivate companies.
2.56 Internal planning, costing, and price calculation is very weak as a result of theaforementioned points. Furthermore, it does not give enough planning security to the topmanagement to calculate their company’s overall cost, individual product price, andperformance.
2.57 Purchasing. All interviewed companies stated that their know-how in purchasingfabrics, accessories, and other types of materials for their own use and on behalf of theirbuyers is very weak. Local textile mills are not capable of producing competitive fabrics interms of price and quality. Companies do not have access to foreign raw material markets,and lack substantial links and knowledge about where and how to purchase fabrics andaccessories at international prices.
2.58 Human Resources. Most companies defined their human resource management asquite reasonable in terms of the local situation. They confirmed that workers are available forgarment manufacturing and that sufficient institutions and training schools exist where theycan send their staff for sewing training.
2.59 A very weak point is personnel for middle and top management in production as wellas in management functions (marketing, accountinging, etc.). All companies complainedabout the shortage of skilled personnel, especially for sales and marketing. Most candidateshave neither international experience nor command of foreign languages.
2.60 Marketing. Companies differentiated between local marketing and export marketingactivities. All companies confirmed that their overall marketing skills and experience are verylow. For the important EU export market, their business experience is very weak.
2.61 Firms have no direct links to foreign buyers and are very passive in their marketingactivities. The average privately-owned company has not participated in any foreign tradefairs, selling missions, promotion activities, etc. This leads to a situation where privatecompanies wait for Hong Kong or Korean agents to bring subcontracting orders to theirfactories.
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2.62 Sales skills for the local market are at a more advanced stage with an averageefficiency of 25 to 30 percent.
2.63 However, the local market is still weak and faces a lot of difficulties, especially withregard to distribution, pricing, and local retailers’ payment procedures.
3. Marketing
2.64 Since most private garment companies identified marketing and sales as a majordifficulty for their companies, ’marketing performance’ has been highlighted as one of thekey issues and analyzed accordingly. The efficiency and effectiveness model was also used toanalyze the current situation.
Table 2.7: Marketing Performance
2.65 Pricing. Based on the experience of the interviewed companies and of the consultant,the price-value ratio of Vietnamese garments is good compared to international competitors.This situation was confirmed by buyers interviewed in Vietnam as well as in the EU.
2.66 Info/Market Research. Private garment companies have no access to marketinformation, trend research, and customer data. This is mainly due to the fact that there are noexport promotion institutions, private sector institutions or other organizations which cansupply companies with this important data. All companies stated that access to informationlike lists of potential buyers and agents, data about the export potential of other countries, andall other necessary information is of high importance.
2.67 On the other side, buyers from Europe, Japan, and other countries complained aboutthe unavailability of, for instance, exporter directories or company lists relating to the
100 %
75 %
50 %
25 %
Efficiency
Effectiveness
Pricing Info/Market
Research
Productdevelop-
ment
Promotion Links tobuyers/SellingExport
On timedelivery
Evaluation /Positioning basedon group discussionand judgement!
Customerservice
C C B AAFinal ranking of
importance
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Vietnamese garment industry. Most new buyers access manufacturers through traditionalchannels like the Ministry of Industry, the Chamber of Commerce, or Vietnamese embassiesin their respective countries. This particularly hinders private garment companies since theyare basically excluded from these channels. State-controlled institutions and organizationsusually channel buyers to traditional state-owned manufacturers, thus eliminating privategarment companies completely.
2.68 Product Development. All interviewed companies stated that product development isan extremely weak point. Companies do not have access to market information, fashion news,new fashion trends, etc. Furthermore, companies lack know-how in terms of sizing tables,grading lists, and technical data for product development.
2.69 Also, personnel in charge of product development and design are very weak andinexperienced in using Western methods for product development like CAD/CAM or othermore advanced technologies. This is important since international companies communicateproduct development data via the Internet to the subcontracting manufacturer. These newtechnologies will be of future importance in helping Vietnamese firms become FOBexporters or ready-to-sell/collection businesses. Locally produced fashion designs andproducts are usually not saleable in international export markets like Japan and the EU. Sincethe fashion requirements in Eastern Europe and Russia are very different from theVietnamese market, international design is also important. Designers who participate in localfashion shows and exhibitions can not really compete in export markets, only in the domesticmarket.
2.70 Promotion. Private companies confirmed that their promotion activities are weak andneed to be improved in order to compete in international markets. Most companies do nothave company profiles, nor information about their products or services in a readily availableform for international buyers. Companies seldom participate in international and local tradefairs, and have no idea about the requirements of foreign markets. They also lack knowledgein promoting their products business to business.
2.71 Links to Buyers/Sellers. This point was identified by all companies during interviewsas well as during the workshop as the most important problem for private garment companiesin Vietnam.
2.72 The current dependency on subcontracting business from local companies as well asthe dependency on subcontracting for Taiwanese/Hong Kong/Korean agents is, according toprivate firms, their weakest point.
4. Strengths and Weaknesses
2.73 The following final analysis shows a summary of the main strengths and weaknessesof private Vietnamese garment exporters regarding marketing/sales in exportcountries/markets.
v Strengths
• Ability to supply subcontracting service at attractive prices and with good priceperformance
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- Good competitiveness versus countries who cannot work on an OPT basis only(e.g. South Korea, Taiwan, Malaysia).
- Competitive price performance compared to Asian competitors (India, China,Bangladesh, Indonesia).
• Decreasing market barriers in most of the important markets (also ’critical’categories)- Main categories of Vietnamese OPT quotas to EU are not utilized.- Currently no increase in quota restrictions for Vietnam.- Increase of quota allocation in ’critical’ categories in 1999 until 2005 and
abolition of quota and market protection due to WTO/MFA.- Relatively low quota utilization of ’uncritical items’ compared to other Asian
countries (e.g. China, Indonesia, India).
• Good experience in garment production and production know-how- Good quality of workmanship and in some specialized production processes.- Partly well equipped productions plants and factories.- Experience in cooperating with Asian customers and their market require-
ments.
• Links to new export markets via Vietnamese emigrants- Direct FOB export sales, including local product development.
v Weaknesses
• Currently low importance/significance of Vietnamese garment exports to EUcountries- Small percentage of EU garment imports are from Vietnam- Long distance and delivery periods (low flexibility) for EU market, especially
in regard to Eastern European competitors for OPT business.
• Competitive disadvantages compared to regional Asian competitors inindustrialized countries- High product costs of Vietnamese textile manufacturers.- Lengthy delivery times and to some degree problems regarding reliability of
textile deliveries, import of materials, and customs handling.- Lack of staff qualification, especially middle management.- No procurement know-how regarding fabrics, trims, yarns, etc., in regional
markets.- Slow responding process due to cooperation with Asian agents and language
problems.
• Necessity of improving overall image of Vietnamese garment manufacturers- Main image of Vietnam and its garment industry is as a ’low wage country’
with very cheap products and low quality standards.
23
- Low confidence in business reliability and delivery times.- Unavailability of material/fabrics etc. meeting international quality standards.- Difficult to deal with due to Socialist system and difficult to travel to.
• Lack of marketing and sales know-how for international markets, sub-markets,and of specific customer requirements.- No professional distribution system or representation of private Vietnamese
garment exporters in the EU, US, Asia, and new markets.- Often contacts only exist between state-owned Vietnamese exporters and/or
regional agencies (e.g. in Hong Kong) for large buyers.- Production of basic or standard products mainly focusing on the lowest
possible price.- Lack of know-how of different marketing strategies and instruments to find
new sales and potential customers/distribution channels.
• Lack of professional association or organization to represent interests.- No association exists with professional management and organizational
structure.- Foreign trade contacts and inquiries are almost always channeled to state-
owned companies.- Quota distribution only supports existing businesses and neglects newcomers.
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III. TRAINING:Roger Fielding, Geoffrey Willis and Associates, United Kingdom
A. Introduction
3.01 This report investigates the training needs of the Vietnamese garment industry. This ispart of a Garment Sector study into the support services required by the industry, in order toassist the Vietnamese manufacturers to develop their businesses and expand into new marketsfor their products.
3.02 In assessing the training needs in the garment sector, we have have considered anumber of criteria which must be met for any subsequent support to be commerciallysuccessful. These were:
• Training support should be sustainable, economical, and deliver measurableimprovements translating into increased competitiveness of the participating companies.
• Initial training should be capable of scaling up and increasing its scope.
• The focus should be on the small to medium private companies.
• Training support should be oriented toward long term activity and commitment by theindustry.
• Training results and the impact upon company results should be measurable and haveclear benefits for the industry.
• Initial work should be capable of demonstrating success quickly.
• Companies participating in the first phase should be selected for their attitude, potential,and commitment to training.
• Training courses provided should be able to deliver results and therefore be of a practicalnature, and capable of being delivered at the manufacturing level.
B. Methodology
3.03 Background. MPDF commissioned the faculty of Textile–Garment FashionDepartment at Hanoi University of Technology (HUT) to provide background data for thestudy. Analysis of the data rapidly led to the conclusion that the concentration of targetmanufacturing companies was in Ho Chi Minh City (HCMC).
3.04 Field Work. The MPDF support staff worked with Dr. Tran Nhat Chuong and Dr.Tran Thuy Binh of HUT to arrange visits to:
• 15 manufacturing facilities of which 11 were private enterprises
• 18 organizations which provide services to the industry, of which 5, were private
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• 1 joint venture
• 2 relevant government departments
C. Findings
1. Firm-level Findings
3.05 The essence of the field work was face-to-face discussions with factoryowner/managers, government officials and the principals of organisations which provideservices of potential value. During each visit it was generally possible to discuss the overallcommercial situation in which the organisation operated. Responses from the factorymanagement and observations during a walk through the manufacturing facility provide thebasis for the comments which were reported on individual sheets, but which are not includedhere for reasons of confidentiality.
3.06 Pattern Cutting and Lay Making. Since the majority of work is undertaken on a CutMake and Trim (CMT) basis, the customer normally supplies patterns (and sometimesmarkers either on paper or more recently on disc). Where no markers are provided thepatterns are traced by hand to make markers with inherent inaccuracies and limitations induplication.
3.07 There are computers available in both Hanoi and HCMC capable of handling thismechanical operation of marker making. If it were possible to encourage the establishmentof a sub-contracting operation for this computer service, there would be a huge improvementin consistency of make-up and sewing quality on offer.
3.08 There is very little evidence of the need for design input, and the teaching effortassigned to original design in the further education colleges far outweighs the industry need.
3.09 Spreading and Cutting. Spreading is most often carried out by pulling fabric off asuspended roll and onto the cutting table by hand. Even the most basic hand operatedspreading carts are the exception rather than the rule.
3.10 This sort of approach leads to low productivity and so substantial overstaffing, andcoincidentally poor material utilisation. The development of good practices in materialutilisation will be very important as companies drive towards more FOB business, but theskill of lay making can and should be introduced into the current manufacturing environmentthrough training.
3.11 Sewing. Generally untidy and poorly laid out. The progressive bundle system ispredominantly in evidence. Whilst being easy to manage at low levels of performance, it doesrely on a keen appreciation of work assessment to ensure that the individual operations areevenly balanced, otherwise bottlenecks are created within production lines which lead to lowproductivity.
3.12 Finishing and Packing. A weak area, where generally insufficient room has beenallocated to the function to allow logical and efficient work flow. Double handling leads to adeterioration of garment presentation, and since this is the first thing that the customer sees, it
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is vital to get it right first time.
3.13 Training in the Factories. In-house and separate areas designated for training were theexception rather than the rule. Liaisons with outside training establishments were surprisinglystrong, although curricula were consistently and disappointingly more theoretical thanpractical.
3.14 Limitations in the operational set up of cutting rooms, sewing room floors andfinishing sections mean that it is difficult for the current managers to benefit from theproductivity increases which derive from systematically based training programmes.
3.15 From the establishments visited where training is offered, it is vested first in thesewing machine operators and second in the cutting room. There is virtually no activity infinishing or supervisor training. The management functions of production planning andcontrol and costing are in the hands of the owner/managers and over the years have beendeveloped to suit individual situations. The reality of working in a mainly CMT environment,particularly in times of scarcity of orders, is that prices are often offered on a ’take it or leaveit’ basis, leaving the realm of the efficient costing system and entering the commercialjudgement arena.
3.16 The best served activity appears to be that of training mechanics. This is generally offsite, and worthy of particular mention as a well respected institution is Fashion II and SewingTechnical High School in Thu Duc, Ho Chi Minh City.
3.17 The major views and observations to come from the private sector and co-operativefactories were:
• 6 respondents confirmed that they attempt to hire skilled operators rather than trainthem.
• 5 respondents confirmed that technical training is bought in from colleges andoverseas.
• 3 respondents said that their factory provides training courses and charges the traineesfor participation.
• 3 respondents admitted that they do not have any training procedures• 2 respondents said that they recruit staff from vocational and district training schools
3.18 Other significant comments were:
• Supervisors are recruited from the pool of experienced sewing machinists• The major training activity is carried out ’on the job’ by fellow workers• Some factories are already paying for training either directly or indirectly and most
would pay for the installation of training techniques provided that:- the trainees signed employment contracts- there was some financial/ incentive help available
3.19 The three SOEs visited understandably had characteristics which were different fromprivate sector companies. They have benefited from significant capital expenditureprogrammes and apparently have access to sufficient quota to fill customer’s orders. Therehas been a noticeable input to technical areas, particularly from Eastern Europe. Lower leveltechnical exposure is available locally from further education establishments. There is a
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common thread of virtually no in-plant training, Garment Company 10 Training School beingthe exception.
2. Visits to Ministries
3.20 The major points passed on were:
• Government has approved a general strategy to involve 200,000 workers in thegarment industry.
• An attempt is being made to decentralise from the big cities• Government is allocating capital for garment development depending on performance• Joint ventures account for 40 percent of all exports• Firms need to understand how to move from CMT to FOB trading• Firms need to improve training and efficiency
3. Visits to Service Providers
Each visit was used to investigate the contribution which the provider might make to enhancethe development of training practices in Vietnam. During the field work it was tentativelyagreed that the private sector would probably offer the most suitable base for thisdevelopment. (For further profiles of the service providers see HUT’s study in section (V)).
3.21 State-owned Service Providers. It is very clear that the equipment being used for trainingcourses was old compared to similar equipment used in even the most humble of factories.The content of the courses is heavily weighted towards theory. The industry relies on anunderstanding of practical issues at all levels and this must be reflected in the training ofyoung managers. Worthy of particular mention is the Fadin facility in Hanoi. The design,pattern making and pattern grading skill base there is capable of development to the benefitof local manufacturers. The Fashion II and Sewing Technical High School, Thu Duc, Ho ChiMinh City has a good reputation for the training of sewing machine mechanics. HCMCUniversity of Technology School of Industrial Management offers a very real alternative as amanagement training base but needs to be further investigated.
3.22 In summary, the needs of the industry appear to be well served by the wide choice ofsubjects which are available. They include the training of machinists, middle managementskills, and fashion design. However, these courses are invariably biased toward theory andthe needs of the state owned enterprises. Generally they are not entirely suitable for smalland medium-sized privately-owned businesses.
D. Summing Up
3.23 Manufacturers have had very little formalised training (apart from ’learning on thejob’) in the areas of:
• Design, pattern making and grading• Fabric inspection• Quality control• Supervision• Production planning and control
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• Costing• Management and management techniques
3.24 Where there are formalised approaches, they involve separate training areas forprospective machinists and finishing operations. The basic principles are founded on teachingan understanding of overall garment construction with the final test being to make a singlegarment in its entirety. This approach has little relevance to the effective introduction of amachinist to a production line which relies on the efficient and repeated production ofsequential operations.
3.25 As might be expected, the teaching of design, textile technology, quality control,management techniques and sewing machine mechanics are far better served in traininginstitutions than in the manufacturing facilities. Where we saw teaching of basic productiontechniques, the equipment was old and often cannibalized. Most of the facilities have theappearance of a lack of funds, and without enhancement, this will hinder the development ofthe fledgling industry.
3.26 Even taking into account the fact that the industry is in its formative stages ofdevelopment, the training techniques which are in place will not be effective, in supportingthe push of the industry to compete in the marketplaces of the world. Whilst this is notunusual for a maturing industry, it is of considerable concern that the technical benefits whichhave flowed from joint venture liaisons in other developing countries are not yet apparent inVietnam. This suggests that a training initiative is overdue and will not be created within theindustry and so will need a kick start from outside.
3.27 Various claims have been made in respect of the number of trainees being releasedinto the industry. Within the scope of this study it has not been possible to validate theseclaims either individually or in total. This reflects the larger problem of quantifying theindustry itself. Each source we have looked at seems to indicate a different number ofemployees and varying levels of revenue.
3.28 There is a history of trainees paying for their courses. There is also evidence thatindividual companies will buy training which fits their objectives of increasing productivityand reducing costs whilst preserving flexibility.
3.29 The training framework will have to deliver results from a low productivity base. It isthe sequence of implementation which then becomes important. The first objective must beto develop the skills necessary to improve the set up and running of individual productionlines so that they match best practices. The benefits of this will be quickly realised throughtraining production line supervisors to run the units at levels of efficiency which are beingroutinely achieved elsewhere in Asia. As a parallel exercise, it will be necessary to implementtraining to improve the quality of cut work at the pre-sewing stage. Once there is anunderstanding of the benefits and operation of a well thought out strategy it will become anatural step to implement improvements in Operator Training.
3.30 There are a number of cultural issues which represent themselves in the design ofcurrent training practices:
• They are planned and presented in great detail, but they are theoretical, and theindustry is practical, depending upon manual skills to a very high degree.
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• The course content is broad and not targeted.• They suffer from lack of exposure to the best practices that are being applied
successfully elsewhere in the world.
3.31 It is therefore evident that this local approach must be given great considerationbefore embarking upon far ranging changes to the training infrastructure in the industry.However, the potential gains are great and can be accessed relatively quickly--a competitiveedge which must be turned to advantage in order to secure Vietnam’s position in the globalmarket.
3.32 General Comment. We estimate that there are significant productivity gains to bemade through basic reorganisation of production lines and appropriate training. In individualfactories this can be developed within a few months, if not weeks, by employing appropriateand directional techniques. However, this then poses the problem of how to sell the additionalproduction generated, or manage with the surplus labour!
3.33 In order for the private garment manufacturing sector to compete with other low costcountries, the efficiency of the factories has to be raised. This will improve capacities, lowerunit costs, improve quality and make Vietnam an attractive sourcing base.
3.34 The only way for the industry to reach the required competitive levels of operation isby training their people in the practical skills necessary.
3.35 To justify returns on training by individual factories would require a specific study ofeach plant. The visits carried out clearly show a need for training exemplified by the lowproductivity levels observed. Productivity is identified as the time taken to manufacturetypical garments. From our own experience of carrying out feasibility studies in Vietnam,productivity is typically felt to be 50–60 percent of what could be achieved with bettertraining and engineering.
E. Recommendations:
1. Introduction
3.36 Training for the Vietnamese Garment Industry, must be based upon effective, provenpractice. It should be a balance of knowledge and operating skills.The followingrecommendations are based upon the observations made during the field visits, and the needsof the Vietnamese Garment Industry to move from their present position to a morecompetitive one.
3.37 At present, training is carried out principally, by State Owned Enterprises, whichaddress the theory and practice of garment making. There is little experience of, andconcentration on, the commercial needs for efficient and productive manufacturing. Withother competing economies able to match and beat the low cost labor rates, it is imperativethat the Vietnamese garment industry compete by increasing efficiencies and lowering unitcosts thereby.
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3.38 It is only by training the industry’s personnel to analyse their operations and have theskills to improve them, that Vietnam can hope to compete with its rivals in the developingeconomies.
2. Productivity
3.39 Throughout the following recommendations for training, “productivity” is a widelyused justification for providing better training for the industry. Although it is expressed asthe making time per garment, this measure of productivity combines a number of operatingelements which are essential to the commercial success of the garment manufacturingcompany, and are included in the following recommendations:
• The improvement in cutting , sewing, and finishing methods, seeks to reduce thenon-productive work. In a typical sewing operation up to 80% of the operationcycle is handling of the material to and from the needle.(Production engineeringtraining)
• The way in which the garments are passed from operation to operation and thelayout of the plant, can reduce this wasted non-productive time. (Productionengineering and supervisor training)
• The less work in process and organisation of sequencing, the quicker throughputtime, and improved response time. Thus enabling Vietnamese companies tocompete with other developing economies who may be closer to key markets.(Production Control, supervisor, and production management training)
• Training in improved operating techniques improves the quality of work. A morehighly skilled workforce able to be more flexible and productive, are moreequipped to meet customer quality requirements and expectations. In a fashionbased industry this is a pre-requisite if a garment company wants to takeadvantage of the markets demands, which are ever changing.
• The effect of better quality of work means fewer repairs during the manufacturingprocess. From experience a typical repair will take three to four times as long tocomplete, than getting it right first time. A significant impact upon productivity.(All components of training but particularly quality assurance, cutting, productionengineering, operator and supervisor training)
It is with these factors in mind that the following recommendations are madespecifically for the Vietnamese garment industry.
3. Profile of the Training
3.40 The training must be at the level to take – what is a fledgling industry - up to a levelof productivity and competitiveness, that can sustain the development of new markets, andestablish Vietnam as an attractive sourcing base.
3.41 It must concentrate on the basics of good methods and highly trained management asthe foundation for expansion later. To this end we recommend focusing upon operatingmethods and production unit supervision as the first priorities.
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4. Training Components:
3.42 Our recommendation is that the following areas of training be attended to initially:
a) Operating methods : Production Engineering/Organisationb) Supervisor Trainingc) Pattern and Lay Making, and Cutting
Then:
d) Operator Traininge) Quality Assurance, and Clothing Technologyf) Production managementg) Fashion and creative design
3.43 The training of mechanics should be carried out by the manufacturers of equipment,most of whom have either facilities or training programs for this.
a) Training Content – Operating Methods: Production Engineering/ Organisation
3.44 As has been observed in the visits and from our own experience of studies done inVietnam, the methods and equipment used by the industry are at the lowest end of thetechnological scale. In productive terms the companies are not competitive with rivaleconomies. The dependence upon low labor rates can only sustain competitiveness for alimited time before economic aspirations of the workers, and progress of the economy, putupward pressure on earnings levels. This has previously happened elsewhere, in Thailand andMalaysia for example, countries which now are having to invest in more productive methods,rather later than they should have done. The industry can raise productivity levelsirrespective of business growth or status, and preparation for the future, is the best way tobecome a first class world garment producer.
3.45 It is for these reasons that we recommend that training in efficient productionmethods, and the skills of using better equipment be the first priority of any training support.
3.46 Production Engineering:
The content of production engineering techniques should include:
• Introduction to Garment Construction
An overview of the major constructions and materials used in Garment making
• Garment Analysis
The breakdown of Garments into production operation sequences and modulessuited to manufacturing. How to use this analysis as the base for designing
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operating systems, involving the logical pre-assembly of small parts, theassembly of the parts, and the finishing.
• Work Measurement and setting Production Standards
How to assess the production time required for each operation and the allowancesfor rest and fatigue which must be built in. The setting of standards andmonitoring of performance. How to use production standards as a means ofmotivating the operator.
• The materials
Training in the make up and uses of the main fabrics used, including knowledgeof the spinning, weaving, knitting, dyeing and finishing techniques.
• Equipment
The major machinery, its application and flexibility. This includes pattern makingon CAD systems, lay making, spreading, cutting and sewing as well as thefinishing. Stitch types and other methods of assembly are covered. Wherepossible the trainee is given the opportunity to cut and sew a garment so that thebasic skills of sewing and other work are learnt and understood.
• Workplace Methodology
An intensive part of the course where trainees are taught the techniques andpractices of method study and other industrial engineering skills such asergonomics. Practical work on site is an essential part of this subject. As well aslearning the current equipment, productivity enhancing attachments, andtechniques available, students will be introduced to state of the art methods beingdeveloped so that they may monitor and assess such developments in the future.
• Materials Handling
As a typical garment requires as much as 80% of the work time for moving, re-positioning and handling the components, trainees are taught the various means oftransporting products through the production process. They are introduced toready-made systems available as well as how to design their own systemseconomically from local materials.
• Implementing the Changes
All the techniques in the world are useless unless the engineer can communicatewith, demonstrate, and convince workers, of the benefits of improved methods.
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Techniques and means of selling the changes and overcoming barriers to changeare also learnt.
3.47 Production Organisation:
• Manufacturing Functions
The factors affecting production department structures capable of carrying outspecific tasks in accordance with market demands, such as quick response, lowcost, high quality, style variability.
• Manufacturing Layout
From the product analysis the production engineer is taught to utilise the spaceavailable to the optimum in order to maximise good working methods, logicalworkflow and work in process management.
• Material Utilisation
Training in the pattern making operation, fabric inspection, and lay makingtechniques, to optimise the utilisation of fabric. How to install controls on usageand deal with suppliers on unacceptable variances. Training on the currenttechnologies of CAD systems is included.
• Quality Assurance
Means of preventing work going wrong, and the ways to spot the incorrect workas soon as possible to reduce repair time, and maintain high quality. Statisticalmeans of spot-checking. Quality audits.
• Production Planning and Control
An introduction to using the knowledge of the production system, the standardsand feedback to plan effectively and realistically. How to monitor the progress oforders against customer expectations.
• Costing and Return on Investment
The ways of evaluating the returns from production method improvementsThe cost behaviours of garmentsBasic Financial management and records
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3.48 Benefits of the Training
We believe from experience that such a comprehensive and practical course willprovide the future manufacturing managers for the industry, as the techniques and skillslearnt are all applicable to managing a clothing production company. Each component shouldbe designed, taking into account the present level of knowledge and skills found during thestudy, and from the consultant’s experience of the Vietnamese industry.
b) Training Content - Supervisor Training
3.49 The development of improved production methods, means that the first line ofmanufacturing management will have to understand the methods, be able to apply them, andteach and manage the operators on the new systems of manufacturing,
3.50 The training should also include skills of running organised production lines andutilising the human resources available.The training course should be initially taught off siteat the training provider location and should be continued in the factories.
Training content should include the following:
Training in General Supervision Skills:
• Clothing Technology
The knowledge of the different stitch types and seams. How to recognise poorstitching and its effect on various fabrics. The main fabric types, and theirbehaviour in the machine.
• Motivation of workers
The ways of keeping operators interested in producing at a productive rate andgood quality. Encouragement, recognition, and leadership
• Leadership and handling authority
How to assert oneself and provide the leadership that operators want.The personal qualities of a supervisor, required to manage a production unit.
• Communication
The skills required to give instructions clearly, and how to demonstrate andillustrate methods of working.
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Training in Specific Garment Production Skills:
• Production Line Organisation
The logical sequencing of operations, the layout of workplaces and the ways inwhich the supervisor controls the flow of work.
• Sewing Methods
Basic introduction to operation method analysis, and how to organise work forthe most productive result. Handling techniques and how to train or re-trainoperators onto the best methods at the workplace.
• Machinery use and maintenance
How to get the best out of the machinery. Routine cleaning and maintenance.Thread tension adjustments and other running repairs such as needle changingand stitch adjustments.
• Line Balancing
The techniques of maintaining a constant flow of work to each operator so thatutilisation of the workforce and equipment is optimised. Visual and calculationmethods.
• Progressing
The disciplines of maintaining sequencing through production. The methods usedto retain bundle integrity, and matched parts. Ways of working with economicwork in process levels and getting garments through quickly.
• Quality Assurance and control
Recognising sewing and other faults and identifying the cause. Ways of setting upcontrols, and identifying faults at the earliest stage possible. How to make repairseffective and minimise alteration time.
• Factory Rules
Health and safety regulations, best practice, and environmental considerations.Disciplinary procedures, and how to handle difficult operators.
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c) Training Content - Pattern and Lay-making, and Cutting
3.51 As the industry is able to obtain more FOB work, the companies will have to developsourcing, buying and material utilisation skills in order to make acceptable margins from thistype of business. Initially whatever FOB business is obtained, the factory must be capable ofmeeting not only the client’s requirements for styling and fit through good pattern skills butto utilise the material to the optimum. It is normal for the material cost to represent as muchas 65-80% of the product manufacturing costs in low labour rate economies, and goodutilisation of materials purchased, is vital to commercial success.
Training content should include the following:
• Pattern Making
How patterns are designed and sized. The identification of the parts and thefeatures of a pattern.
• Lay Making
The manual methods of laying out patterns to achieve optimum utilisation ofmaterials. How to measure and improve lays.
• Spreading
The techniques of hand spreading, machine spreading and inspection of thefabric.
• Cutting
Basic skills of cutting with straight knives, band knives and other hand operatedknives.
• Preparation for Sewing
Bundling, numbering and controlling cut work supply to sewing.
• Computerised Lay Making
An introduction and appreciation of the benefits of CAD assisted lay making.
d) Training Content Operator Training
3.52 The above three aspects of training are the priorities for “kick starting” the industryinto improved training. Once these skills are in place then investment in operator training isthe next logical step. Improved training in the workplace, can result in significant reductionsin training times, which in turn means more output sooner from the new entrants, and higherskill levels to reinforce the improved methods.
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3.53 Ideally each factory would have its own training area with trained instructors teachingthe sewing and other operational skills to new industry entrants. Re-training experiencedoperators onto the company’s ways of manufacturing would also be covered.
Training content should include the following:
Operator Skills:
• Selection of workers for operational work.
Relating the tasks to be performed to the inherent skills of the applicant for work.Simple selection exercises.
• Teaching the knowledge required
Getting the trainee familiar with the surroundings and the language of thegarment factory (induction)
• Constructing a training course
The way in which knowledge and skill development exercises are organised sothat the trainee develops the skills effectively.
• Basic Skills for Sewing and other Operations
How to develop the basic skills of movement and perception.
• Identifying job skills
Analysing and identifying the specific job skills that are to be taught.
• Developing exercises to reach high skill levels
How to design job training exercises and the use of targets to motivate andmeasure progress.
• Quality Training
Knowing what is required and recognising faults. How to correct and preventmistakes. Carrying out a simple fault analysis. Simple sampling techniques.
• Health and Safety
The development of habits for safe and healthy working
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• Training for stamina and consistency
Exercises to maintain high output and quality throughout a working day.
• Training records and results
Simple controls and motivating methods for the trainee. Measuring and costingout training effectiveness.
e) Training Content - Quality Assurance
3.54 Developing garment industries usually begin on the simpler garments. This enablesthe manufacturers and their operators to learn the quality requirements of the market.
3.55 The quality demands for the Asian markets and other developing markets where manyVietnamese companies have begun trading, are not as demanding as the established and moresophisticated European and American markets.
3.56 The need is for a practical training support in plant, as the variation in garments andquality requirements is very broad, so that any training should be relevant to, and focusedupon, a company’s specific customer needs.
Training content should include the following:
• The Components of Quality in Garments
Seam construction and appearance. Stitch types. Fit and shape. Sizing.Finishing. Customer perception.
• Specifications
How to draw up a working specification to meet customer requirements. Tolerances and Interpretation.
• Inspection methods
Understanding of the effectiveness and limitations of the various systems ofinspections such as in line, end of line and random methods.
• Sampling Techniques
Introduction to simple sampling methods on the production line.Carrying out quality audits.
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• Quality Certification
The outlines of requirements for ISO 9000 certification and its relevance toexporters
f) Training Content - Production Management
3.57 The industry must be able to run and develop more flexible, highly productive andprofitable garment factories in Vietnam. It is therefore vital that the industry begins todevelop a group of professional production managers capable of utilising new technology andmodern management techniques, and running factories at the levels of performance whichare demanded by markets forces.
3.58 This training should be directed at the factory or departmental managers who willneed improved organisational and planning skills to cope with the development of moreefficient manufacturing methods as well as the commercial skills of meeting customer, andcompany needs.
Training content should include the following:
• Planning for Garment Operations
Multi-task management. Operation breakdown for productivity and control.Flexible systems of production and layouts. Organising and planning pre-production activities such as sampling and approvals.
• Managing the Supply Chain
Sourcing, purchasing and specification of materials. Working relationships withsuppliers and customers. Packaging and distribution. Export procedures andrequirements.
• Balancing the Production Units
Using production standards to evaluate production times and loading.Designing simple balancing and performance controls, and managing these.
• Work in process Controls
How to keep a consistent flow of work to each operation.Methods and handling systems to achieve high productivity and fast response.Meeting deadlines and assigning and managing priorities.Balancing sales requirements with production needs for performance.
• Communicating with Supervisors and Staff.
Briefing, reporting, handling feedback, and presentation skills.
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Motivating the staff. Maintaining contact with the production floor (Managementby walking about).
• Improvement Projects
Project management techniques applied to development of the manufacturingfacilities.
• Delegating and Developing Staff
The need to delegate and overcome the normal concerns of the manager andbarriers to delegation. Assessing training needs and enhancing the skills of thesupervisory staff.
• Basic Financial Management
Costing the product, Production measures, Profit and Loss, and the managementof Assets and liabilities.
g) Training content - Fashion and Creative Design
3.59 The development of a design element within the garment industry will depend uponthe progress of the industry in its ability to produce good clothing to customer’sspecifications. Therefore we make no recommendations for detailed training at this stage. Wewould state that there exists within the European countries excellent facilities in the fashiondepartments of several universities for studying design and bringing those skills to Vietnam.We would recommend that once the training project is shown to be successful and is wellsupported by the industry then approaches should be made to these universities forinformation on syllabus and requirements.
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IV. OPERATIONS:Peter Davies, Fielden-Cegos, United Kingdom
A. Introduction
4.01 The textile and garment industry is central to Vietnam’s transition from a centrallyplanned to a market economy, from an economic system built predominately around stateenterprises to one which treats all enterprises equally regardless of ownership, and to thesuccess of the doi moi process. The industry is also a critical element in the country’s exportdrive, and more generally its efforts to integrate itself into the international economy.Textiles and garments are invariably one of the major industries in a country’s early-stagemanufactured exports. Export success in this industry is usually the forerunner to theemergence of a broad-based export-oriented development strategy. Failure to achieve exportsuccess in this industry is invariably symptomatic of deep-seated domestic obstacles and aninability to build on strong potential comparative advantage. Thus, the industry is importantnot just as a major source of exports and employment, but also for what its growth indicatesmore generally about economic performance.
4.02 Having completed the first phase of the international market penetration, thechallenge for Vietnam’s textile and garment industry is to develop a broad-based exportdrive, including a shift to higher quality products and greater product range, against thebackdrop of the Asian economic crisis.
4.03 From the observations and comments made above, the conclus ions in this reportconfirm the only way forward in the short term will be the transfer into semi-automaticprocesses, and to gradually build-up to higher technology.
B. Purpose of survey
4.04 To visit numerous garment manufacturing plants to assess the following:
• To obtain data for the preparation of individual profiles.• To discuss and evaluate their attitude and commitment.• To view the floor area and assess the floor layout, method of manufacture, speed,
pace and level of productivity.• To analyse the various types of machinery and equipment.• To view and discuss the levels of middle management skill.• To generally overview the other departments.• To assess the general working conditions.
C. Observations
4.05 In almost all the visits made, the floor layouts were very congested and the generalworking conditions poor. With regard to the machinery and equipment, this was invariablyvery basic, with little or no attention being paid to attachments or simple additions to improvethe method of work. There was an obvious lack of garment technology techniques andtrained middle management. The following lists the main areas highlighted during theobservation study:
• Congested floor area
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• No defined and organised layout of the machinery• Poor overhead lighting• Little or no knowledge of the basic sewing techniques, such as
- correct positioning of feet, only one foot control- correct threading of the sewing machine- tensioning of top and bottom threads- handling at needle point- length of sewing bursts- needle position at stops and curves- length and purpose of back-tacking- winding of bobbin spool- poor control of machine speed
• Basic machinery, little or no use of semi-automatic machines for critical operations• Operators showed a reasonable understanding of speed and pace• Time consuming garment construction techniques• Many operations could have been combined• Quality control needs to be extended to include in-line inspection• Flow of work not sequential, bundles of parts become mixed and damaged• Cutting skills limited, pieces not out to the line• No lay markers; pieces are marked individually using chalk• No indication of time taken to produce garment
D. Conclusions
4.06 In general, the Vietnam garment industry has a performance efficiency rating in theregion of 45/50 percent, this will obviously have to be greatly improved upon to ensurecontinuous growth within the industry. With the projected economic figures for 1998indicating a reduction of 15 percent, the industry has no alternative but to improve its level ofproductivity. There are signs that the industry is on the brink of a period of rationalisationand shrinkage, and this rethink could force the level of productivity upwards which will resultin a stronger and more efficient industry to meet the world marketplace demands.
4.07 Similar to other garment producing countries, the issue to be decided over the next 4to 5 years (when the quota system will disappear) will be whether or not to move to anextensive capital investment program or to an extensive up-grading of equipment togetherwith a training program to run in parallel with each other.
4.08 The transfer to high-technology requires massive capital investment, although it willprovide the consistent quality requirements; and lower product costs will unfortunately causethe necessity to dramatically reduce manning levels, creating a social problem for people withno work or alternative employment to pursue. This high-technology phase will need to beaddressed during the next 4 to5 years but it has to be introduced on a gradual basis ensuringthat the training for the new technology is implemented alongside the transfer–not only forthe operatives but also for engineers and management.
4.09 The other alternative, of a gradual up-grading of machinery and equipment, is themost logical step to take. It will allow time to reorganise the industry over a longer period oftime. This would allow time to train and retrain operators, engineers and management in thenew skills. Initially the changes to the machinery and equipment are minor–from the basic
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sewing machine like Juki DDL 5550 to the up-graded models with top and bottom threadtrimmers and needle positioners. These machines would be utilised on critical operations toimprove stitch presentation and eliminate hand trimming of sewing threads (inaccuratetrimming of sewing thread can result in damage to the garment). Other up-grades wouldinvolve pattern design and development by using the new computer techniques, such as, PDS(Pattern Design System) for the accurate draughting of the standard block, grading andpattern cutting. Sewing quality problems normally result from inaccurate pattern formationand fabric cutting: sewing can only become accurate if the patterns and the cutting operationsare carried out with the maximum degree of accuracy.
4.10 It can be concluded from the above that the logical sequence should be:
• Development and accuracy of the patterns• Improved cutting techniques to provide accurate cut pieces• Training and development in garment technology• Training and development of middle management
4.11 A typical program for in-plant sessions would involve the following:
• Basic Work Measurement, taking a time for each operation• Garment Construction, finding the best way to make the garment• Sequential Sewing, finding the logical path of manufacture• Attachments, awareness of types and uses• Machine awareness, knowing how and what machine can be used• Floor layout, positioning the machines in sequence• Cutting Room. Developing good practices, procedures and controls• Training and Re-training, on-line techniques• Production Planning, using operational times to balance production• Labor Cost Control, using operational times to produce garment cost• Quality Control, practices and procedures• Management organisation, developing the structure and responsibilities
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V. PROFILES OF SERVICE PROVIDERS FOR GARMENT FIRMS:
Hanoi University of Technology (HUT) , Vietnam
A. Training and Education Services
1. Demand and Supply of Training & Education services
v Demand 5.01 With 500,000 employees in over 600 garment factories in Vietnam, there is a strongneed for training. Training of industrial sewing workers, technicians, designers, andmanagement are the key priorities. 5.02 The demand for training is highest among state-owned enterprises which representapprox. 70 percent of the demand. 5.03 It is estimated that the demand for training among managers, technicians, workers anddesigners may increase by 50 percent in the next few years.
v Supply 5.04 In recent years, training institutions have been able to meet the needs of the garmentindustry; however, in recent times, institutions have been unable to keep up with the rapidgrowth of the industry. 5.05 Training for industrial sewing workers and maintenance workers is generally providedby job training centers and vocational schools and colleges, while training for management,technicians, and engineers is provided by universities and institutes. 5.06 Training fees are generally paid by participants, but in some cases, are met by theGovernment, garment companies and social organizations. Training courses vary from threeto six months, or one to five years depending on the job’s requirements and the type oftraining. Training materials and methods are generally not appropriate and need to beupdated and improved. The teachers themselves also need to be retrained. 5.07 To sum up, it may be said that the supply of training services for garment industry issatisfactory in terms of quantity and variety of training. However the quality of theseservices are not satisfying the demands of garment companies. Therefore, efforts should bemade to improve the quality of training currently offered by these institutions.
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2. Profiles of Service Providers FACULTY OF TEXTILE, GARMENT & FASHION DESIGN (HANOI UNIVERSITY OF TECHNOLOGY)
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
Dai Co Viet Road, Block C5-217, Hai Ba Trung Dist., Hanoi Tel : 844 8692401 Fax: 844 8696702 Dr. Tran Minh Nam, Dean of Faculty Education &Training, Research, Technology Transfer and Consulting 1956 State-owned university Under Ministry of Education & Training 43 41 2
MAIN SERVICES • Undergraduate programs (5 years) specialized in Textile, Garment andFashion design.
• Technical college programs (3 years) specialized in Garment• Postgraduate programs (Master and Ph.D) in Garment and Textile
Technology• Conducting research on garment technology, fashion design, finishing
technology, new materials, spinning, weaving, knitting
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned and private companies, JVs, 100 percent foreign-ownedcompanies, research institutes, technical colleges. Garment, textile, fashion design, spinning, knitting, weaving Nation-wide The Faculty has trained more than 2000 professionals, engineers andtechnical bachelors of which 70 are specialized in garment & fashion design,240 are garment bachelors, 9 M.Sc and 2 Ph.D. The Faculty has alsoconducted successful research on vegetable fibres (VIE/86/010) for UNDPduring 1987-1991, 3 training courses in design techniques for UNIDO(1998) and a project in natural dyestuff for OXFAM Hong Kong -Quebec...etc.
COMMENTS The Faculty of Textile, Garment and Fashion Design is the first and biggesttraining organisation specialized in textile, garment, fashion design inVietnam. Moreover, the Faculty has also been organizing training programsat a technical college level and short-term training courses for local garmententerprises. The Faculty’s teaching staff has 43 professionals including 1professor, 2 associate professors, 15 Ph.D. and 5 Masters. The garment andfashion design section under the Faculty consists of 13 staff of which 2 arePh.D. trained abroad, 3 Masters, 7 engineers and 1 technician at secondarylevel. The Faculty’s core competencies lie in its very strong relationshipswith Government organisations such as the Ministry of Industry, VietnamNational Textile & Garment Corporation, People’s Committees of differentcities and provinces, research institutes, etc..... and with garment-textileenterprises on a nationwide scale. International relationships with foreignuniversities have also increasingly developed.
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FACULTY OF FASHION DESIGN (HANOI OPEN UNIVERSITY) GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
B1, Bach Khoa Ward, Hai Ba Trung Dist., Hanoi Tel: 844 8693786 Fax: 844 8691587 Mr. Nguyen Ngoc Dung N/A Training 1993 State-owned university Ministry of Education & Training 10 10 0
MAIN SERVICES Training undergraduates in architecture, industrial art and fashiondesign
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, private, joint-venture, foreign companies Various economic sectors Hanoi The Faculty has trained 15 undergraduates since 1993 who arecurrently working for textile-garment industry in Vietnam.
COMMENTS The Faculty is famous for its distance-training programs. In co-operation with other universities and local training centres, theFaculty has organized many local training programs such as eveningtraining programs in Hai Phong.
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INDUSTRIAL SECONDARY COLLEGE II GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Service Area Year Established Legal Form Ownership Total number of staff Number of professional staff Number of support staff
Km. 6, Rd. 10, Nam Dinh - Ninh Binh, Nam Dinh city Tel: 84 350 849 581 Fax: 84 350 843 051 Mr. Phan Ba Yen, Vice Director N/A Training 1998 State-owned College Ministry of Industry 110 60 50
MAIN SERVICES Providing the following training programs for garment companies:• Technical secondary level - 2.5 years• Certificate training courses for garment workers - 3 to 18 months
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned enterprises, private companies, joint ventures, vocationalcentres Garment and textile Nam Dinh, Thai Binh, Hung Yen Annually, the school trains 120-150 cadres at secondary level, technicalpersonnel and garment workers and around 30 technical workersspecialized in the maintenance and repair of garment equipment
COMMENTS The school opened its Garment Faculty in 1990 which focuses on traininggarment workers and technical personnel at secondary level.
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INDUSTRIAL TECHNICAL ECONOMIC COLLEGE I GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Service Area Year Established Legal Form Ownership Total number of staff Number of professional staff Number of support staff
456 Minh Khai St., Hai Ba Trung Dist., Hanoi Tel: 844 8621504/ 8621860 Fax: 844 8623938 Prof. Duong Hong Quy, Rector, Mr. Tran Manh Hiep, Vice Rector 353 Tran Hung Dao St., Nam Dinh City Tel. 84 350 848706/849616 Fax: 84 350 845745 Training Research 1956 State-owned College Ministry of Industry 165 105 Garment Faculty: 40 60
MAIN SERVICES Providing the following training programs for garment companies:• Technical college level - 3 years - in garment, accounting, business
management• Technical secondary level - 2 years - in garment, accounting, business
management• Certificate training courses - 3 to 18 months - for garment workers.
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned enterprises, private companies, JVs, vocational centres, statemanagement organisations. Garment and textile. The North and Centre of Viet Nam, mainly Nam Dinh, Thai Binh, NamHa, and Ninh Binh Provinces. The school has trained about 600 bachelors, 2000 cadres at technicalsecondary level and more than 5000 workers for garment industry.
COMMENTS The school has become one of the leaders in training garment workers attechnical secondary and technical college levels in Vietnam. The schoolhas gained significant experience in training activities and has built aprofessional team of teachers and garment experts. The Garment Facultywas established in 1985 with more than 40 staff comprising 2 engineerswho graduated from former Soviet Union, 20 bachelors at technicalcollege level and a team of highly-skilled technical secondary levelworkers. The workshop for garment training is equipped with 200 brandnew and 200 second hand sewing machines. The school has alsoestablished strong relationships with Garment enterprises in Northern andCentral provinces of Vietnam, especially garment companies in Nam Dinhand neighbouring provinces.
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NAM DINH TEXTILE TECHNICAL AND ECONOMIC SCHOOL GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Service Area Year Established Legal Form Ownership Total number of staff Number of professional staff Number of support staff
6 Hoang Dieu St., Nam Dinh City Tel: 84 350 849464 Fax: 84 350 842319 Mr. Le Tung, Principal N/A Training 1968 State-owned College Under Vietnam National Textile Garment Corporation (VINATEX) 65 37 Garment faculty: 10 28
MAIN SERVICES Providing the following training programs for garment companies:• Technical college level - 3 years• Technical secondary level - 2 years• Certificate training courses - 3 to 18 months
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned enterprises, private companies, co-operatives Garment and textile Nam Dinh and Thai Binh Provinces. The school trains annually from 250 to 300 garment workers.
COMMENTS The school specialises in training garment workers for local enterprises.The 10-staffed Garment Faculty comprises 1 technical college levelteacher, 2 technical secondary level teachers and highly-skilled garmentworkers. The garment workshop is equipped with 125 sewing machinesand 100 other garment machines.
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TRAINING SCHOOL OF GARMENT COMPANY 10 GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Service Area Year Established Legal Form Ownership Total number of staff Number of professional staff Number of support staff
Sai Dong, Gia Lam, Hanoi Tel: 844 8276 923 / 8276 396 Fax: 844 8276925 Mr. Nguyen Nhu Hung, Director N/A Training 1946 State-owned College Under Garment Company 10 20 15 5
MAIN SERVICES Providing the following training programs for garment companies:• Technical college level - 3 years• Technical secondary level - 2 years• Management training
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned enterprises, private companies, limited liability companies Garment and textile Thai Binh, Gia Lam, Nam Dinh and Hai Phong The school has been conducting training courses for the management,technical staff and workers for about 10 garment companies, includingGarment Company 10 and other companies in Northern provinces.
COMMENTS The school has established strong relationships with its client companies,a wide consulting network and a flexible board of management. Theschool is planning to extend its activities to fashion design training andsupport services for garment companies.
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HANOI GARMENT TECHNICAL SCHOOL GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Service Area Year Established Legal Form Ownership Total number of staff Number of professional staff Number of support staff
56 Kham Thien, Dong Da, Hanoi Tel: 844 8511 190/ 8511 767 Mr. Hoang Huu Trung, Chief of Training Division N/A Training 1975 State-owned College Hanoi Education Department 31 21 10
MAIN SERVICES Providing the following training programs for garment companies:• Worker training - short-term, long-term, and customised courses• Technical training
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned and private companies. Garment and textile Hanoi and provinces nearby The school has been training thousands of garment workers at 3/4 levelfor State-owned and private garment enterprises in Hanoi.
COMMENTS The school has a qualified team of teachers and receives government’sfinancial aid annually. It has built up its own relationship with severaldomestic garment companies. The school’s future plan is to open trainingprograms in fashion design and improve the overall training quality.
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HAI BA TRUNG DISTRICT TRAINING CENTRE GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Service Area Year Established Legal Form Ownership Total number of staff Number of professional staff Number of support staff
Mai Huong Quarter, Bach Mai, Hanoi Tel: 844 8631 429 Fax: 844 8634 160 Mr. Pham Van Khanh, Director N/A Training 1984 State-owned State-owned 25 15 10
MAIN SERVICES Providing the following training programs for garment companies:• Worker training• Technical training• Management training: short-term and customised courses
MAIN CUSTOMERS Companies Sectors City/Region Results to date
The unemployed of 25 wards in Hai Ba Trung District and 4 wards ofother districts in Hanoi, former criminals in reintegration programs withthe community, and some garment companies Garment Hanoi and provinces nearby The school has been training hundreds of garment workers for garmententerprises in Hanoi.
COMMENTS As a big training organisation in Hai Ba Trung district, the centre isequipped with up-to-date facilities with 20 classroom and 50 sewingmachines donated by the Swiss Government. In the coming years, thecentre plans to extend its training scope.
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GARMENT AND FASHION TECHNICAL SECONDARY SCHOOL
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
Le Chi Village, Gia Lam Dist., Hanoi Tel : 844 8276514 Fax: 844 8766585 Mrs. Bui Thi Thi, Head Master. N/A Training 1966 State-owned institution Under Vietnam National Textile & Garment Corporation 90 70 20
MAIN SERVICES • Training courses (long-term & short-term) for mechanical workers inmaintenance techniques
• Intensive courses to improve garment workers’ and technicians’skills.
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned and private companies. Garment Mainly in Northern cities and provinces, namely Hanoi, Bac Ninh,Hung Yen, Nam Dinh, Quang Yen, Since 1977, the school has organized 8 training courses for garmenttechnicians and trained 20.000 workers in operating and maintainingsewing machines.
COMMENTS The school is highly respected in training qualified workers for thegarment industry. The training workshop is equipped with 575 sewingmachines and 75 other specialized machines. The school has anexperienced team of qualified teachers. This has made the school oneof the best-known secondary schools in the field of Garment andFashion Technical training in Vietnam.
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VIETNAM PRODUCTIVITY CENTRE (VPC)
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
Hoang Quoc Viet St., Cau Giay Dist., Hanoi Tel : 844 7561548/7561500 Fax: 844 756502 Ms. Nguyen Thi Anh Thu, Head of Customer Relation Unit N/A Training and consulting 1997 State-owned centre National Productivity Organisation (NPO) 33 33 0
MAIN SERVICES
• Training and consulting in the application of total quality
management systems (TQM), including ISO 9000
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, private and JV companies. Various industrial sectors including garment. Mainly in the North and in the Middle of Vietnam The company has carried out more than 40 short-term training courses(1-4 days), trained more than 1000 trainees and provided consultingservices for 14 companies.
COMMENTS During its two years of establishment, VPC has successfully providedtraining and consulting services in ISO 9000 for many business sectorsin Vietnam. The professional team consists of 33 staff of which 3 areMasters and 28 are engineers and Bachelors. The company has strongcustomer relationships and its main customers are: Vinatex, Nam DinhTextile Company, Garment Company 10, Duc Giang GarmentCompany, Viet Thang Garment Company, 29/3 Garment Company.
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TRAINING CENTRE FOR STANDARDS AND QUALITY (STAMEQ)
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
Hoang Quoc Viet St., Nghia Do, Cau Giay Dist., Hanoi Tel : 844 8361407 Fax: 844 8361408 Ph.D. Phan Minh Hang N/A Training 1980 State-owned centre State-owned 9 9 0
MAIN SERVICES Providing training services in application of ISO 9000
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, private and joint-venture companies. All industrial sectors including garments. Mainly in the North and the Middle of Vietnam. The company has been organizing about 30-40 short-term trainingcourses (1-5 days) annually for 800-1000 trainees.
COMMENTS The centre has 9 staff of which 6 are engineers and bachelors.Moreover, the centre is strongly supported by professionals fromSTAMEQ, Economic Institutes and universities.
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BINH THANH TRAINING CENTRE GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
235 Phan Van Tri, Ward 11, Binh Thanh Dist., HCMC Tel: 848 8940 250 Fax: 848 8413576 Ms. Cao Thi Mai Hoa, Chief of Garment Department N/A Training 1984 State-owned enterprise State-owned 80 70 10
MAIN SERVICES • Training garment workers for companies and households
• Training workers for electronic and electric sectors
• Computer training
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned & private companies Mainly Garment sector Ho Chi Minh City Since its establishment, the centre has trained thousands of workersfrom garment companies in HCMC.
COMMENTS The centre trains about 200 workers annually at 3/7 level. With thesupport from UNIDO from 1999, the centre is in better condition toimprove its training quality and to increase the number of trainingcourses.
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FACULTY OF FASHION DESIGN OF HANOI INDUSTRIAL ART COLLEGE GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
O Cho Dua, La Thanh St., Hanoi Tel: 844 8257364 Fax: 844 8517390 Mr. Tran Huy, Dean of Faculty N/A Training 1976 State-owned college Ministry of Education & Training 5 5 0
MAIN SERVICES Training Fashion Designers
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, private, JV, 100 percent foreign owned companies Various economic sectors Nation-wide The college has trained about 30 fashion designers.
COMMENTS It is the first undergraduate training organisation on fashion design inVietnam. The Faculty specialises in Commercial Graphics and ModeCreation Art. The Faculty has also organised short-term technicaltraining courses for management and technicians of textile-garmentcompanies. The Faculty is planning to open training courses in industrial sewingtechniques.
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BAC NAM GARMENT TECHNICAL SCHOOL GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
31 Ly Thuong Kiet St., Hai Phong Tel: 8431 846753 Fax: 8431 843142 Mr. Cao Huu Nghi, Director N/A Training 1956 Social Organization Hai Phong People’s Committee 18 18 0
MAIN SERVICES • Organizing long-term training courses (18 months) for garmentworkers at 3/7 level
• Organizing short-term training courses (1-3 months) for unskilledworkers
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned and private companies Garment Hai Phong city The school has provided thousands of garment workers for state-owned and private enterprises. The company’s main customers are: Hai Phong Garment Company3, Commercial Import/Export Company.
COMMENTS This is the only training institution for the garment industry in HaiPhong. The school is equipped with modern sewing machines ofwhich 24 are industrialised sewing machines. It has conductedmonthly training course for garment workers. Graduates are issued acertificate by Hai Phong Department of Education and Training. It has obtained strong support from Hai Phong Scientific andTechnical Association.
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FASHION AND GARMENT TECHNICAL HIGH SCHOOL II GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
6/10 Kha Van Can, Linh Dong, Thu Duc, HCMC Tel: 848 8966002 Fax: 848 8960561 Mr. Huynh Cong Tri, Rector N/A Training 1978 State-owned school State owned 100 70 30
MAIN SERVICES • Technical college training in fashion design, sewingtechnology, equipment maintenance and operation
• Technical workers training• Technical secondary level workers training• Short-term training to improve management skills for garment
companies’ management• Providing technical consulting services
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, private companies Garment Southern region Since its establishment, the School has trained 10.917 garmentprofessionals and workers of which 3387 are technical workers,63 technical secondary level workers, 207 technical college levelworkers, 50 bachelors and 7210 management cadres.
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B. Marketing Services 1. Demand and Supply of Marketing Services
v Demand 5.08 Interviews with the senior management of garment companies in Northern, Southernand Central provinces in Vietnam affirmed that almost all garment companies have a demandfor marketing services. However, only about 20-30 percent of garment companies currentlyuse marketing services. The main reasons for this is as follows:
• Most Vietnamese garment companies are subcontracting for foreign companies; onlya limited number of companies undertake direct FOB export;
• Most of them lack information about marketing services and service providers;• Most management of garment companies lack marketing skills and knowledge;• Many of them do not see the importance of marketing’s role in business.
5.09 The main marketing services used by garment companies are advertising, exhibitions,trade fairs, and total quality management and most of the users of these services are bigState-owned or joint venture companies.
5.10 Based on the growth of the garment industry and the results of survey, the use ofmarketing services (both in quantity and in quality) is estimated to increase threefold in thefuture.
v Supply
5.11 Findings from the survey show that there are only a limited number of organizationsproviding marketing services for garment companies. They are usually young, small,inexperienced, and located in big cities such as Hanoi and Ho Chi Minh City.
5.12 The main kinds of service providers are state owned, private and joint venturecompanies; among them, the state owned companies have the biggest market share.
5.13 Marketing service organizations usually provide services to a wide range ofcustomers from different sectors; only a few of them focus on the garment sector and thosethat do focus mainly on the domestic sector. The reasons for this are as follows:
• Garment companies are not significant users of marketing services compared withother sectors
• Service providers lack capacity, skills and capital
5.14 In conclusion, it can be said that although the demand for marketing services amonggarment companies is quite high, their use of these services is still limited. In order to meetthe needs of garment companies, service providers need to increase both the quantity andrelevance of their services.
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2. Profiles of Service Providers VIETNAM TRADE FAIR AND ADVERTISING NATIONAL COMPANY (VINEXAD)
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
9 Dinh Le St., Hoan Kiem Dist., Hanoi Tel : 844 8255512 Fax: 844 8255556 Mr. Nguyen Thanh Than, Vice President. 273 Hai Ba Trung St., Dist. 3, HCMC 51 Dong Khoi St., Dist. 1, HCMC Advertising Trade Fair Organizing 1975 State-owned enterprise Under Ministry of Trade 250 180 70
MAIN SERVICES • Organizing Trade Fairs• Providing advertising services• Publishing "Information-Advertisement" Magazine• Organizing Fashion Shows
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned and private companies Various sectors, including garment industry Hanoi & HCMC Since its establishment in 1975, VINEXAD has organised more than12 Fashion Shows for garment products, has established strong co-operation relationships with garment companies and assisted them topromote their products in international markets.
COMMENTS VINEXAD currently has a big and successful business and is planningto expand its business activities. The company has also beenorganizing trade fairs and exhibitions for an increasing number offoreign companies.
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TRADE SERVICE COMPANY NO. 1
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
2 Mai Dong St., Hai Ba Trung Dist., Hanoi Tel : 844 8621228 Fax: 844 824620 Mr. Nguyen Dinh Hy, Director. N/A Procurement services Import/Export 1995 State-owned Under Vietnam National Textile Garment Corporation 80 30 50
MAIN SERVICES • Providing raw materials, fabrics, accessories & chemicals to textileand garment companies.
• Domestic trading in textile and garment products• Promoting import-export activities of garment companies
MAIN CUSTOMERS Companies Sectors City/Region Results to date
Local private and state-owned, co-operatives, households, tradevillages. Textile, garment. Hanoi, HCMC, Hue, Da Nang, Ha Tay, Nam Dinh, and some otherprovinces. Total turnover in 1997 reached VND 83 billion and is expected toreach VND 100 billion in 1998. The company’s biggest customers are member companies of VietnamNational Textile Garment Corporation.
COMMENTS The company has become a very important supplier of raw materialsfor garment companies such as cotton, man-made fibres, chemicals,and accessories. It enjoys a high reputation among its businesspartners for its products’ quality.
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HCMC EXHIBITION AND INFORMATION CENTRE
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
97 Pho Duc Chinh St., Dist. 1, HCMC Tel: 848 8210 012 Fax: 848 8296 502 Mr. Nguyen Van Minh, Administration Officer N/A Providing information, marketing, and exhibition services. 1990 State-owned enterprise State-owned 96 81 15
MAIN SERVICES • Organizing exhibitions, trade fairs, customer’s conferences• Advising and conducting advertising services• Providing information and organizing international trade fairs
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, private, and foreign companies Garment Ho Chi Minh City and Southern region The centre has served hundreds of clients, both domestic and foreigncompanies. It organizes exhibitions and customers’ conferencesannually. The centre has a good relationship with internationaladvertising companies and international exhibition centres. Its maincustomers are Viet Tien Co., Binh Minh Co., Truong Giang Co., andetc.
COMMENTS The centre has established itself as one of the best knownorganizations in HCMC and Southern region. Aided by the HCMCCulture and Information Office, the centre is well equipped and hasgood operating conditions. It also has a good relationship withdomestic and foreign clients. However, the centre needs furtherinvestment in its infrastructure and equipment and in improving theskills of its management staff. It also needs to widen co-operationwith international partners.
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VIETNAM SUPERINTENDENT AND INSPECTION COMPANY (VINACONTROL) GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
54 Tran Nhan Tong/ 96 Yet Kieu, Hanoi Tel: 844 8255 077/ 8256 184 Fax: 844 8253 844 Mr. Le Viet Su, General Director 80 Ba Huyen Thanh Quan, HCMC Providing product quality control services 1957 State-owned enterprise Ministry of Trade 800 700 100
MAIN SERVICES Product quality control services for almost all goods and services
MAIN CUSTOMERS Companies Sectors City/Region Results to date
Domestic and foreign companies Trading, Manufacturing, Exporting, Importing Nation-wide The company has been providing a great number of services in totalquality management and other related services.
COMMENTS As the biggest product quality control company in the northernregion, VINACONTROL specialises in providing goods and totalquality control services. The company has 4 branches in Hai Phong,Quang Ninh, Da Nang, HCMC. VINACONTROL has a modernlaboratory system in all of its branches. Its certificates are widelyrecognized.
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TECHNICAL CENTRE FOR QUALITY ASSURANCE-TESTING-MEASUREMENT GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
Hoang Quoc Viet Rd., Cau Giay Dist., Hanoi Tel: 848 8361 395 Fax: 848 8361 199 Ms. Pham Thu Thuy, Director Providing TQM services 1977 State-owned enterprise Ministry of Science, Technology and Environment 6 6 0
MAIN SERVICES Providing total quality management services in the light industrysector.
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, private, joint-venture companies Light industry, including garment Nation-wide The centre has been providing quality control services for severalgarment and textile companies. Main customers: Garment Company 28, Garment Company 20,Garment company X19, Coats Total Phong Phu, and so on.
COMMENTS The centre’s laboratory is equipped with modern machines andequipment. Its major activities include quality control services forgarment companies, setting Vietnamese standards, providingconsulting services, and training technicians for enterprises in lightindustry.
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THANG LONG SUPERVISION CO. LTD.
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
262 Vong Str., Thanh Tri Dist., Hanoi Tel : 844 8698120 Fax: 844 8698124 Mr. Nguyen Ngoc Duyet, Vice Director. N/A Total Quality Management 1998 Limited Liability Company Private 8 7 1
MAIN SERVICES • Providing Total Quality Management Services for import-export andconsumer goods.
• TQM consulting: e.g. ISO 9000• Pricing products at market value
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State, private, joint venture and foreign companies Industrial, Agricultural, Mechanical, Textile-Garment, Cement,Mineral Water Hanoi, Ninh Binh, Nam Dinh, Ha Nam. The company has conducted quality examinations and evaluations ofPhu Thai’s (ltd. liability) imported products, a mineral waterproduction line in Ninh Binh, the production equipment of Hiep HungShoe Company, & the electronic system of Hoan Kiem district’spolice.
COMMENTS The company has a team of qualified experts and associates.
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PHI THINH TRADING AND SERVICE COMPANY LTD.
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
152 Dien Bien Phu, Dist. 3, HCMC Tel: 848 8203857 Fax: 848 8202784 Ms. Hoang Thi Ngoc Mai, Office Co-ordinator 43 Ly Nam De Str., Hoan Kiem Dist., Hanoi Total Quality Management Services 1994 Limited Liability Company Private 24 22 2
MAIN SERVICES Providing Total Quality Management (TQM) services to garmentcompanies.
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned and foreign companies Garment HCMC, Hanoi, My Tho The company has provided TQM services in packaged form fornearly 80 garment companies. Its main customers are: Just Jamie& Paulrich Ltd, Fifth Avenue, Carfax (British), Target(Australian), Garment Company X28, Tien Tien GarmentCompany.
COMMENTS The company has a powerful team of TQM experts who havegraduated from abroad and are supported by foreign experts. Thecompany has achieved a high reputation in its service quality andhigh customer satisfaction. It has also established a very strongrelationship with domestic as well as foreign customers such asEngland, South Korea and maintained a large number of loyalcustomers (both domestic and foreign). The company’s future planis to expand its cooperative relationships on a nation-wide scale.
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PLANNING AND MARKETING DEPARTMENT (VIETNAM NATIONAL TEXTILE ANDGARMENT CORPORATION) GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
25 Ba Trieu Str., Hanoi Tel: 844 8265897 Fax: 844 8262268 Mr. Nguyen Thanh Tung, Expert N/A Marketing and Information Services 1955 (Vinatex was merged between the Textile Department andGarment Department in 4/1995) State-owned enterprise Vietnam National Textile-Garment Corporation 10 10 0
MAIN SERVICES • Providing market research services• Providing business and production related information for textile-
garment companies• Organizing customer’s conferences• Collecting and processing market information for the garment and
fashion design industry. MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, private and foreign companies Textile and garment Nation-wide The Department has achieved significant results since itsestablishment: organizing annual textile-garment exhibitions,organizing conferences on garment technology and fashion design,& developing international relationships with foreign partners.
COMMENTS The Department has been very successful in promoting marketingand information services among companies in the Garment & Textileindustry. The professional team is divided into specialized groupsresponsible for each sector of the market (both foreign anddomestic).
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C. Production-Related Services 1. Demand and Supply of Production-Related Services
v Demand 5.15 Production related services are a big concern for garment producers in Vietnam.Although most of the garment companies interviewed were unfamiliar with these services,there is a demand for consulting services related to improving production capacity andproduct quality to assistance with factory layout and production lines. 5.16 Garment companies have a great demand for skilled engineers, technicians andmechanical workers for maintenance services. About 1 worker is needed per 3 lines and oneengineer per 10-15 lines for an average garment company. They also require a stable supplyof equipment, spare parts, and accessories at a reasonable price. 5.17 Services in quality inspection, quality insurance and management system are in greatdemand among big garment companies with capacity of 5-10 million products per annum.
v Supply 5.18 There are a number of organizations providing training services in this area togarment companies in Vietnam, eg: courses on garment line design provided by the Facultyof Textile-Garment of Hanoi University of Technology (HUT); and specialized lectures andshort courses in production management provided to garment companies by HUT’s faculty ofEconomics and Management. 5.19 However, higher education institutions do not have training courses for engineerswhich focus on garment equipment maintenance. Therefore, in garment companies,maintenance services are usually conducted by engineers who are trained in precisemechanical engineering. Garment training schools offer many courses for trainingmechanical workers but trained workers do not generally meet the requirements of garmentcompanies. 5.20 The supply of equipment, spare parts and accessories is conducted mostly by foreignmanufacturers though some local factories provide, in limited numbers, unsophisticated partsand accessories for garment companies. 5.21 Quality management services are usually carried out internally by garment companiesboth on the production line and after each production stage. The technical and productquality control department of garment companies assume the responsibility for the quality offinal products as well for packaging and storage. 5.22 In short, in the coming years, the support organizations in this area must strengthenand improve their services to better satisfy the increasing demands of garment companies.
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2. Profiles of Service Providers HOCHIMINH CITY JUKI SERVICE CENTRE GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Service Area Year Established Legal Form Ownership Total number of staff Number of professional staff Number of support staff
14-16 Tran Hung Dao Street, District 1, HCMC Tel: 848 836 8881 Fax: 848 836 9987 Mr. Pham Van Phuc, Director G 23C Thanh Cong, Hanoi Providing equipment and maintenance services for garmentcompanies 1995 State-owned enterprise State-owned 20 16 4
MAIN SERVICES • Providing garment machines, equipment and spare parts• Providing maintenance services• Technical consulting
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State, private, joint venture and foreign companies Garment HCMC, Hanoi and Southern provinces The Company has served hundreds of garment companies inVietnam since its establishment, for example YASUDA Ltd. Co.,Wonderful Saigon Garment Ltd. Co., Viet Thang GarmentCompany, etc. Currently JUKI is one of the most highly respectedcompanies in terms of its products and services’ quality owing to:• Good management skills• Highly-skilled staff.
COMMENTS JUKI is a company specialized in selling machines and equipment,providing maintenance services, and consulting in technical andproduction management for the garment industry. The company’ssuccess results from the excellent quality of its services andequipment. Furthermore, it has received strong support fromtechnical experts in Japan, South Korea, and Singapore. It has alsoestablished a wide network of business relationships with manygarment companies in the region.
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VIET TIEN TUNG SHING SEWING MACHINE CENTRE GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
27-33 Tran Hung Dao St., Dist. 1, HCMC Tel : 848 8214166 Fax: 848 8293358 Mr. Nguyen Thanh Tan, Deputy Manager. 9 floor, Hanoi Tungshing Square, 2 Ngo Quyen St., Hoan KiemDist., Hanoi City. Tel. 844 8266296/8266297 Fax: 844 8266266 Providing equipment and accessories 1985 (Hanoi Branch: 1991) Join-venture Joint venture between Viet Tien and Tung Shing 1000 900 100
MAIN SERVICES Providing:• Sewing machines, cutters, pressers, irons.• Accessories• Maintenance services
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, private, joint-venture, 100 percent foreign ownedcompanies. Garment. Vietnam, Laos, Cambodia The company provides sewing machines, accessories andmaintenance services to many garment companies in Vietnamand neighboring countries.
COMMENTS Viet Tien - Tung Shing is one of the leading suppliers in sewingmachines and other machines for the garment industry inVietnam. The centre is currently running as a monopoliseddistributor for 7 domestic companies and 10 foreign suppliers.Additionally, the centre is providing door-to-door maintenanceservices and other types of services to satisfy customers’ orders.In addition to the head office in HCMC, the centre has alsoopened agencies and maintenance workshops in Hanoi, NhaTrang, Hai Phong, and Da Nang.
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COMMERCIAL AGENT OF LECTRA SYSTEM CO. LTD.
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
2 Le Thanh Tong St., Hoan Kiem Dist., Hanoi Tel : 844 8257938/8257940 Fax: 844 8257943 Ph.D. Phan Minh Hang N/A Providing applicable software programs and training programs 1996 Limited Liability company FADIN 3 3 0
MAIN SERVICES Providing the following services:• Computer aided design and computer aided manufacturing
(CAD/CAM)• Training• Maintenance and guarantee services
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned and private companies, technical colleges Textile and garment. From the North to the Middle of Vietnam (including Da Nang) Established in 1996 as a commercial agent of LECTRASYSTEMS through FADIN, the company provides mainlyCAD/CAM products to garment companies, schools, universitiesand institutes supporting the garment and fashion designindustry in Vietnam. The company has provided more than 15CAD/CAM systems and several training courses for technicalstaff. Besides, the company has also provided training,consulting and maintenance services for Lectra Systems’equipment. The company’s potential customers are: Garment Company 10,Garment Company 40, Hung Thinh Garment Company, HungYen Garment Company and Nam Dinh Technical SecondarySchool II.
COMMENTS The company has established a high reputation in after-saleservices, including maintenance and guarantees.
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VIETNAM PRODUCTIVITY CENTRE (VPC)
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
Hoang Quoc Viet St., Cau Giay Dist., Hanoi Tel : 844 7561548/7561500 Fax: 844 756502 Ms. Nguyen Thi Anh Thu, Head of Customer Relation Unit N/A Training and consulting 1997 State-owned centre National Productivity Organisation (NPO) 33 33 0
MAIN SERVICES
• Training and consulting in the application of total quality
management systems (TQM), including ISO 9000
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, private and JV companies. Various industrial sectors including garments. Mainly in the North and in the Middle of Vietnam The company has carried out more than 40 short-term trainingcourses (1-4 days), trained more than 1000 trainees and providedconsulting services for 14 companies.
COMMENTS Since its two years of establishment, VPC has successfullyprovided training and consulting services in ISO 9000 for manybusiness sectors in Vietnam. The professional team consists of33 staff of which 3 are Masters and 28 are engineers andBachelors. The company has strong customer relationships andits main customers are: Vinatex, Nam Dinh Textile Company,Garment Company 10, Duc Giang Garment Company, VietThang Garment Company, 29/3 Garment Company.
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D. Design Services 1. Demand and Supply of Design Services
v Demand 5.23 Survey results show that garment and pattern design is new to Vietnam and that morethan 80 percent of garment companies have not used design services. This is mainly due tothe following reasons:
• Most garment companies are processing export goods for foreign partners based onspecified designs;
• Big companies usually have a design section under their Technical Departmentcomprising experts responsible for making counter samples and studying details ofordered designs. However, most of these experts have not been trained in design andare unable to cope with the increasing demand for design, especially fashion design;
• Many companies cannot find suitable partners to supply this service. In fact, thisservice has just started in Vietnam and service providers are quite new, inexperiencedand have not been able to attract customers;
• Small and medium garment companies do not have sufficient budgets to pay for thisservice.
v Supply
5.24 Vietnam Fashion Design Institute (FADIN) is the one of the first organizationsspecializing in this service. It provides a wide range of services, including studying customertastes, advising consumers on local and international fashion trends, and designing fashionfor garment companies. However, most of the designs created by Vietnamese designers areonly of an artistic nature and could hardly be used in garment manufacturing for domesticand foreign markets. 5.25 There are three training organizations specializing in design in Vietnam: (1) IndustrialArt University, with about 20 graduates in design and fashion each year, (2) Open University,Faculty of Fashion with about 20 graduates in design each year, (3) Hanoi TechnologyUniversity, Textile, Garment and Fashion Department with about 30 graduates each year.However, the curricula and training methods of these organizations are not updated andpractical enough to satisfy the increasing demands of garment companies. 5.26 In addition, a number of training centers and schools in garment companies have beenequipped with modern computer-aided design systems but these systems have not been usedefficiently and effectively; they are mostly used for production inside the companies or forteaching purposes. 5.27 In the future, when subcontracting work is gradua lly replaced with direct export, thedemand for home-made designs will increase and to match this demand, suppliers need toincrease the quantity of their courses and improve their quality.
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2. Profiles of Service Providers VIETNAM FASHION DESIGN INSTITUTE (FADIN) GENERAL INFORMATION Address 2 Le Thanh Tong St. Hoan Kiem Dist., Hanoi Telephone/Fax Tel : 844 8257314 Fax : 844 8257554 Contact Person and Title Mrs. Pham Thi Xuan - Research Dept. Manager Address of Subsidiaries 41 Chuong Duong St. , Dist. 1, HCM City. Main Service Area Fashion Design, Marketing, Training ,
Research, Technology Transfer Year Established 1995 Legal From State Owned Company Ownership State Owned Total number of staff 64 (Hanoi : 42; HCMC : 22) Number of professional staff 32 Number of support staff 32
MAIN SERVICES • Carrying out research on fashion design
• Marketing textile materials and garment accessories for new fashions• Providing information on fashion design• Co-operating with the Technical Schools and Colleges in fashion
design and fashion technology training • Participating in the preparation of a development strategy for the
garment industry for the period 2000 - 2010
MAIN CUSTOMERS
Companies Local private and state owned companies, primary and secondary schools. Sectors Garment companies and schools City/ Region Hanoi, HCMC, Danang, Hue and other provinces. Results to date
Since its establishment in 1995, the Institute has served about 30companies and organizations. It has carried out 6 research projects,including fashion materials, fashion design for primary and secondaryschools, design of labor protection clothes, using local fabrics fordesigning ethnic minority fashion, etc. In cooperation with otherinstitutes and colleges, it has also provided training courses in fashiondesign and garment technology.
COMMENTS
Before 1995, the predecessor of FADIN was the Research Centre ofgarment technology. Since 1995, it has expanded its activities to variousfields, including fashion design, marketing, training and technologytransfer. It has established itself as one of the biggest companiesspecializing in fashion design in Vietnam.
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FADIN FASHION DESIGN INSTITUTE (HCMC BRANCH)
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
41 Ben Chuong Duong, Dist. 1, HCMC Tel: 848 8297226 Fax: 848 8213245 Ms. Dang Thi Minh Hanh, Managing Director 2 Le Thanh Tong Str., Hoan Kiem Dist., Hanoi Fashion Design 1996 State-owned enterprise State-owned 24 22 2
MAIN SERVICES • Fashion Design for garment products• Fashion Training
MAIN CUSTOMERS Companies Sectors City/Region Results to date
Stated-owned and private companies Garment Ho Chi Minh City and Hanoi Since its establishment in 1996, the company has served manyGarment Companies such as: Sai Gon Garment Company 3, VietTien Garment Company, Nha Be Garment Company, Nam TienGarment Export Company.
COMMENTS As a fashion design institute, FADIN has been very successful inproviding fashion design services for garment companies. Thestyles the company has designed have become very popular inVietnam. FADIN has also established a very strong relationshipwith customers and has organized many customer conferences. Thecompany has a very professional team of young, creative andenthusiastic fashion designers. In the near future, FADIN plans toconduct training courses on fashion design.
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COMMERCIAL AGENT OF LECTRA SYSTEM CO. LTD.
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
2 Le Thanh Tong St., Hoan Kiem Dist., Hanoi Tel : 844 8257938/8257940 Fax: 844 8257943 Ph.D. Phan Minh Hang N/A Providing applicable software programs and training programs 1996 Limited Liability company FADIN 3 3 0
MAIN SERVICES Providing the following services:• Computer aided design and computer aided manufacturing
(CAD/CAM)• Training• Maintenance and guarantee services
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned and private companies, technical colleges Textile and garment. From the North to the Middle of Vietnam (including Da Nang) Established in 1996 as a commercial agent of LECTRA SYSTEMSthrough FADIN, the company has provided mainly CAD/CAMproducts to garment companies, schools, universities and institutessupporting the garment and fashion design industry in Vietnam. Thecompany has provided more than 15 CAD/CAM systems and severaltraining courses for technical staff. Besides, the company has alsoprovided training, consulting and maintenance services for LectraSystems’ equipment. The company’s potential customers are: Garment Company 10,Garment Company 40, Hung Thinh Garment Company, Hung YenGarment Company and Nam Dinh Technical Secondary School II.
COMMENTS The company has established a high reputation in after-sale services,including maintenance and guarantees.
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FACULTY OF FASHION DESIGN (HANOI OPEN UNIVERSITY) GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
B1, Bach Khoa ward, Hai Ba Trung Dist., Hanoi Tel: 84-4-8693786 Fax: 84-4-691587 Mr. Nguyen Ngoc Dung N/A Training 1993 State-owned university Ministry of Education & Training 10 10 0
MAIN SERVICES Training undergraduates in architecture, industrial art and fashiondesign
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, private, joint-venture, foreign companies Mainly garment and fashion Hanoi The Faculty has produced 15 undergraduates since 1993 who arecurrently working for the textile-garment industry in Vietnam.
COMMENTS The Faculty is famous for its distance-training programs. In co-operation with other universities and local training centres, theFaculty has been offering local training programs such as programsat Hai Phong Evening University.
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FACULTY OF TEXTILE, GARMENT & FASHION DESIGN (HANOI UNIVERSITY OF TECHNOLOGY)
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
Dai Co Viet Road, Block C5-217, Hai Ba Trung Dist., Hanoi Tel : 844 8692401 Fax: 844 8696702 Dr. Tran Minh Nam, Dean of Faculty Education &Training, Research, Technology Transfer and Consulting 1956 State-owned university Under Ministry of Education & Training 43 41 2
MAIN SERVICES • Undergraduate programs (5 years) specialized in Textile, Garment andFashion design.
• Technical college programs (3 years) specialized in Garment• Postgraduate programs (Master and Ph.D) in Garment and Textile
Technology• Conducting research on garment technology, fashion design, finishing
technology, new materials, spinning, weaving, knitting
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned and private companies, JVs, 100 percent foreign-ownedcompanies, research institutes, technical colleges. Garment, textile, fashion design, spinning, knitting, weaving Nation-wide The Faculty has trained more than 2000 professionals, engineers andtechnical bachelors of which 70 are specialized in garment & fashion design,240 are garment bachelors, 9 M.Scs and 2 Ph.Ds. The Faculty has alsoconducted successful research on vegetable fibres (VIE/86/010) for UNDPduring 1987-1991, 3 training courses in design techniques for UNIDO(1998) and a project in natural dyestuffs for OXFAM Hong Kong - Quebec,etc.
COMMENTS The Faculty of Textile, Garment and Fashion Design is the first and biggesttraining organization specialized in textile, garment, & fashion design inVietnam. Moreover, the Faculty has also organized training programs attechnical college level and short-term training courses for local garmententerprises. The Faculty’s teaching staff consists of 43 professionalsincluding 1 professor, 2 associate professors, 15 Ph.Ds. and 5 Masters. Thegarment and fashion design section under the Faculty consists of 13 staff ofwhich 2 are Ph.D. trained abroad, 3 Masters, 7 engineers and 1 technician atsecondary level. The Faculty’s core competencies lie in its very strongrelationships with Government organizations such as the Ministry ofIndustry, Vietnam National Textile & Garment Corporation, People’sCommittees of different cities and provinces, research institutes, etc. andwith garment-textile enterprises on a nationwide scale. Internationalrelationships with foreign universities have also increasingly developed.
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E. Information Services 1. Demand and Supply of Information Services
v Demand 5.28 Findings from the survey show that the demand of garment companies for informationis high but their use of this service is still limited. Normally, when they need information ontopics such as markets, price, design, finance policy, tax policy, etc. they collect this type ofinformation from consulting experts in concerned authorities, for example the Ministry ofFinance, Department of Customs, Ministry of Trade, and Vinatex or through customerconferences, exhibitions or trade fairs. The major users of this service are usually big state-owned and joint venture companies located in big cities like Hanoi and Ho Chi Minh City.The main reasons for this situation are:
• Most garment companies are subcontractors for foreign companies;• Garment companies, especially small and medium companies cannot afford support
services, including information;• Most of them lack information about information services and service providers.
v Supply
5.29 There are only a few organizations providing this kind of service for garmentcompanies in Vietnam. Apart from a few private companies, the Information Department ofthe Textile-Garment Economic Technological Institute and the Marketing and InformationDepartment of VINATEX are the two biggest information service providers in the garmentsector. In addition, the information centres of the Ministry of Trade and the Ministry ofIndustry provide information to garment companies. However, the information provided bythese organizations is still limited, covering only some fields such as science and technology.Their international relations are also restricted, making it difficult for them to collect andupdate information about foreign markets and partners. Other sources of information areusually of a secondary nature like libraries, textile-garment bulletins, trade journals, books,periodicals, newspapers, etc. The reasons for the small quantity of providers of this serviceare as follows:
• Garment companies’ use of information services is not high;• These service organizations lack capital, skills and facilities.
5.30 In conclusion, it can be said that although the demand for information services amonggarment companies is high and is expected to increase, the supply of these services is notsufficient, neither in quantity nor quality.
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2. Profiles of Service Providers ANDI COMPANY LTD GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
9 Pham Ngu Lao St., Dist. 1, HCMC Tel: 848 8211 138 Fax: 848 8211223 Mr. Pham Minh Tu, Director N/A Information services 1993 Limited Liability company Private 12 8 4
MAIN SERVICES • Providing market, economic and trade information
• Publishing trade magazines and papers
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, private, and foreign invested companies All sectors, including garment Ho Chi Minh City The company has served hundreds of clients, both domestic andforeign companies. The company is well-known for its high qualityservices. The company’s clients are increasing and its maincustomers are Motorola, American Rice, Novartist and so on.
COMMENTS ANDI is one of the first companies to provide secondary informationfor clients in the southern region. The company’s core competenciesare a strong team of professional staff (2 MBAs, 1 Master’s ofComputer Science, and 3 computer-science engineers). It is alsosupported by a strong team of associates and state-of-the-artequipment.
To cope with the risk of decreasing numbers of clients due towidening internet application, the company not only providessecondary information but also analyses collected information andadvises clients on processing information.
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HCMC EXHIBITION AND INFORMATION CENTRE
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
97 Pho Duc Chinh St., Dist. 1, HCMC Tel: 848 8210 012 Fax: 848 8296 502 Mr. Nguyen Van Minh, Administration Officer N/A Providing information, marketing, and exhibition services. 1990 State-owned enterprise State-owned 96 81 15
MAIN SERVICES • Organizing exhibitions, trade fairs, customer’s conferences• Advising and conducting advertising services• Providing information and organizing international trade fairs
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, private, and foreign companies Garment Ho Chi Minh City and Southern region The centre has served hundreds of clients, both domestic and foreigncompanies. It has been organizing exhibitions and customers’conferences annually. The centre has a good relationship withinternational advertising companies and international exhibitioncentres. Its main customers are Viet Tien Co., Binh Minh Co.,Truong Giang Co., etc.
COMMENTS The centre has established itself as one of the best knownorganizations in HCMC and Southern region. Aided by the HCMCCulture and Information Office, the centre is well equipped and hasgood operating conditions. Good relationships with domestic andforeign clients is also another advantage. However, the centre needsfurther investment in its infrastructure and equipment, improvedskills of its management staff, and widening international co-operative relations.
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PLANNING AND MARKETING DEPARTMENT (VIETNAM NATIONAL TEXTILE ANDGARMENT CORPORATION) GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
25 Ba Trieu Str., Hanoi Tel: 844 8265897 Fax: 844 8262268 Mr. Nguyen Thanh Tung, Expert N/A Marketing and Information Services 1955 (Vinatex was merged by the Textile Department and GarmentDepartment in 4/1995) State-owned enterprise Vietnam National Textile-Garment Corporation 10 10 0
MAIN SERVICES • Providing market research services• Providing business and production related information for textile-
garment companies• Organizing customer’s conferences• Collecting and processing market information for the garment and
fashion design industry. MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, private and foreign companies Textile and garment Nation-wide The Department has had significant results since its establishment:organizing annual textile-garment exhibitions, organizingconferences on garment technology and fashion design, anddeveloping international relationships with foreign partners.
COMMENTS The Department has been very successful in promoting marketingand information services among companies in the Garment & Textileindustry. The professional team is divided into specialized groupsresponsible for each sector of the market (both foreign anddomestic).
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THE TEXTILE- GARMENT ECONOMIC AND TECHNICAL RESEARCH INSTITUTE GENERAL INFORMATION Address 458 Minh Khai St. Hai Ba Trung Dist., Hanoi Telephone/Fax Tel : 844 8624025 Fax : 844 8622867 Contact Person and Title Nguyen Van Thong - Vice Director Address of Subsidiaries 345/128A Tran Hung Dao Str., Dist. 1 - HCM City. Main Service Area Scientific and Technological Research
Technology Transfer Training
Year Established 1969 Legal From State-Owned organisation Ownership Under Vietnam Textile-Garment Corporation. Total number of staff 125 Number of professional staff 98 Number of support staff 27
MAIN SERVICES • Transfer of textile and garment technology
• Conducts scientific research activities, re: textile-garment materials,new technology, and new products
• Undertakes experimental production of new textile-garment productsfrom silk, cotton and synthetic yarns.
• Establishes standards and methods of testing of textile-garmentmaterials
• Quality control and testing• Publishes information and documents related to textiles and garments• Provides short-term training courses for textiles-garment technical staff.
MAIN CUSTOMERS Companies Private and state owned, small and medium enterprises Sectors Textile, garment. City/ Region Hanoi, HCM City and other provinces in the North, the Centre and the
South of Vietnam. Results to date
The Institute has served more than 100 clients so far. It has completed 15national research projects, 2 projects supported by UNDP, and a numberof contracted research projects for textile-garment companies.
In addition, it has published monthly “Vietnam Textile-GarmentBulletin“”
COMMENTS The Institute is one of the biggest research organisations in the field oftextiles and garments in Vietnam.
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F. Advocacy Services 1. Demand and Supply of Advocacy Services
v Demand 5.31 Advocacy services are not very popular among garment manufacturers. However, thedemand for this service exists as can be seen from the establishment of garment associations.A great number of garment companies in HCMC have participated in the HCMC Textile-Garment & Embroidery Association and their numbers are growing. For instance, the numberof members of the HCMC Textile-Garment & Embroidery Association has increased from 82to 187. 5.32 In addition to associations located in Hanoi and HCMC, a number of associationshave been recently established in other cities and provinces such as the Garment Arts Club inHai Phong. The demand to join these organizations has increased, especially for fashionassociations and clubs.
v Supply 5.33 Although advocacy services are still not very popular among garment companies, anumber of support units have been set up in recent years. A typical example is the textile-garment associations in Hanoi, HCMC and Hai Phong. A number of garment clubs have alsobeen established, for instance, the club of young women directors in Hanoi, which supportssmall and medium sized garment companies in marketing, production management, businesstransactions and so on. 5.34 In addition, law consulting companies and lawyer’s associations are providing legalservices on production and business activities for many sectors, including the garment sector. 5.35 Also, findings from the survey show that advocacy services in the garment industryare emerging faster in the South, in line with the increasing number of garment companies,especially private ones in HCMC and the surrounding provinces. Associations, clubs and lawconsulting companies, all provide advocacy support to garment companies in HCMC. 5.36 In short, it is necessary to continue to strengthen advocacy services for garmentcompanies through existing and new associations, clubs and forums.
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2. Profiles of Service Providers LEGAL INFORMATION CONSULTING CENTRE
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
208 Dien Bien Phu, Dist. 3, HCMC Tel: 848 8203247 Fax: 848 8202402 Mr. Tran Minh Tien, Office Manager Da Nang City Legal Consulting 1996 State-owned enterprise State-owned 30 24 6
MAIN SERVICES • Providing consulting services on Investment Law,Corporate Law, Labor Law, International Business, Tax,Production Management.
• Providing information services related to Governmentpolicies.
MAIN CUSTOMERS Companies Sectors City/Region Results to date
Stated-owned and private companies, multi-nationals, JVs,100 percent foreign-owned companies Manufacturing, including Garments HCMC and Southern provinces Since its establishment, to date the centre has served about200 companies such as: Doc Lap Garment Company,Phuong Dong Garment Company, Nha Be GarmentCompany, Viet Thang Textile Company, Hiep Hung ShoesCompany.
COMMENTS Though it has been recently established, the centre hasshown significant results in the field of legal consulting. Ithas provided valuable information to a great number ofcustomers. It has a team of foreign trained qualified andexperienced lawyers. The centre also publishes a weeklyjournal: Legal Data Bank Information, which providesuseful information regarding Government laws and policies.In the near future, the centre plans to expand its businessrange to other consulting activities for garment companies.
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HO CHI MINH CITY TEXTILE-GARMENT-EMBROIDERY ASSOCIATION
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
51 Ben Chuong Duong Str., Dist. 1, HCMC Tel : 848 8293389/8293390 Mr. Nguyen Duc Hoan-President N/A Legal services, Information, Short Term Training, InternationalRelations, Loan Services 1987 Non-Government Organization Vietnam Chamber of Commerce and Industry 184 member units
MAIN SERVICES • Protecting and representing interests and legal rights for allmembers of the association.
• Providing legal information and government policies• Legal consulting regarding international business, tax, labor
law, customs• Providing financial assistance to members of textile-garment
companies• Organizing short term courses to improve qualifications for
member companies• Organizing monthly meetings for member enterprises.
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned and private companies. Textile, garment, embroidery HCMC and Southern provinces The members of the Association has increased from 82 initiallyto 184 in 1997, which are mostly textile-garment companies,namely: Tan Phu Cuong Garment Company, Sinh Viet GarmentCompany, Gia Dinh Textile-Garment Company, Sai Gon I, II,III companies, etc. The Association has helped a great numberof textile/garment companies to improve their staff’squalifications and management skills. It has also assisted manycompanies in introducing their products into foreign marketslike Sweden, Thailand, South Korea, USA, Taiwan and Japan.
COMMENTS Focusing on the textile-garment industry, the association hasgained a good understanding of the laws, policies and issuesrelated to the industry. The core competence of the associationlies in a team of experienced and qualified experts and lawyers.Many textile-garment companies are planning to join theAssociation.
In the near future, the association is going to expand itsoperations and improve its overall consulting quality.
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HAIPHONG GARMENT ART CLUB GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
18 Dinh Tien Hoang St., Hai Phong Tel: 8431 823809 Mr. Quang Nam, Club Manager N/A Providing information and advocacy services 1998 Social Association Hai Phong People’s Committee 50 40 10
MAIN SERVICES Organizing customer conferences, fashion shows & meetingsof garment enterprises and fashion designers.
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, private, joint-venture companies Garment Haiphong Since its establishment, the club has organized 1 customerconference and 3 fashion shows to support domestic fashiondesigners and garment companies.
COMMENTS The Club is a social association of garment companies as wellas individuals who are interested in the garment industry. It isone of 21 clubs of the Hai Phong People’s Committee. TheClub has supported many garment enterprises promoting theirproducts through organizing successful fashion shows. TheClub is going to open short-term training courses and toincrease the number of customer conferences in the comingyears.
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HAIPHONG GARMENT ASSOCIATION GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
17 Tran Hung Dao Str., Hai Phong Tel: 84 31 847005 Fax: 8431 845149 Mr. To Hoac, President N/A Advocacy services 1988 Social Association Hai Phong Scientific and Technical Union 25 15 10
MAIN SERVICES
Legally supporting garment enterprises and individuals
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, private, joint-venture companies Garment sector Hai Phong Supporting and promoting garment organisations andenterprises in their production and business activities.
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G. Financial Services 1. Demand and Supply of Financial Services
v Demand 5.37 Currently, the major financial services used by garment companies, including state-owned and private, are loan and auditing services. Loans are mainly provided by commercialbanks while auditing is conducted internally. In order to expand business activities, garmentmanufacturers are in need of the following financial services:
• Loans: Garment companies usually have a lack of capital, however, they can only getshort term loans from banks. This makes it difficult for them to operate, expand theirproduction facilities and pay interest. They have great demand for long term loansfrom banks and financial companies;
• Auditing: At present, auditing in garment companies is implemented internally.However, external auditing is expected to be in demand in the future;
• Leasing service: Most facilities and equipment in garment companies has beenpurchased from domestic or foreign suppliers. However, the purchase cost is quitehigh, especially for private SMEs. Thus, some garment companies have opted forleasing instead. Therefore, leasing is expected to be in high demand by garmentcompanies.
v Supply
5.38 Commercial banks: Provide loan services to garment companies. Major providers
are: Vietcombank, Incombank, etc. • Financial Textile-Garment Company: established in 1996 with the main function of
providing loan services. Its major clients are state-owned garment companies underVinatex and some private garment companies. The company has provided its clients withabout $300.000 or about 15 percent of the company’s total equity. Currently, thecompany plans to expand its activities as a financial intermediary to support garmentmanufacturers.
• Auditing companies: as mentioned above, in garment companies, the auditing process is
implemented internally. Nevertheless, with the appearance of auditing companies(domestic and foreign), providing high quality services, the use of external auditors willincrease among garment companies.
5.39 Although the use of financial services in the garment industry is not greatly used, thedemand for this service is quite high. In this context, financial service providers should beimproved to satisfy the requirements of garment companies. The recent promulgation of anumber of new policies and regulations by the Government will create opportunities forfinancial service providers to engage more actively in Vietnam’s garment sector.
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2. Profiles of Service Providers TEXTILE-GARMENT FINANCIAL COMPANY GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Service Area Year Established Legal Form Ownership Total number of staff Number of professional staff Number of support staff
41 Ben Chuong Duong Street, District 1, HCMC Tel: 84 8 823 1768 Fax: 848 821 6357 Mr. Thieu Si Trong, Vice Director 32 Trang Tien, Hanoi (Tel: 844 8257413) Financial Services 1997 State-owned Enterprise State-owned 25 20 5
MAIN SERVICES Making loans to textile and garment companies
MAIN CUSTOMERS Companies Sectors City/Region Results to date
Domestic companies, including companies under Vietnam NationalTextile Garment Corporation Garment, textile HCMC, Hanoi and Southern provinces The Company has extended loans to twenty domestic enterprisessince its establishment, lending up to VND 25 billion.
COMMENTS As a newly established company, Textile Garment FinancialCompany has been focusing on extending loans to textile andgarment companies. This specialization strategy facilitates thecompany in evaluating its customers, speeding up its loan services, and improving management quality.
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H. Research Services 1. Demand and Supply of Research Services
v Demand 5.40 From the results of the survey, it can be said that the demand for research service (indesign, material, technology, etc.) in the garment industry is not very high. Some of thereasons are as follows:
• Most garment companies are under subcontracts, using designs provided by foreignpartners;
• Garment materials, spare parts and auxiliaries are mostly imported;• The garment companies still do not see the important role of research and
development. 5.41 However, it is anticipated that the demand for research services in the garmentindustry will rapidly increase in the coming years when the market becomes morecompetitive and subcontracting is gradually replaced with direct export. Specifically,garment companies will need to research new designs, be innovative in using technology andmanage their operations more effectively to improve productivity and lower product prices.
v Supply 5.42 The main kinds of research services provided for garment companies are in: (1)garment technology, (2) garment materials, (3) design, (4) others depending on therequirements of customers or objectives of Government projects. 5.43 However, findings from the survey show that research services are not satisfying thedemands of the garment industry. The following are the main reasons for this situation:
• There are a limited number of providers in this market. Most of them are newlyestablished, inexperienced, and lack professional research experts. Also, their capitaland technological capacities are limited;
• Demand for and profit from this service are not attractive enough;• Research programs funded by the Government are not effective and practical enough
to apply in production. 5.44 Up to now, the Economic and Technological Institute of Textile-Garments, FadinFashion Design Institute and the Textile-Garment Technology Faculty of Hanoi University ofTechnology are the main organizations supplying this service for the garment industry. 5.45 It can be concluded that research services still do not satisfy the development demandof the garment industry and should be strengthened in the coming years.
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2. Profiles of Service Providers VIETNAM FASHION DESIGN INSTITUTE (FADIN) GENERAL INFORMATION Address 2 Le Thanh Tong St. Hoan Kiem Dist., Hanoi Telephone/Fax Tel : 844 8257314 Fax : 844 8257554 Contact Person and Title Mrs. Pham Thi Xuan - Research Dept. Manager Address of Subsidiaries 41 Chuong Duong St. - Dist. 1 - HCM City. Main Service Area Fashion Design, Marketing, Training ,
Research, Technology Transfer Year Established 1995 Legal From State Owned Company Ownership State Owned Total number of staff 64 (Hanoi : 42; HCMC : 22) Number of professional staff 32 Number of support staff 32
MAIN SERVICES • Carrying out research on fashion design
• Marketing textile materials and garment accessories for new fashions• Providing information on fashion design• Co-operating with the Technical Schools and Colleges in fashion
design and fashion technology training • Participating in the preparation of the development strategy of garment
industry for the period 2000 - 2010
MAIN CUSTOMERS
Companies Local private and state owned companies, primary and secondary schools. Sectors Garment companies and schools City/ Region Hanoi, HCMC, Danang, Hue and other provinces. Results to date
Since its establishment in 1995, the Institute has served about 30companies and organisations. It has carried out 6 research projects, onsubjects such as: fashion materials, fashion design for primary andsecondary schools, design of labor protection clothes, using local fabricsfor designing ethnic minority fashion, etc. In cooperation with otherinstitutes and colleges, it has also provided training courses in fashiondesign and garment technology.
COMMENTS
Before 1995, the predecessor of FADIN was the Research Centre ofgarment technology. Since 1995, it has expanded its activities to variousfields, including fashion design, marketing, training and technologytransfer. It has established itself as one of the biggest companiesspecializing in fashion design in Vietnam.
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FADIN FASHION DESIGN INSTITUTE (HCMC BRANCH)
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
41 Ben Chuong Duong, Dist. 1, HCMC Tel: 848 8297226 Fax: 848 8213245 Ms. Dang Thi Minh Hanh, Managing Director 2 Le Thanh Tong Str., Hoan Kiem Dist., Hanoi Fashion Design 1996 State-owned enterprise State-owned 24 22 2
MAIN SERVICES • Fashion Design for garments• Fashion Training
MAIN CUSTOMERS Companies Sectors City/Region Results to date
Stated-owned and private companies Garment Ho Chi Minh City and Hanoi Since its establishment in 1996, the company has served manyGarment Companies such as: Sai Gon Garment Company 3, VietTien Garment Company, Nha Be Garment Company, Nam TienGarment Export Company.
COMMENTS As a fashion design institute, FADIN has been very successful inproviding fashion design services for garment companies. Thestyles the company have designed have become very popular inVietnam. FADIN has also established very strong relationshipswith customers and has organized many customer conferences. Thecompany has a very professional team of young, creative andenthusiastic fashion designers. In the near future, FADIN plans toconduct training services on fashion design.
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THE TEXTILE- GARMENT ECONOMIC AND TECHNICAL RESEARCH INSTITUTE GENERAL INFORMATION Address 458 Minh Khai St. Hai Ba Trung Dist., Hanoi Telephone/Fax Tel : 844 8624025 Fax : 844 8622867 Contact Person and Title Nguyen Van Thong - Vice Director Address of Subsidiaries 345/128A Tran Hung Dao Str., Dist. 1 - HCM City. Main Service Area Scientific and Technological Research
Technology Transfer Training
Year Established 1969 Legal From State-Owned organisation Ownership Under Vietnam Textile-Garment Corporation. Total number of staff 125 Number of professional staff 98 Number of support staff 27
MAIN SERVICES • Transfer of textile and garment technology
• Conducts scientific research activities, re: textile-garment materials,new technology, and new products
• Undertakes experimental production of new textile-garment productsfrom silk, cotton and synthetic yarns.
• Establishes standards and methods of testing of textile-garmentmaterials
• Quality control and testing• Publishes information and documents related to textiles and garments• Provides short-term training courses for textiles-garment technical staff.
MAIN CUSTOMERS Companies Private and state owned, small and medium enterprises Sectors Textile, garment. City/ Region Hanoi, HCM City and other provinces in the North, the Centre and the
South of Vietnam. Results to date
The Institute has served more than 100 clients so far. It has completed 15national research projects, 2 projects supported by UNDP, and a numberof contracted research projects for textile-garment companies.
In addition, it has published the monthly "Vietnam Textile-GarmentBulletin"
COMMENTS The Institute is one of the biggest research organisations in the field oftextiles and garments in Vietnam.
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MARKET RESEARCH CENTRE (CESAIS)
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
17 Pham Ngoc Thach Str., Dist. 3, HCMC Tel : 848 8231589/8231590 Fax : 848 8231591 Ms. Pham Ngoc Huong, Manager. N/A Market Research 1993 State-owned Research Institute Under the Economics University in HCMC 17 15 2
MAIN SERVICES • Market Research• Economic Research• Pre-feasibility and feasibility studies for investment projects• Training in market research and business management.
MAIN CUSTOMERS Companies Sectors City/Region Results to date
JV, 100 percent foreign, and local companies (state-owned and private), limited liability companies. Manufacturing, including garment HCMC The company has served hundreds of foreign and domestic clients. Itsmain customers are: Pepsi Cola, EXOTISSIMO, VISO PowderCompany.
COMMENTS As a research institute belonging to HCMC University of Economics,CESAIS was the first licensed market research firm in Vietnam. Sinceits establishment, the centre has provided a wide variety of services,including research, training, etc. The centre has a strong team offoreign trained highly-qualified and experienced researchers and hasgained a good reputation among its customers.
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FACULTY OF TEXTILE, GARMENT & FASHION DESIGN (HANOI UNIVERSITY OF TECHNOLOGY)
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
Dai Co Viet Road, Block C5-217, Hai Ba Trung Dist., Hanoi Tel : 844 8692401 Fax: 844 8696702 Tran Minh Nam, Dean of Faculty Education &Training, Research, Technology Transfer and Consulting 1956 State-owned university Under Ministry of Education & Training 43 41 2
MAIN SERVICES • Undergraduate programs (5 years) specialized in Textile, Garment andFashion design.
• Technical college programs (3 years) specialized in Garment• Conducting research on garment technology, fashion design, finishing
technology, new materials, spinning, weaving, knitting• Postgraduate programs (Master and PhD) in Garment and Textile. Technology
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned and private companies, JVs, 100 percent foreign-ownedcompanies, research institutes, technical colleges. Garment, textile, fashion design, spinning, knitting, weaving Nation-wide The Faculty has trained more than 2000 professionals, engineers andtechnical bachelors of which 70 are specialized in garment & fashion design,240 are garment bachelors, 9 M.Scs and 2 Ph.Ds. The Faculty has alsoconducted successful research on vegetable fibres (VIE/86/010) for UNDPduring 1987-1991, two other projects for UNDP (VIE/86/014 &VIE/86/015), 3 training courses in design techniques for UNIDO (1998) anda project in natural dyestuff for OXFAM Hong Kong - Quebec.
COMMENTS The Faculty of Textile, Garment and Fashion Design is the first and biggesttraining organisation specialized in textile, garment & fashion design inVietnam. Moreover, the faculty has also organized training programs attechnical college level and short-term training courses for local garmententerprises. The faculty’s teaching staff has 43 professionals including 1professor, 2 associate professors, 15 Ph.Ds. and 5 masters. The garment andfashion design section under the faculty consists of 13 staff of which 2 arePh.D. trained abroad, 3 masters, 7 engineers and 1 technician at secondarylevel. The faculty’s core competencies lie in its very strong relationshipswith Government organisations such as the Ministry of Industry, VietnamNational Textile & Garment Corporation, People’s Committees of differentcities and provinces, research institutes, etc., and with garment-textileenterprises on a nationwide scale. International relationships with foreignuniversities has also increasingly developed.
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I. Procurement Services 1. Demand and Supply of Procurement Services
v Demand 5.46 Most of the garment companies interviewed agree that procurement services are verynecessary and they all have a demand for a stable and reliable supply of machines,equipment, spare parts and accessories. However, most of the garment companies have todepend on foreign suppliers, since products provided by domestic suppliers do not satisfy therequirements of garment companies producing for export, especially for high qualitygarments. Garment companies also have demand for garment accessories, for example,zipper, button, thread, labels. They need to be high quality and delivered in a timely fashion.
v Supply 5.47 The supply of garment equipment is mainly fulfilled by foreign companies throughtheir representative offices in Vietnam located in Hanoi and Ho Chi Minh City like Juki,Brother (Japan), Samwon, Kolon, Tuna Sima (Korea) and Tung Shing (Hong Kong) orthrough trading companies, which act as intermediaries. These companies also provide spareparts and accessories for their equipment. • Fabrics are either supplied by foreign partners in subcontracts or purchased by
Vietnamese garment manufacturers. Home-made fabrics only satisfy 20 percent of thedemand for the export garment industry.
• Garment accessories are supplied by joint ventures and wholly foreign-owned companies.
There are three PE padding manufacturers - one in the North and two in the South, twointerlining manufacturers in the South, two thread manufacturers, and some othermanufacturers of buttons, zippers, and labels.
• Spare parts are supplied mainly by foreign equipment manufacturers and partly by local
factories. There are 3 spare part manufacturers, one in the North and two in the South.However, the product quality of local factories cannot satisfy the demand of garmentcompanies so most of the sophisticated spare parts still have to be imported.
5.48 In the coming years, the garment industry needs to supply high quality fabrics,accessories and spare parts for production for both domestic and export markets. Thepercentage of home-made fabrics is estimated to increase to 40 percent to satisfy the demandof garment companies. In short, to satisfy the increasing demand for procurement services inVietnam, domestic suppliers need to increase both in quantity and quality.
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2. Profiles of Service Providers HOCHIMINH CITY JUKI SERVICE CENTRE GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Service Area Year Established Legal Form Ownership Total number of staff Number of professional staff Number of support staff
14-16 Tran Hung Dao Street, District 1, HCMC Tel: 848 836 8881 Fax: 848 836 9399 Mr. Pham Van Phuc, Director G 23C Thanh Cong, Hanoi Providing garment equipment and maintenance services 1995 State-owned enterprise State-owned 20 16 4
MAIN SERVICES • Providing garment machines, equipment and spare parts• Providing maintenance services• Technical consulting
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State, private, joint venture and foreign companies Garment HCMC, Hanoi and Southern provinces The Company has served hundreds of garment companies in Vietnamsince its establishment, for example YASUDA Ltd. Co., WonderfulSaigon Garment Ltd. Co., Viet Thang Garment Company, etc. CurrentlyJUKI is one of the most highly respected companies in terms of itsproducts and service quality in the market thanks to its:• Good management skills &• Highly-skilled staff.
COMMENTS JUKI is a company specialized in selling machines and equipment,providing maintenance services, and providing consulting in technical andproduction management for the garment industry. The company’s successresults from the excellent quality of its services and equipment.Furthermore, it has received strong support from technical experts inJapan, South Korea, and Singapore. It has also established a widenetwork of business relationships with many garment companies in theregion.
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HANOI EVC POLYESTER PADDING MANUFACTURING AND TRADING J.V. COMPANY LTD. GENERAL INFORMATION Address Bo Str., Sai Dong - Gia Lam - Hanoi Telephone/Fax Tel : 844 8276929/8276930 Fax: 8276933 Contact Person and Title Mr. Nguyen Van Hung - Director Main Service Area Manufacturing polyester padding Year Established 1993 Legal Form Joint Venture Company Ownership Joint Venture Total number of staff 34 Number of professional staff 14 Number of support staff 20
MAIN SERVICES Manufacturing and selling Polyester Padding to garment companies
MAIN CUSTOMERS Companies JVs, 100 percent foreign-owned, local private and state-owned. Sectors Garment City/ Region Ha Tinh and other provinces in the North Results to date
After 5 years of production, the company has manufactured about
40 millions meters with the width 44/45 inches and the weight of 40 ÷300g/m2.
COMMENTS This is one of the 3 companies producing Polyester Padding to supplygarment companies in Vietnam. It main customers are garmentmanufacturers in the North. The company is famous for its highlycompetitive products.
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GIA LAM SEWING MACHINE COMPANY GENERAL INFORMATION Address Bo Str., Sai Dong Town, Gia Lam Dist., Hanoi Telephone/Fax Tel : 844 827564 Fax : 844 8276565 Contact Person and Title Mrs. Nguyen Thi Thai - Deputy Director. Address of Subsidiaries : N/A Main Service Area Manufacturing Sewing Machines, Accessories, Spare-parts Year Established 1977 Legal From State Owned Ownership Under Vietnam Textile-Garment Corporation. Total number of staff 172 Number of professional staff 142 Number of support staff 30
MAIN SERVICES • Manufacturing and trading sewing machines and accessories.• Designing and installing electric networks and sewing machines in
garment companies.• Providing after-sale services.
MAIN CUSTOMERS
Companies JVs, foreign companies, and local companies (State and private).
Sectors Garment City/ Region Hanoi, HCM City, Hai Phong, Da Nang, Tien Giang, Vinh Long. Results to date
The company has served several local, joint venture and 100 percentforeign invested companies in Vietnam
COMMENTS The Hanoi sewing machine company has a good reputation for supplyingsewing machines and accessories in a timely and professional manner atcompetitive prices.
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TRADE SERVICE COMPANY NO. 1
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
2 Mai Dong Str., Hai Ba Trung Dist., Hanoi Tel : 844 8621228 Fax: 844 824620 Mr. Nguyen Dinh Hy, Director. N/A Procurement services Import/Export 1995 State-owned Under Vietnam National Textile Garment Corporation 80 30 50
MAIN SERVICES • Providing raw materials, fabrics, accessories, chemicals to textile andgarment companies.
• Domestic trading in textile and garment products• Promoting import-export activities of garment companies
MAIN CUSTOMERS Companies Sectors City/Region Results to date
Local private and state-owned, co-operatives, households, tradevillages. Textile, garment. Hanoi, HCMC, Hue, Da Nang, Ha Tay, Nam Dinh, and some otherprovinces. Total turnover in 1997 reached VND 83 billion and is expected toreach VND 100 billion in 1998. The company’s biggest customers are member companies of theVietnam National Textile Garment Corporation.
COMMENTS The company has become a very important supplier of raw materialsfor garment companies supplying materials such as cotton, man-madefibres, chemicals, and accessories. It enjoys a high reputation amongits business partners for its products’ quality.
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HANOI NEEDLES FACTORY
GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
Thanh Liet, Thanh Tri, Hanoi Tel : 844 8841337 Fax: 844 825334 Mr. Nguyen Van Manh, Vice Director. N/A Providing needles and accessories 1983 State-owned Hanoi Department of Industry 230 200 30
MAIN SERVICES • Needles for sewing machines• Knitting needles• Needles and pins for jute industry• Accessories for sewing and weaving machines
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned and private companies. Textile and garment. The North and Middle of Vietnam The company has been providing annually 50,000,000 needles forsewing machines; 6,000,000 knitting needles; 40,000,000 hand needlesand 20,000,000 pins for jute industry.
COMMENTS This is one of the two needle companies in Vietnam. Financed byGermany in 1983, the company has equipped its production line withstate-of-the-art Japanese equipment. With good quality and reasonableprices, the company’s products are highly respected in the domesticmarket and are compatible with foreign products from Japan, SouthKorea and Taiwan.
In the near future, the company plans to diversify its product range,increase investment capital to be able to improve its products’ qualityand increase market share.
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VIET TIEN TUNG SHING SEWING MACHINE CENTRE GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
27-33 Tran Hung Dao St., Dist. 1, HCMC Tel : 848 8293362 Fax: 848 8293358 Mr. Nguyen Thanh Tan, Deputy Manager. 9 floor, Hanoi Tungshing Square, 2 Ngo Quyen St., Hoan Kiem Dist.,Hanoi City. Tel. 844 8266296/8266297 Fax: 844 8266266 Providing equipment and accessories 1985 (Hanoi Branch: 1991) Join-venture Joint venture between Viet Tien and Tung Shing 1000 900 100
MAIN SERVICES Providing:• Sewing machines, cutters, pressers, irons• Accessories• Maintenance services
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, private, joint-venture, 100 percent foreign ownedcompanies. Garment. Vietnam, Laos, Cambodia The company has been providing sewing machines, accessories andmaintenance services to many garment companies in Vietnam andneighboring countries.
COMMENTS Viet Tien - Tung Shing is one of the leading suppliers in sewingmachines and other machines for the garment industry in Vietnam. Thecentre is currently running as a monopolised distributor for 7 domesticcompanies and 10 foreign suppliers. Moreover, the centre is alsoproviding door-to-door maintenance services and other types ofservices to satisfy customers’ orders. In addition to the head office inHCMC, the centre also has agents and maintenance workshops inHanoi, Nha Trang, Hai Phong, and Da Nang.
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VIET PHAT JOINT VENTURE COMPANY GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
7 Mai Khoi St., Tan Binh Dist., HCMC Tel: 848 8640 800/8445 089 Fax: 848 8645 085 Mr. Nguyen Thanh Hung, Chief of Technical Division N/A Providing Mex 1994 Joint-venture JV between Viet Tien Co. and Development Industrial Co. (Taiwan) 200 190 10
MAIN SERVICES Providing Mex
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, private, and foreign investment companies Garment Ho Chi Minh City The company has served hundreds of clients, both domestic andforeign companies. Main customers: Nha Be Garment Co., Phu Nhuan Garment Co.,Tan Chau Ltd. Co., Vinh Loi Ltd. Co.
COMMENTS With a capital of US $1 million, strong human resources withexperienced foreign specialists, and broad international relationships,the company enjoys a high reputation among its clients - garmentcompanies. The company provides both packaged and client-customised services
The company is considering expanding its market share andimproving its services’ quality.
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COATS TOTAL PHONG PHU JOINT VENTURE COMPANY GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
Thu Duc Dist., HCMC Tel: 848 8969 465/ 8969 466 Fax: 848 8969 464 Mr. Khieu Thien Thuat, Director 378 Minh Khai, Hanoi Providing thread 1989 Joint-venture Phong Phu Co. and Coats Total 480 460 20
MAIN SERVICES Providing threads of all types MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, private, and foreign investment companies Garment Ho Chi Minh City Until now, the company has served about 200 clients. It was theonly company which got the Golden Prize in the Vietnam Contest ofQuality in 1996. Its products are diversified and varied in coloursand have been awarded ISO 9002 standard. Main customers: Phuong Dong Garment Co., Huu Nghi, WonderfulSai Gon Garment Ltd. Co., Exported Garment Enterprises(VITEXCO)
COMMENTS With its high reputation, the company now has a strategy ofwidening its delivery network for both domestic and foreigncompanies.
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DANG KHOA COMPANY GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
15B Nguyen Thai Binh, Ward 4, Tan Binh Dist., HCMC Tel: 848 8449 996 Fax: 848 8460 701 Mr. Nguyen Tan Ky, Manager of Administration Office Showroom: 565 Hoang Van Thu, Tan Binh Dist., HCMC Providing accessories for sewing-machines 1996 Limited Company Private 18 14 4
MAIN SERVICES • Providing accessories for sewing-machines• Providing irons, boilers• Maintaining equipment and machines• Consulting on equipment operating techniques for garment
companies.
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, limited liability companies Garment Ho Chi Minh City Since its establishment, the company has served about 50 companiesin a number of sectors. Main customers: Son Kim Ltd. Co., Tan Minh Ltd. Co., QuangMinh Ltd. Co.
COMMENTS Founded in 1996, Dang Khoa Co. has supplied accessories forsewing-machines for several garment companies. Services providedby the company are either offered in packaged form or throughspecialists. The company has a strong team of professional staff, alot of experience, and wide relationships with customers. The company is planning to focus on the maintenance sector andpenetrate new markets, both domestic and foreign.
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SEWING MACHINES’ ACCESSORIES MANUFACTURING JOINT VENTURE COMPANY GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
7 Mai Khoi, Tan Binh District, HCMC Tel: 848 8645 082/ 8645 333 Fax: 848 8645 085 Ms. Truong Thi Mai, Manager of Administration Office N/A Providing sewing-machine accessories 1995 Joint-venture Joint venture between Viet Tien Co. and Tung Shing Co. 160 150 10
MAIN SERVICES Providing sewing-machine accessories
MAIN CUSTOMERS Companies Sectors City/Region Results to date
State-owned, foreign, and limited liability companies Garment Ho Chi Minh City The company has provided accessories for hundreds of garmentcompanies. Main customers: Doc Lap Garment Co., Nam A Garment Co., HoaBinh Garment Co.
COMMENTS As a joint venture with a Hong Kong partner, the company hasstrong financial and human resources. This contributes to itsremarkable success. Its wide international relationships helpgenerate potential markets for the company. The company provideshigh quality products, both packaged and customized.
The company is planning to diversify its accessories for the garmentindustry.
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VICO MOOLSAN COMPANY GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
Bien Hoa Industrial Zone, Dong Nai Province Tel: 848 836 226/ 836 227 Fax: 848 836 228 Mr. Pham Van Tuan, Director Assistant Duong Xa, Gia Lam Dist., Hanoi Manufacturing 1993 100 percent foreign investment Korea Moolsan Ltd. Co., South Korea 160 130 30
MAIN SERVICES Manufacturing padding, quilted padding, comforters, bedcovers,mattresses
MAIN CUSTOMERS Companies Sectors City/Region Results to date
Foreign agents and 100 percent foreign investment companies Garment companies and households The whole country Since its establishment, the company has provided products to 100percent foreign investment companies, foreign agents, and somelocal garment companies. The company also sells comforters,bedcovers, and mattresses to households.
COMMENTS Besides the main office in Dong Nai, it has an agent in Gia Lam,Hanoi.
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HANOI EXPORT FEATHER PROCESSING PLANT GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
Dinh Nam, Thanh Tri Dist., Hanoi Tel: 84-8-8625 551 Fax: 84-8-8621 776 Mr. Dang Dinh Luan, Deputy Manager N/A Manufacturing and processing feathers for garment products 1982 State-owned enterprise Ministry of Agriculture and Rural Development 90 38 52
MAIN SERVICES • Processing feathers for export• Providing feather products to domestic garment market
MAIN CUSTOMERS Companies Sectors City/Region Results to date
Foreign companies Garment Japan, Taiwan, Germany, France, and Northern region The company annually exports about 50-100 tons of feathers.
COMMENTS Using German production lines, the company’s output could reach400 tons per year. However, presently it can only export only 50 -100 tons per year because of the lack of market and customers.
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NHATRANG GARMENT MATERIAL COMPANY GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Services Areas Year Established Legal Form Ownership Total Number of Staff Number of professional staff Number of support staff
2 Nguyen Thien Thuat St., Nha Trang City Tel: 84 58 822462/84 58 822105 Fax: 84 58 821911 Mr. Dang Trang, Director Production and trading of garment material 1987 State-owned Department of Industry - Nha Trang People’s Committee 600 570 30
MAIN SERVICES • Providing garment companies with garment accessories such aszippers, sewing thread, elastics, buckles, interlining and buttons
MAIN CUSTOMERS Companies Sectors City/Region Results to date
Private and state-owned companies Garment companies and bags, sacks, tents markers Mainly Hanoi and HCM City From 1987-1998, the capacity of zipper production has grown from500,000 meters to 20 million meters per year. Annual turnover isVND 26.3 billion.
COMMENTS Has a reputation for the high quality of its products. They areexported to Japan, Australia, Germany, Italy, and Pakistan.
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J. Investment Consulting Services 1. Demand and Supply of Investment Consulting Services
v Demand 5.49 Interviews with senior managers of over 40 garment companies show that the use ofinvestment consulting services is generally not popular. However, some of them expressedinterest in this service due to the limited number of staff available in garment companies whoare knowledgeable in investment projects and financial and economic calculations. 5.50 In fact, the demand for investment in technology and equipment has become pressingrecently, because product quality in Vietnamese garment companies is restricted due toobsolete technology and equipment. Therefore, garment companies need consulting serviceson line innovation, activity expansion and on how to establish new production units. So far,there have been some investment projects which have received consulting from outsideexperts.
v Supply 5.51 Although they are relatively new, in recent years, investment consulting services havegenerally satisfied garment companies. Service organizations provide investment consultingservices in a wide range of areas such as the formulation of investment projects, financialanalysis and the legal aspects of investment, etc. 5.52 The main organizations providing this service to garment companies are state-ownedsuch as the Economic and Technological Institute for Textiles and Garments and someconsulting centres for investment in textile-garment corporations. 5.53 In addition, there are some organizations which have provided consulting services oninvestment projects for garment companies eg: Concetti and Investconsult. 5.54 In short, the demand for investment consulting services is anticipated to increaserapidly in the future and service organizations in this area need to improve themselves tosatisfy this increasing demand.
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2. Profiles of Service Providers CONSULTANCY CENTRE FOR INVESTMENT AND TECHNOLOGY DEVELOPMENT INTEXTILE-GARMENT INDUSTRY (CINTECH) GENERAL INFORMATION Address 102 Lac Trung St, Hai Ba Trung Dist., Hanoi Telephone/Fax Tel : 844 8213282 Fax : 844 8213262 Contact Person and Title Mr. Chu Thanh Quy, Director Main Service Area Investment Consulting, Technology transfer Year Established 1997 Legal Form Joint stock company Ownership Private Total number of staff 14 plus 10 part-time associates in Hanoi and HCM City Number of professional staff 12 Number of support staff 2
MAIN SERVICES • Investment Consulting: market research, feasibility studies, projectformulation and appraisal
• Technology transfer: development of new technology, new productsand new organization methods
MAIN CUSTOMERS Companies Private, state-owned and foreign companies Sectors Garment, textile, embroidery City/ Region Hanoi, HCMC, Danang, Taipei (Taiwan) Results to date
Since its establishment, the Centre has served about 10 companies (bothforeign and domestic), for example Golden Frank, Taya from Taiwan, DaNang Textile-Garment company, Thanh Son Company, My An Co. Ltd.,Thang Long Garment Company, Hanoi Industrial Canvas TextileCompany, Texgamex Saigon.
COMMENTS As a specialized organisation in the textile-garment investmentconsultancy field, its main activities so far have been: formulatinggarment production lines, installing projects for Texgamex Saigon,advising Da Nang garment company, advising Thang Long garmentcompany in installing dyeing-sizing machines for Denim fabric, andproviding training courses on ISO 9000 standards for garment companies.CINTECH has also participated in the preparation of the developmentstrategy of the Vietnam Textile-Garment Industry for 2000-2010. Itsprofessional staff and associates have acquired numerous skills andexperience in the textile-garment area.
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INDUSTRIAL PROPERTY COMPANY (INVESTIP) GENERAL INFORMATION Address Telephone/Fax Contact Person and Title Address of Subsidiaries Main Service Area Year Established Legal Form Ownership Total number of staff Number of professional staff Number of support staff
31 Han Thuyen Street, District 1, HCMC Tel: 848 829 2400 Fax: 848 822 8603 Ms. Nguyen Thi Bich Thuy, Assistant Manager 1Bis Yet Kieu, Hanoi Investment, Business and Technical Consulting 1998 State-owned Enterprise State-owned 60 56 4
MAIN SERVICES Providing the following services:• Investment consulting• Technique consulting• Business consulting• Pattern and brand registration• Publishing Vietnamese Business Bulletin
MAIN CUSTOMERS Companies Sectors City/Region Results to date
Domestic and foreign invested companies. Many sectors, including garment Hanoi and Ho Chi Minh City The Company has served hundreds of clients since its establishment,many of them are garment companies, for example Binh Minh GarmentCo., Garment Company 20, Saigon Garment Import - Export Co., etc..
COMMENTS Although it has been recently established, INVESTIP has been operatingeffectively and efficiently and seeing significant success. The company’smain competencies lie in its high quality service, a strong team ofprofessionals including 6 graduates from Western Europe, 20 graduatesfrom EU, a strong team of external consultants, and a flexible combinationof all business sectors, which creates excellent customer services atreasonable prices.
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K. Conclusions 5.55 Through interviews with over 70 garment manufacturers and service providers in theNorth, the Centre and the South in Vietnam, the team has come to the following conclusion:the Vietnamese garment industry, as a labor intensive and export driven industry, has greatpotential for development, but presently faces a lot of obstacles. It needs to improve itscompetitiveness in terms of quality, productivity, price, etc. in order to maintain and expandits market share in foreign markets, especially in non-quota markets and to gradually replacethe present processing scheme by direct exporting under FOB. 5.56 In the framework of the survey, the study focused on the status of demand and supplyof support services in the garment sector, identifying constraints in the sector with a view toimproving the range and quality of support services to garment manufacturers, especiallyprivate ones. Some conclusions and recommendations are as follow. 5.57 Except for the training and education area, most the service providers in the garmentsector are not specialized organisations for the garment industry only, rather they operate in awide variety of sectors. 5.58 Private SME companies, especially in rural and remote areas, though large inquantity, operate in a less favorable environment and enjoy fewer support services comparedwith state companies. v Education and training
5.59 Results from the survey show that the current demand for education and trainingservices is high and is expected to increase rapidly in the future when production expands,direct export replaces the current processing scheme, and access to non-quota marketsincreases and gradually replaces traditional quota markets. 5.60 Some of the reasons for the inefficiency of current training institutions are (1)teachers from training institutions are not equipped with sufficient knowledge and skills forthe garment industry; (2) the training curricula and teaching methods are theoretical, out ofdate and not suitable for the practical requirements of garment companies; (3) practicalmachines and teaching aids are obsolete and have not been adequately invested in; and (4)training programs and certifications are still not standardized and vary among differenttraining institutions. 5.61 The results from the survey also show that the demand for training for different levels(eg: managers, supervisors, technicians, designers, workers) differs. 5.62 The biggest training demands cited by managers are in: strategic management,production management, TQM, marketing management and financial management. 5.63 The demand for technician and supervisor training (on production line, productquality, and repair and maintenance) seems to be very important among companiesinterviewed. The reasons cited are: (1) technicians do not have specialized training in thegarment sector as most were trained as general or mechanical engineers; (2) it is difficult forrural companies to purchase and service/repair garment machines because suppliers are onlylocated in big cities, equipment warranties are short (6-12 months), and maintenance fees are
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as high as $5 an hour; (3) supervisors are often line workers who have been promoted butnever received management training; and (4) there has not been any standard trainingcurricula for supervisors. 5.64 Training for workers is also very important and training institutions have notdeveloped proper and standard training programs for workers. The training courses coverbasic skills needed in each production stage but overlook related skills and comprehensiveknowledge which is important to enhance workers’ productivity. The problem with this typeof training is that while a worker can do his assigned job, he cannot take care of other jobs inthe production line when his colleague is absent. The situation is quite different amongJapanese garment manufacturers. 5.65 Design training, including garment design and pattern design, is also insufficient inVietnam. The designs and fashions created by FADIN, for instance are mainly for fashionshows and not for use by garment manufacturers who are targeting foreign markets.Furthermore, many of the imported design systems (CAD/CAM) that are available in-countryare still not in full operation due to the fact that the users of such systems were not adequatelytrained in how to use them. This has resulted in a considerable waste of resources. v Information provision and consulting
5.66 The demand for information and consulting services is high among companiesinterviewed, but to date no consulting organisations have focused on the Vietnamese garmentsector. The present information centres, the Textile-Garment Economic and TechnicalCentre and the Market-Information Dept. of VINATEX, for example, focus on serving state-owned companies under Vinatex, and most of the information they offer is not useful togarment manufacturers. Private SMEs have to depend mostly on secondary sources such asindustry publications, newspapers, periodicals, textile-garment bulletins, or personal contacts.The SMEs support centre of the VCCI also provides general services to various sectors(including the garment industry). 5.67 Information about design and fashion trends (i.e., material, colors, styles) is alsoinadequate for garment companies. Such information is especially important when they shiftto FOB business. 5.68 Information about suppliers of machines, materials and accessories is also in highdemand by garment companies interviewed. Though suppliers are often available,manufacturers do not know how to select the most appropriate equipment, fabrics, oraccessories.
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ANNEX 1: SWOT ANALYSIS OF VIETNAMESE GARMENT INDUSTRY
STRENGTHS
Country/ industry wide:• Industry generates employment• High quality labor force• Low labor costs for employers• Competitive pricing of exports• Minimum investment necessary for
owners• EU quota allocation• Relatively efficient transport & shipping
facilities• Workable system of export processing• Some factories are well-equipped & have
well trained workers
In private companies visited:• Larger companies have skilled
workers & relatively modernequipment
• Managers are keen to upgradetheir skills
• Limited investment is necessarydue to widespread use of usedequipment
WEAKNESSES Country/ industry wide:• Local value addition is small• Reduction in orders due to Asian crisis• Over dependence on foreign agents: little
contact with final customers• Almost non-existent local textile industry• Limited number of local fabric &
trimmings suppliers• Shortage of skilled technologists,
supervisors, quality controllers etc.• Low labor productivity• Limited training given, especially for
middle management• Current training facilities too theoretical• More factories opening but fewer orders
coming in -" Less honey, more flies"• Limited experience in generating own
designs & limited product range
In private companies visited:• No access to advantages enjoyed by SOEs
eg: bank loans, ODA, EU quota allocation,participation in trade fairs etc.
• Lack of know how in design & productiontechniques, procurement, management ,marketing & sales
• Production dominated by CMT - thereforelow value added
• Majority doing sub-contracting work forSOEs or large private companies
• No adequate garment association torepresent interests
• Factories are cramped & lack modernequipment
• Managers wary of investing in staff trainingdue to high staff turnover
• Strategic planning impossible due to ad hocnature of orders
OPPORTUNITIES Country/ industry wide:• Trade agreement with USA will open new
markets• More local suppliers of fabrics and
accessories are establishing locally• Increasing transfer of skills from buyers to
manufacturers• Opportunity to improve efficiency in
CMT and move up value chain into FOB• Local design capacity increasing• Opportunity to produce FOB for domestic
market
For private companies:• Staff training = improved
efficiency = increasedproductivity = financial benefits
• Improved market links =increased orders = financialbenefits = upgrading of skillsand equipment = move up valuechain
THREATS Country/ industry wide:• China’s entry into WTO increases
advantage over Vietnam• Ending of quota system under Multi-
Fiber agreement in 2005 will lead tointensified global competition
• NAFTA/AFTA will open up tradebarriers in Asia & stimulate regionalcompetition
For private companies:• Reduced orders, inability to get loans &
quota = limited investment in equipment &staff = low productivity = difficulty stayingsolvent
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ANNEX 2: AN OVERVIEW OF THE KEY PROBLEMS FACING PRIVATE GARMENT MANUFACTURERS:Fishbone Diagrams
MPDF Staff
Diagram 1: Inefficient Production Organisation
INEFFICIENTPRODUCTION
ORGANISATION
Poor resourcemanagement
Problems withfactory layout
Operations manager/ engineerslack knowledge of basic
principles
Producers do notknow where to gettechnical advice
Firm lacks capital
Re: manufacturing layout
Re: workflow/through put/ sequencing
Always changing set up due to changing orders
Lack knowledge of effective layout
Re: production planning & control
Lack space Re: quality assuranceRe: manufacturing functions
Re: material utilisation
Poor inventorycontrol
Lack knowledgeof appropriate suppliers
To invest in newequipment
To rent larger premises
Service providersdo not market their services properly
Producers don’t knowwhere to look
Relevant assistance notavailable
Poor production planning
Lack knowledgeof machine set up
Inadequate working capital
Producers undervalue external expertise
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Diagram 2: Inadequate Business Management Skills
INADEQUATEMANAGEMENT
SKILLS
Managers lackknowledge of
human resourcemanagement
Managers have littleformal training
Managers lackexperience
Lack of serviceproviders/ appropriateservices
Insufficient number of providers
Poor quality of services on offer Producers don’t knowwhich services are available
Limited/ No exposure outsideVietnam
Lack trainingTraining/ consulting is theoretical & often inappropriate
Re: payment/ incentivesRe: labor conditions
Re: worker’s training needs
Re: workers’ careerdevelopment
Historically unavailable
Few appropriate training services available
Lack capital
Undervalue training
Historical lack of demandfor services
Limited access to information & media
Managers are hired dueto connections rather than skills
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Diagram 3: Difficulty Establishing Links with Buyers
Difficulty establishing
links with buyers
Producers aretechnologically
backwards
Producers have difficultygoing abroad to meet buyers
Producers lack informationabout markets
Buyers are capturedby SOEs
Producers lack basicmarketing skills
Re: who their customers are
Re: how to price goods
Re: internationalquality standards
Re: which products will sell
Re: promoting themselves
Re: communicating with clients
Re: developing products
Re: pricingstrategy
Re: distributinggoods
Re: How to find customersLack cash to go abroad
Dependent onagents, so do not know final buyers
Passport/ visa issues
Lack awareness of existingexport promo. programs
Associations mainly for SOEs
Trade directoriesmainly for SOEs
Mainly SOEs who’re chosen for trade fairs
Embassies abroad recommend SOEs
No association to facilitate meetingswith buyers
Lack capitalto upgrade
SOEs are bettercapitalised
Not manybuyers/ buyingagents come to Vietnam
Lack information about Vietnam
Lack exposureto modern technologies
Lack experience in dealing with foreign buyers
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Diagram 4: Low Productivity of Labor Force
LOWPRODUCTIVITY
LEVELS OF LABORFORCE
Poor workingconditions
Workers lackknowledge of basic
skills
Supervisors lackHRM skills
Poor physicalenvironment
Low pay/incentives
Re: garment construction techniques
Re: parameters of quality
Re: machinery use
Re: sewing techniques
Equipment is outdated and/or mismatched
Re: pattern cutting,lay-making & spreading
Long workinghours
DETAILS TO BE FILLED IN FROM MISS LAN’S REPORT
Factory lacks capital to replace/ upgrade it
Management & workerslack knowledge of new technologies
Factory doesn’t want to invest in training
Fear that workerswill leave
Lack capital
Lack of appropriate services
Do not understand its value
Poor productionorganisation
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Diagram 5: Quality Problems
QUALITYPROBLEMS
Workers lackskills
Poorequipment
Supervisors lack skills
Poor communicationbetween buyers/
sellersIneffective QC systems
Poorly cutpatterns
Goods lose quality atFinishing/ packing/storage/ shipping
Re: inspection techniques
Outdated
Not maintained
Badly set up
Wrong equipment
Don’t mark laymarkers
Poor equipment
Don’t knowre: sizes, gradingetc.
Checkers don’t knowwhat to look for Lack QC personnel &
checking stages
Misrepresentationbetween buyers & producers
Buyers don’t briefproperly
Producers don’tunderstandbuyers’ needs
Goods are poorly packed
Bad storage conditions
Latedelivery
Re: sampling
Re: internationalquality standards
Re: quality management
Re: garment constructiontechniques Re: use of machines
Done by hand
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ANNEX 3: Statistical Overview of the Garment IndustryVietnamese Chamber of Commerce and Industry
Table 1: Number of Garment Production Units in Vietnam
No. Province Total Domestic Economic SectorForeigninvestedsector
Total SOE Coopera-tive
PrivateSole
Proprietor
Mixed Household
Total 78782 78707 90 38 56 191 78332 751 Hanoi 2811 2808 13 20 31 2744 3
2 Ho Chi Minh City 5694 5641 14 5 36 118 5468 53
3 Hai Phong 1938 1938 6 6 2 1924
4 Da Nang 1233 1231 1 2 5 1223 2
5 Ha Giang 250 250 250
6 Cao Bang 287 287 287
7 Lao Cai 224 224 1 223
8 Bac Kan 243 243 243
9 Lang Son 455 455 455
10 Tuyen Quang 465 465 1 464
11 Yen Bai 378 378 378
12 Thai Nguyen 981 981 1 1 979
13 Lai Chau 281 281 281
14 Son La 296 296 296
15 Quang Ninh 1343 1343 1 1 1 1340
16 Hoa Binh 416 416 416
17 Phu Tho 933 933 3 1 1 928
18 Vinh Phuc 804 804 1 803
19 Bac Giang 1344 1344 1 1343
20 Bac Ninh 852 852 3 849
21 Ha Tay 2425 2424 2 3 2419 1
22 Hai Duong 2584 2583 2 1 2580 1
23 Hung Yen 1622 1622 1 1 1620
24 Ha Nam 621 621 5 1 615
25 Thai Binh 3529 3529 5 3 3521
26 Nam Dinh 1944 1944 6 1 1937
27 Ninh Binh 871 871 1 870
28 Thanh Hoa 2869 2869 2 2867
29 Nghe An 2734 2734 1 12 2721
30 Ha Tinh 1325 1324 1 1323 1
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Table 1: Number of Garment Production Units in Vietnam (continued)
No. Province Total Domestic Economic SectorForeigninvestedsector
Total SOE Coopera-tive
PrivateSole
Proprietor
Mixed Household
31 Quang Ninh 1504 1504 1504
32 Quang Tri 1016 1016 1016
33 Thua Thien Hue 1726 1726 2 1 1723
34 Quang Nam 1847 1847 4 1 1842
35 Quang Ngai 2549 2549 1 2548
36 Binh Dinh 2144 2144 1 2 2141
37 Phu Yen 857 857 857
38 Khanh Hoa 1636 1636 1 1 1 1633
39 Ninh Thuan 661 661 661
40 Binh Thuan 993 993 1 992
41 Kon Tum 327 327 327
42 Gia Lai 884 884 884
43 Dak Lak 1555 1555 1555
44 Lam Dong 1564 1563 1 1 1561 1
45 Binh Phuoc 733 733 733
46 Binh Duong 384 379 1 3 375 5
47 Tay Ninh 773 772 1 771 1
48 Dong Nai 1548 1543 3 4 3 1533 5
49 Ba Ria -Vung Tau 724 723 1 722 1
50 Long An 1216 1216 1 2 4 1209
51 Dong Thap 1446 1446 1 1445
52 An Giang 2483 2483 2483
53 Tien Giang 874 874 1 1 1 1 870
54 Ben Tre 759 759 1 1 757
55 Vinh Long 974 974 1 973
56 Can Tho 978 977 1 976 1
57 Kien Giang 2647 2647 1 2646
58 Tra Vinh 684 684 684
59 Soc Trang 692 692 692
60 Bac Lieu 0 0
61 Ca Mau 852 852 852
Source: General Statistical Office, December 1997
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Table 2: Average Employment at Garment Production Units in VietnamUnit: People
No. Province Total Domestic Economic SectorForeigninvestedsector
Total SOE Coopera-tive
Private SoleProprietor
Mixed Household
Total 4 3 942 66 76 232 2 326
1 Hanoi 7 7 980 30 74 2 146
2 Ho Chi Minh City 18 15 2155 105 77 310 3 310
3 Hai Phong 4 4 511 109 54 2
4 Da Nang 4 4 2292 49 114 2 203
5 Ha Giang 1 1 1
6 Cao Bang 1 1 1
7 Lao Cai 2 2 20 2
8 Bac Kan 1 1 1
9 Lang Son 1 1 1
10 Tuyen Quang 1 1 80 1
11 Yen Bai 1 1 1
12 Thai Nguyen 2 2 1013 6 1
13 Lai Chau 1 1 1
14 Son La 1 1 1
15 Quang Ninh 2 2 564 20 14 1
16 Hoa Binh 1 1 1
17 Phu Tho 3 3 399 20 1
18 Vinh Phuc 1 1 180 1
19 Bac Giang 1 1 165 1
20 Bac Ninh 3 3 509 1
21 Ha Tay 2 2 611 60 2 455
22 Hai Duong 2 2 491 130 1 150
23 Hung Yen 3 3 2336 250 1
24 Ha Nam 3 3 204 20 1
25 Thai Binh 2 2 206 150 1
26 Nam Dinh 4 4 816 230 1
27 Ninh Binh 2 2 428 2
28 Thanh Hoa 2 2 415 1
29 Nghe An 1 1 374 12 1
30 Ha Tinh 2 1 175 1 143
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Table 2: Average Employment at Garment Production Units in Vietnam (continued)Unit: People
No. Province Total Domestic Economic SectorForeigninvestedsector
Total SOE Coopera-tive
Private SoleProprietor
Mixed Household
31 Quang Ninh 1 1 1
32 Quang Tri 1 1 1
33 Thua Thien Hue 2 2 365 105 2
34 Quang Nam 2 2 299 24 1
35 Quang Ngai 1 1 184 1
36 Binh Dinh 2 2 430 86 2
37 Phu Yen 1 1 1
38 Khanh Hoa 2 2 598 15 60 2
39 Ninh Thuan 1 1 1
40 Binh Thuan 2 2 727 2
41 Kon Tum 2 2 2
42 Gia Lai 1 1 1
43 Dak Lak 2 2 2
44 Lam Dong 3 2 200 110 2 464
45 Binh Phuoc 1 1 1
46 Binh Duong 16 12 3211 220 2 317
47 Tay Ninh 2 2 220 2 362
48 Dong Nai 8 6 1550 34 102 3 522
49 Ba Ria -Vung Tau 6 5 566 2 643
50 Long An 4 4 1205 110 247 2
51 Dong Thap 3 3 1342 2
52 An Giang 2 2 2
53 Tien Giang 4 4 744 17 325 782 2
54 Ben Tre 3 3 120 525 2
55 Vinh Long 2 2 217 2
56 Can Tho 4 4 1085 2 743
57 Kien Giang 2 2 73 2
58 Tra Vinh 2 2 2
59 Soc Trang 2 2 2
60 Bac Lieu 0
61 Ca Mau 2 2 2
Source: General Statistical Office, December 1997.
127
Table 3: Median Employment At Garment Production Units in VietnamUnit : People
Total Domestic Economic SectorForeigninvestedsector
Total SOE Coopera-tive
PrivateSole
Proprietor
Mixed Household
Total 5 4 450 31 35 110 2 204
Median Employment atgarment production unitswhich has more then 2employees
7 6 637 48 49 183 2 314
Average Employment(Table 2)
4 3 942 66 76 232 2 326
Source: General Statistical Office.
Table 4: Number of Garment Exporters in Vietnam(Number of Garment Production Units-Exporters)
No. Province Total Domestic Economic SectorForeigninvestedsector
Total SOE Cooperative PrivateSole
Proprietor
Mixed Household
Total 268 193 76 12 25 80 0 751 Hanoi 26 23 10 3 10 32 Ho Chi Minh City 131 78 11 2 15 50 533 Hai Phong 8 8 4 3 14 Da Nang 5 3 1 2 25 Ha Giang6 Cao Bang7 Lao Cai8 Bac Kan9 Lang Son10 Tuyen Quang11 Yen Bai12 Thai Nguyen 1 1 113 Lai Chau14 Son La15 Quang Ninh16 Hoa Binh17 Phu Tho 1 1 118 Vinh Phuc19 Bac Giang 1 1 120 Bac Ninh 3 3 321 Ha Tay 4 3 2 1 122 Hai Duong 4 3 2 1 123 Hung Yen 2 2 1 124 Ha Nam 5 5 4 125 Thai Binh 6 6 4 2
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Table 4: Number of Garment Exporters in Vietnam(Number of Garment Production Units-Exporters)
(continued)
No. Province Total Domestic Economic Sector Foreigninvestedsector
Total SOE Cooperative PrivateSole
Proprietor
Mixed Household
26 Nam Dinh 7 7 6 127 Ninh Binh 1 1 128 Thanh Hoa 2 2 229 Nghe An 3 3 1 230 Ha Tinh 2 1 1 131 Quang Ninh 1 1 132 Quang Tri33 Thua Thien Hue 2 2 234 Quang Nam 3 3 335 Quang Ngai 1 1 136 Binh Dinh 2 2 1 137 Phu Yen38 Khanh Hoa 3 3 1 1 139 Ninh Thuan40 Binh Thuan 1 1 141 Kon Tum42 Gia Lai43 Dak Lak44 Lam Dong 3 2 1 1 145 Binh Phuoc46 Binh Duong 9 4 1 3 547 Tay Ninh 2 1 1 148 Dong Nai 13 8 3 3 2 549 Ba Ria -Vung Tau 2 1 1 150 Long An 4 4 1 1 251 Dong Thap 1 1 152 An Giang53 Tien Giang 4 4 1 1 1 154 Ben Tre 1 1 155 Vinh Long 1 1 156 Can Tho 2 1 1 157 Kien Giang 1 1 158 Tra Vinh59 Soc Trang60 Bac Lieu61 Ca Mau
Source: General Statistical Office, December 1997.
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Table 5: Volume and Value of Imported Fabrics and Exported Garments in Vietnam
1992 1993 1994 1995 1996 1997
1 Export Value (Millions of USD) 2,580.70 2,985.20 4,054.30 5,448.90 7,255.90 8,900.00
2 Export value of garments
(Thousands of USD)
201,974 238,847 475,607 765,461 993,173 1,199,664
3 Volume of semi-finished fabrics
imported in Vietnam (Millions of
metres)
28.1 27.5 54.1 71.7 190 394
4 Value of semi-finished fabrics
imported in Vietnam (Millions of
USD)
32.3 32.6 64.2 85.3 226 461.0
Source: General Statistical Office, December 1997.
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Table 6: Garment Export Value by CountryUnit: USD1000
No. Country 1992 1993 1994 1995 1996 1997
Total 201,974 238,847 475,607 765,461 993,173 1,199,664
1 Poland 2,814 4,709 3,316 1,908 3,923 9,917
2 Bulgaria 428 300 552 20 865 178
3 Germany 14,330 21,266 58,777 106,754 117,739 164,585
4 Hungary 2,427 2,527 7,458 6,506 5,366
5 Czechoslovakia 953 2,115 1,457 4,879 14,744 3,901
6 Libya 222 2,516 3,052 422
7 Canada 1,501 1,162 1,151 2,786 8,339 18,215
6 Cuba 66 1,948
9 Dominican Republic 100
10 Panama 9 129 125 457
11 Chile 4 198 47
12 Saudi Arabia 24 76 224 2,734
13 China 14 18 399 81 2,599
14 Hong Kong 28,850 24,068 23,844 23,753 30,180 26,630
15 Indonesia 32 155 112 13
16 Japan 27,180 44,336 127,676 222,353 330,649 325,048
17 Cambodia 310 590
18 Laos 2,074 1,369 3,026 2,223 1,267 3,151
19 Malaysia 5 195 354 6,597 4,242 7,570
20 South Korea 14,958 18,331 24,426 43,076 63,686 75,953
21 Singapore 199 1,919 6,288 5,749 11,661 55,796
22 Taiwan 10,977 24,486 62,792 142,307 178,445 197,596
23 Thailand 521 207 5,562 361 681 2,145
24 New Caledonia 10
25 Austria 625 627 1,052 2,830 2,448 3,670
26 Finland 1 80 877 506 2,272
27 France 2,157 7,245 17,698 32,218 29,575 55,396
28 Iceland 113 7 46
29 Italy 71 1,783 6,490 7,570 7,329 27,139
30 Luxembourg 64 48
31 Holland 1,630 3,261 8,100 18,338 28,613 42,940
32 Norway 694 88 939 422 1,481 5,697
33 Romania 1,004 173 142 28
34 Sweden 596 2,973 921 1,010 1,942 10,746
35 Switzerland 2 128 832 2,050 2,933 33,955
36 England 160 1,526 4,926 8,582 17,324 73
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Table 6: Garment Export Value by Country (continued)Unit: USD1000
No. Country 1992 1993 1994 1995 1996 1997
37 Australia 6 364 1,415 1,211 7,337 16,719
38 Belarus 172 69
39 Russia 57,306 37,147 37,502 23,856 24,974 41,436
40 Ukraine 21 3,520 4,285 1,366 1,484
41 Belgium 122 466 1,947 2,878 18,077
42 Denmark 49 462 1,291 2,614 5,489
43 Monaco 78
44 Spain 41 168 1,421 1,913 4,050 13,470
45 Mongolia 25
46 Kuwait 23 90 13
47 North Korea 79
48 Egypt 25 42
49 USA 11,576 10,181 23,040
50 Venezuela 234 45
51 United Arab Emirates 1,142 623
52 India 50 73
53 Palestine 38
54 New Zealand 40 300 1,390
55 Argentina 441 74
56 Mexico 207 545
57 Portugal 94 35 742
58 Brazil 9 79 896
59 Philippines 235 10 967
60 Algeria 772 2
61 Eastern Europe 3,189
62 Ireland 175
63 EU 62,117
64 Israel 59
65 Jordan 16
66 SNG 3,699
67 Turkey 31
68 Middle East 765
69 Uruguay 41
70 Iran 106
71 Other countries 30,665 34,011 58,215 69,295
Source: General Statistical Office
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Table 7: Percentage of Garment Export Value by Countries – DestinationsNo. Country 1992 1993 1994 1995 1996 1997
Total 100 percent 100 percent 100 percent 100 percent 100 percent 100 percent
1 Poland 1.39 1.97 0.70 0.25 0.39 0.83
2 Bulgaria 0.21 0.13 0.12 0.00 0.09 0.01
3 Germany 7.09 8.90 12.36 13.95 11.85 13.72
4 Hungary 1.20 1.06 1.57 0.85 0.54 0.00
5 Czechoslovakia 0.47 0.89 0.31 0.64 1.48 0.33
6 Libya 0.09 0.53 0.40 0.04 0.00
7 Canada 0.74 0.49 0.24 0.36 0.84 1.52
6 Cuba 0.00 0.03 0.41 0.00 0.00 0.00
9 Dominican Republic 0.00 0.04 0.00 0.00 0.00 0.00
10 Panama 0.00 0.00 0.03 0.02 0.05 0.00
11 Chile 0.00 0.00 0.00 0.03 0.00 0.00
12 Saudi Arabia 0.00 0.01 0.02 0.03 0.28 0.00
13 China 0.00 0.01 0.00 0.05 0.01 0.22
14 Hong Kong 14.28 10.08 5.01 3.10 3.04 2.22
15 Indonesia 0.02 0.06 0.00 0.00 0.01 0.00
16 Japan 13.46 18.56 26.84 29.05 33.29 27.09
17 Cambodia 0.00 0.13 0.00 0.00 0.00 0.05
18 Laos 1.03 0.57 0.64 0.29 0.13 0.26
19 Malaysia 0.00 0.08 0.07 0.86 0.43 0.63
20 South Korea 7.41 7.67 5.14 5.63 6.41 6.33
21 Singapore 0.10 0.80 1.32 0.75 1.17 4.65
22 Taiwan 5.43 10.25 13.20 18.59 17.97 16.47
23 Thailand 0.26 0.09 1.17 0.05 0.07 0.18
24 New Caledonia 0.00 0.00 0.00 0.00 0.00 0.00
25 Austria 0.31 0.26 0.22 0.37 0.25 0.31
26 Finland 0.00 0.00 0.02 0.11 0.05 0.19
27 France 1.07 3.03 3.72 4.21 2.98 4.62
28 Iceland 0.00 0.05 0.00 0.00 0.00 0.00
29 Italy 0.04 0.75 1.36 0.99 0.74 2.26
30 Luxembourg 0.00 0.03 0.00 0.00 0.00 0.00
31 Holland 0.81 1.37 1.70 2.40 2.88 3.58
32 Norway 0.34 0.04 0.20 0.06 0.15 0.47
33 Romania 0.00 0.42 0.04 0.02 0.00 0.00
34 Sweden 0.30 1.24 0.19 0.13 0.20 0.90
35 Switzerland 0.00 0.05 0.17 0.27 0.30 2.83
36 England 0.08 0.64 1.04 1.12 1.74 0.01
133
Table 7: Percentage of Garment Export Value by Countries – Destinations (continued)No. Country 1992 1993 1994 1995 1996 1997
37 Australia 0.00 0.15 0.30 0.16 0.74 1.39
38 Belarus 0.00 0.07 0.00 0.01 0.00 0.00
39 Russian 28.37 15.55 7.89 3.12 2.51 3.45
40 Ukraine 0.00 0.01 0.74 0.56 0.14 0.12
41 Belgium 0.00 0.05 0.10 0.25 0.29 1.51
42 Denmark 0.00 0.02 0.10 0.17 0.26 0.46
43 Monaco 0.00 0.03 0.00 0.00 0.00 0.00
44 Spain 0.02 0.07 0.30 0.25 0.41 1.12
45 Mongolia 0.00 0.00 0.00 0.00 0.00 0.00
46 Kuwait 0.00 0.00 0.00 0.01 0.00 0.00
47 North Korea 0.00 0.00 0.00 0.01 0.00 0.00
48 Egypt 0.00 0.00 0.00 0.00 0.00 0.00
49 USA 0.00 0.00 0.00 1.51 1.03 1.92
50 Venezuela 0.00 0.00 0.00 0.03 0.00 0.00
51 United Arab Emirates 0.00 0.00 0.00 0.15 0.06 0.00
52 India 0.00 0.00 0.00 0.01 0.00 0.01
53 Palestine 0.00 0.00 0.00 0.00 0.00 0.00
54 New Zealand 0.00 0.00 0.00 0.01 0.03 0.12
55 Argentina 0.00 0.00 0.00 0.06 0.01 0.00
56 Mexico 0.00 0.00 0.00 0.03 0.05 0.00
57 Portugal 0.00 0.00 0.00 0.01 0.00 0.06
58 Brazil 0.00 0.00 0.00 0.00 0.01 0.07
59 Philippines 0.00 0.00 0.00 0.03 0.00 0.08
60 Algeria 0.38 0.00 0.00 0.00 0.00 0.00
61 Eastern Europe 0.00 0.00 0.00 0.00 0.32 0.00
62 Ireland 0.00 0.00 0.00 0.00 0.02 0.00
63 EU 0.00 0.00 0.00 0.00 6.25 0.00
64 Israel 0.00 0.00 0.00 0.00 0.01 0.00
65 Jordan 0.00 0.00 0.00 0.00 0.00 0.00
66 Singapore 0.00 0.00 0.00 0.00 0.37 0.00
67 Turkey 0.00 0.00 0.00 0.00 0.00 0.00
68 Middle East 0.00 0.00 0.00 0.00 0.08 0.00
69 Uruguay 0.00 0.00 0.00 0.00 0.00 0.00
70 Iran 0.00 0.00 0.00 0.00 0.00 0.01
71 Other countries 15.18 14.24 12.24 9.05 0.00 0.00
Source: General Statistical Office.
134
Table 8: Export Value of Garment by Type of Production Unit, Vietnam
Unit: USD1000
No. Year TotalDomestic Sector
ForeignInvestedSector
Total SOE Coopera-tive
PrivateSole
Proprietor
Mixed Household
1 1992 201,974 201,974 166,629 5,049 9,089 21,207 0 0
2 1993 238,847 238,847 179,135 7,165 15,525 37,022 0 0
3 1994 475,607 418,534 297,547 10,646 28,536 81,805 0 57,073
4 1995 765,461 616,196 417,942 27,557 38,273 132,424 0 149,265
5 1996 993,173 829,299 584,979 29,795 39,727 174,798 0 163,874
6 1997 1,199,664 1,007,718 698,204 41,988 53,985 213,541 0 191,946
Source: General Statistical Office.
136
Table 9: Export of Garment and Textile Products to EU by Country
1993 1994 1995 1996 1997
Country Value(USD)
percent Value(USD)
percent Value(USD)
percent Value(USD)
percent Value(USD)
percent
Germany 149,363,457 61.73 144,655,530 56.59 160,992,417 49.65 174,943,222 44.10 185,991,058
42.05
France 30,637,650 12.66 29,362,556 11.49 41,553,987 12.82 56,615,278 14.27 64,233,620 14.52
Holland 25,116,317 10.38 27,301,846 10.68 37,121,151 11.45 54,645,671 13.78 55,065,483 12.45
UK 12,052,716 4.98 14,273,268 5.58 20,208,496 6.23 29,280,659 7.38 40,719,231 9.21
Italy 16,549,973 6.84 17,093,491 6.69 20,882,023 6.44 26,080,473 6.57 28,805,069 6.51
Spain 1,767,524 0.73 10,589,182 4.14 14,101,576 4.35 18,052,966 4.55 26,530,305 6.00
Belgium 3,985,549 1.65 9,138,135 3.58 10,537,249 3.25 11,205,053 2.82 11,898,320 2.69
Sweden 0 0.00 0 0.00 7,272,521 2.24 7,999,785 2.02 9,662,851 2.18
Denmark 1,714,476 0.71 2,430,154 0.95 3,676,919 1.13 6,081,692 1.53 7,276,376 1.65
Austria 0 0.00 0 0.00 5,464,133 1.69 6,740,601 1.70 5,393,439 1.22
Finland 0 0.00 0 0.00 1,279,913 0.39 1,950,050 0.49 2,826,351 0.64
Greece 646,165 0.27 460,480 0.18 514,066 0.16 684,238 0.17 1,535,861 0.35
Portugal 0 0.00 128,190 0.05 417,287 0.13 1,603,453 0.40 1,329,637 0.30
Ireland 65,848 0.03 172,975 0.07 202,501 0.06 702,246 0.18 828,394 0.19
Luxembourg 50,400 0.02 0 0.00 0 0.00 112,091 0.03 191,576 0.04
Total 241,950,075 100 255,605,807 100 324,224,239 100 396,697,478 100 442,287,571
100
Source: General Customs Office
137
ANNEX 4: Comparison between FOB and CMT BusinessRoger Fielding, Geoffrey Willis & Associates, UK
Constituent Part/ Task required FOB CMT
Select base fabric & trim Yes No
Design garment Yes No
Sample garments for selection Yes No
Refine design, resample Yes No
Make sample to customers’ requirements No Yes
Develop quality specification Yes No
Receive quality specification No Yes
Quote price and delivery Yes Yes
Agree price, payment method and delivery Yes Yes
Schedule production Yes Yes
Order raw materials Yes No
Progress delivery of raw materials Yes Yes
Receive raw materials Yes Yes
Cut Yes Yes
Sew Yes Yes
Finish Yes Yes
Pack Yes Yes
Warehouse, ship & invoice Yes Yes
138
ANNEX 5:List of Private Sector Garment Companies with More Than 100 Workers *
(main cities and provinces only)
No. English Name Address City/Province Tel. Fax. MainActivities
1 30-4 LEATHER GARMENTMAKING FOR EXPORTJOINT-STOCK COMPANY
Industrial Zone Ward 9, HoVan Hue Str., Phu NhuanDist.
Ho Chi Minh 8443332,8441026,8445853
8442464 Garmentsmaking, andleather items.
2 A Dai garment Co.Ltd 220 Bis Highway 14 Ward17 Tan Binh Dist
Ho Chi Minh 8428624 Gamentmaking
3 An Hiep Chau Co.Ltd 3 Area Str., Phuoc Long BWard, Dist 9
Ho Chi Minh 8962523 8961701 Garmentsmaking
4 An Phu Chau Co., Ltd. Khu Pho 3, Phuoc Long BWard, Thu Duc District
Ho Chi Minh 8962523 8961701 Jackets andother garments
5 AN PHUOC GARMENTEMBROLDERY ANDSHOES CO., LTD
18B Su Van Hanh, Phuong12, Quan 10
Ho Chi Minh 86551888350059
8350058 Jackets, shirts,children'sclothes,brassiere andsport shoes
6 APC CO., LTD Xom Moi Hamlet, PhuocLong Village, Thu Duc Dist.
Ho Chi Minh 8962523 8961701 Jackets andvests
7 Ban Co Garment ExportCooperative
116-118 Ban Co St., 3District
Ho Chi Minh 8392808 Shirts andother clothing
8 Binh Dong Garment Co.Ltd 301bc Binh Dong Station,Ward 14, Dist 8
Ho Chi Minh 8563875 8567487 Garmentsmaking
9 Binh Hoa Garment Co. Ltd 111 Phan Dang Luu Str,Ward 7, Phu Nhuan Dist
Ho Chi Minh 8447678 8445385 Garmentsmaking
10 Binh Minh Industry garmentCo.Ltd
308 Pham Van Hai Ward 5Tan Binh Dist
Ho Chi Minh 8915006 8915007 Clothing items
11 Binh Minh Production andTrade Import Export Co. Ltd
30-6 Str., Quang TrungWard, Thai Binh Town
Thai Binh 831674 834010 Towels,industrialsewing thread
12 Binh Son Garment Co.Ltd 1119 Xo Viet Nghe TinhStr., Binh Thanh Dist
Ho Chi Minh 89927558991386
8991386 Garmentsmaking
13 Cao Minh GarmentEnterprise
146/150 Pasteur, Quan 1 Ho Chi Minh 8234588 8738261 Garmentsmaking
14 Chanh Song LongProcessing And TradingService Co., Ltd.
361/4/4 Nguyen Van LuongSt., 6 District
Ho Chi Minh 8754466 8763855 Indutrialsewing andother tradingactivities
15 Cho Lon Garment Co.Ltd Binh Dang Industrial Zone,Ward 6, Dist 8
Ho Chi Minh 8501020 8503103 Garments &clothing
16 Cuu Long GarmentCompany Ltd.
112B Hong Ha Road,Phuong 2, Quan Tan Binh
Ho Chi Minh 090707329 8-8485483
Jackets, shirts
17 Dai Son Co.Ltd 229 Ton That Thiep Str.,Ward 12, Dist 11
Ho Chi Minh 8583819 Garmentsmaking andother laundryactivities
18 Dai Trien Trading andIndutry garment Co.Ltd
48/3a Xuan Thoi Dong, TanXuan
Ho Chi Minh 8914817 8914125 Garments forexport
* Source: VCCI, MPDF. Details accurate at the time of publishing. MPDF takes no responsibility for inaccurate information.
139
19 DAI VU GARMENT CO.,LTD
877 Nguyen Trai St., Dist. 5. Ho Chi Minh 8550472 8960695 Makinggarments forexport anddomesticmarket
20 De Nhat Industry GarmentCo.Ltd
90/2 Pham Van Chieu Str.,Ward 12 Go Vap Dist
Ho Chi Minh 8950851 Garmentsmaking
21 Dieu Thuong Co.Ltd Long Duc Hamlet, TamPhuoc Village, Long ThanhDist
Dong Nai 511035 511038 Garmentsmaking
22 DONA-BITI'S 1/1 National Road No. 15,Tam Hiep Ward, Bien HoaCity
Dong Nai 813887 813786 Garments &shoes making
23 DONATEX K3 Thong Nhat, Bien HoaCity
Dong Nai 823020 817630 Garmentsmaking
24 Dong Anh Co.Ltd Vinh Thuan Commune,Long Binh ,Dist 9
Ho Chi Minh 960614 960616 Bleachingdying cloth,fibers. Woodprocessing
25 Dong Hoa Garment Co.,Ltd 308/6 Cach Mang ThangTam St., Tan Binh District
Ho Chi Minh 8495710 8442018 Garmentsmaking
26 Duc Duoc Garment Co., Ltd. 390 Hoang Van Thu St.,Ward 4, Tan Binh District
Ho Chi Minh 8442731,8449967
8449967 Making tents
27 Duc Phuc EmbroideryCo.Ltd
17 Cong Hoa Ward 4 TanBinh Dist
Ho Chi Minh 8421558 8110938 Garmentsmaking
28 Giai Nong Garment Co. Ltd 461 Ngo Quyen Str., NguHanh Son
Da Nang 831081 826621 Garmentsmaking
29 Hai Son Garment TradeProduction Co.
390 Hoang Van Thu St.,Ward 4, Tan Binh District
Ho Chi Minh 8424955 8446767 Garmentsmaking
30 Hai Thinh Co. 15 Le Thanh Ton St., 1District
Ho Chi Minh 8220193 8231864 Garmentsmaking
31 Hepro Co. 40A Truong Trinh, Dong Da Ha Noi 8 694788 Jackets andknitted wear.
32 Hien Dat GarmentEmbroidery Co., Ltd.
42/42 Village Road No. 13,Ward 15, Tan Binh District
Ho Chi Minh 8496103,8495975
8495924 Sewingjackets,gymnasticclothes andshirts.
33 Hiep Hung Co., Ltd. Head Office, 44 HangTrong St., Hoan KiemDistrict
Ha Noi 8264941 8285241 Garments andembroidery forexport.
34 Hiep Thanh Export GarmentCo.
311 Bis Ho Van Hue St.,Phu Nhuan District
Ho Chi Minh 8453033 8453033 Garments
35 Hiep Thanh Industrygarment Co.Ltd
182 Duong Ba Trac Str.,Ward 2, Dist 8
Ho Chi Minh 8569372 Garmentsmaking
36 Hieu Uy Garment ExportCo.Ltd
220/5 Slope M, Gia Tan 1Thong Nhat Dist
Dong Nai 867883 867746 Garments,embroidery
37 Ho Guom Garment Co. Ltd. 7B Tuong Mai, Truong Dinh,Hai Ba Trung
Ha Noi 66211116620924
6621 111 Garmentsproduction
38 Hoa Binh Atr and handicraftCo. Ltd
55 Hang Trong Str., HoanKiem Dist
Ha Noi 8259402 8258665 Production ofhandicrafts.Garmentsmaking
39 Hoa Binh Import ExportCo.Ltd
64 Truong Dinh Str., Hai BaTrung Dist
Ha Noi 66209646620769
6621411 Garmentsmaking
40 Hoan Cau Garment Co. Ltd. Truong Tho, Thu Duc Ho Chi Minh 8962010 8962009 Garments
140
41 Hoang Gia EmbroideringGarment Co., Ltd.
144 Tran Phu St., Ward 4, 5District
Ho Chi Minh 8350993 8399522 Producingchildren'sjersey wear;sport wear;jackets;trousers andshirts.
42 HOANG HAI CO., LTD 213/24 Nguyen Thien ThuatSt., Dist.3,
Ho Chi Minh 8358971 Garments &Trading
43 Hoang Mai Co.Ltd 23d Phuc Tan, Hoan KiemDist
Ha Noi 8264940 Garmentsitems
44 Hoang Trang EmbroideryCo.Ltd
89 Nguyen Dinh ChieuWard 4 Phu Nhuan Dist
Ho Chi Minh 8462062 8459237 Garments,embroidery
45 Hong Phuc Textile, GarmentCo.Ltd
64/1 Road 14, Tan Binh Dist Ho Chi Minh 8551953 8551025 Garmentsmaking
46 Hong Quan TextileEnterprise Pte
Km 3, Highway 10, QuangTrung Ward, Thai BinhTown
Thai Binh 831689 831918 Production ofcotton towels,cloth.
47 HONG THAI IMPORTEXPORT GARMENT CO.LTD.
67 Bis Highway 14, Ward20, Tan Binh Dist
Ho Chi Minh 85611588570453
8563985 Garmentsmaking
48 HOP HOA TEXTILECOOPERATIVE
12 Nam Vinh Tra Str., Ky BaWard, Thai Binh Town
Thai Binh 831844 Woolencarpets.
49 Hung Phuc Export ImportGarment Co. Ltd.
64/1 Village Road No. 14,Tan Binh District
Ho Chi Minh 8551953 8551025 Garments
50 Hung Sang Co. Ltd. 155A Lac Long Quan St.,,11 District
Ho Chi Minh 8555975,8558328,8558510
8551700 Makinggarments.Producingfootwear.
51 Huu Nghi 2 Garment andTrading Co.Ltd
80 E Highway 13 Ward 16Tan Binh Dist
Ho Chi Minh 8496033 8496033 Garmentsmaking
52 Huy Hoang Garment AndConstruction Joint-stock Co
128B Phan Dang Luu St.,Phu Nhuan District
Ho Chi Minh 8443503,8442086
8440153 Industrialembroideryand garmentsproduction
53 Khai Hoan garment,Embroidery Co. Ltd
231/9 Le Van Sy, Quan PhuNhuan
Ho Chi Minh 8445710 8111379 Garmentsmaking
54 Khai Vi Textile Co. Ltd F1/37 Hamlet 6 Vinh Loc,Binh Chanh Dist
Ho Chi Minh 8772137 7660317 Textilematerials
55 Kim Loc Garment Co.Ltd Group 2, Hiep Thanh Ward,2 Dist.
Ho Chi Minh 8919067 8919065 Bags,handbags,sewing forexport.
56 Kim Nam Garment Co.Ltd 1A-B Tran Xuan Soan Str.,Nha Be Dist
Ho Chi Minh 8728502 8728502 Garmentsmaking
57 Kim Thanh Textile, GarmentCo.Ltd
44/2 Ba Hom Str., BinhChanh Dist
Ho Chi Minh 8750745 8750336 Garmentsmaking
58 Kinh Do Co.Ltd 6/134 Highway No. 13, HiepBinh Phuoc Ward, Thu DucDist
Ho Chi Minh 7269473 7269472 Garmentsmaking
59 LAN ANH CO., LTD 119 Truong Dinh, Dist. 3 Ho Chi Minh 8203508 8224735 Garments
60 Le Sy Garment Co.Ltd 1111 Huynh Van Chinh Str.,Ward 19 Tan Binh Dist
Ho Chi Minh 8601239 8601239 Garmentsmaking
61 Leather Garment Making forexport Joint stock Co.
Insdustrial Area, Ho VanHue Str., Ward 9, PhuNhuan Dist
Ho Chi Minh 8443332 8442464 Garmentsmaking
141
62 Lien Hiep garment Co.Ltd Hamlet 1 Linh Tay WardLinh t©y Phu Nhuan Dist
Ho Chi Minh 8960316 8967468 Garmentsmaking
63 Lien Phat Plastic andAgricutural Co.Ltd
3a Truong Son, Linh TrungThu Duc Dist
Ho Chi Minh 8966766 8960151 Garmentsmaking
64 LIEN PHUONG GARMENTPTE.
4 Viet Thang Road, LinhTrung Ward, Thu Duc Dist.
Ho Chi Minh 8966507 8963184 Jackets,Jeans,sportwear forexport
65 LIEN THANG GARMENT,EMBROIDERY TRADINGCO., LTD
236/62-62B Thai Phien Str.,Dist. 11
Ho Chi Minh 84.8.563948
84.8.8580976
Garmentsmaking
66 LINH GIANG CO.LTD. Group 4, thi tran Duc Giang,Gia lam Townlet.
Ha Noi 84.4.8272043
84.4.8271956
Production ofjute footwear.Garmentsmaking.
67 Linh Phuong GarmentCo.Ltd
11D Phan Ke Binh Str., DaKao, Dist 1
Ho Chi Minh 8960385 8962127 Garmentsmaking
68 Loi Thanh Textile Co.Ltd huyen Vu Ban Nam Dinh 350-820051
Curtainproduction
69 LONG HAI TRADINGGARMENT CO., LTD
65 Vo Van Tan Str., Ward 6,Dist. 3
Ho Chi Minh 82982438958175
8299404 Producingshirts, pulloverandsportswear
70 Long Phi Garment Co., Ltd 112B Hong Ha Ward 2, TanBinh
Ho Chi Minh 848 5483 Garmentsmaking
71 Mai Son Hai garment Co.Ltd 01 Vo Van Ngan Str., ThuDuc Dist
Ho Chi Minh 8960323 Garmentsmaking
72 Maika Garment EnterprisePte
45b Tan Ky, Tan Quy Str.,Binh Chanh Dist
Ho Chi Minh 8755206 8755205 Garmentsmaking
73 MINH HOANG GARMENTCO., LTD.
21 B Pham Van Chieu, GoVap District
Ho Chi Minh 9965107 8293757 Exportinggarments,knittingclothes,swimmingtrunks,especiallyimitation hair.
74 Minh Phung GarmentProduction, Trade andConstruction Co.Ltd
210 Lac Long Quan Str.,Dist 11
Ho Chi Minh 8650392 8650304 Garmentsmaking.Trading infertilizers,cement, steel
75 Minh Thang Garment forExport Enterprise Pte
117 A Phuong Sai Str.,Phuong Son Ward, NhaTrang City
Khanh Hoa 823422 GarmentsMaking
76 Minh Tri Co. Ltd Mai Linh, Thanh Tri Dist Ha Noi 8622802 Garmentsmaking
77 MONDIAL GARMENTEXPORT IMPORT CO.LTD.
Truong Tho Ward., Thu DucDist.
Ho Chi Minh 8962010 8962009 Garmentsmaking
78 My Anh Garment Co. Ltd. Son Tay Ha Noi 7655 123 Garmentsproduction
79 My Dung garment Co.Ltd Song Than Industrial , DiAn, Thuan An
Binh Duong 852740 852458 Garmentsmaking
80 Nam A Garment Co.Ltd 18 A Hoang Dieu Str., PhuNhuan Dist
Ho Chi Minh 8440368 8458511 Garmentsmaking
81 Nam Phu Garment Co.Ltd 545 Huynh Van Banh Ward14 Phu Nhuan Dist
Ho Chi Minh 8941381 8941381 Garmentsmaking
82 Nam Phuong Co. Ltd 454A Tran Phu, Bao Loc Lam Dong 864136 862639 Wool Knitwear
142
83 Nam Son Co. Ltd. Thon Kim Au, Xa Dac Xa,Gia Lam/ 6 Nguyen Trai
Ha Noi 87657348586 312
8766288 Garmentsmaking
84 NAM THANG TRADINGEMBROLDERY GARMENTCO., LTD
2/58 Lu Gia blok of flats,Ward 15, Dist. 11
Ho Chi Minh 8654358 8654359 Garments,embroideries
85 Nam Thanh Co.Ltd 33 Ton Duc Thang Str.,Dong Da Dist
Ha Noi 8232326 87320080 Wool knitting,garmentsmaking
86 New Asia Co.Ltd 79/9 b Xo Viet Nghe TinhWard 26 Binh Thanh Dist
Ho Chi Minh 8990140 Garmentsmaking
87 Ngoc Anh Producing andTrading Co.Ltd
19/16 Ho Van Hue Ward 9Phu Nhuan Dist
Ho Chi Minh 8454688 8454678 Garmentsmaking
88 Ngoc Phuong Co. Ltd 231 Tran Nguyen Han Str.,Hai Phong City
Hai Phong 856557 856557 Garmentsmaking fordomestic andexport
89 Ngoc Thao Agriculturalproducts processing,Trading and GarmentsCo.Ltd
102 Highway 1, Binh ChanhDist
Ho Chi Minh 8750207 8750079 Trading inFertilizers,sport clothesand othergarments
90 Nguyen Hoang Production,Service and Export Co. Ltd.
Dong Quan Road, Group 1,Area 7, Nghia Do Str.
Ha Noi 8340482 8360523 Garmentsmaking.
91 Nguyen Hong Co. Ltd. K42-43-44-K300 Cong HoaStr., Ward 12, Tan BinhDist.
Ho Chi Minh 8422119 8422155 Producingjackets, shirts,trousers andchildren'sclothes forexport
92 Nguyen Tien GarmentCo.Ltd
195 Hung Vuong, An Lac,Binh Chanh Dist
Ho Chi Minh 8-8762805
Garmentsmaking
93 Nhat Tan Co., Ltd 22 Au Co, Phuong 17, QuanTan Binh
Ho Chi Minh 496 099 428 506 Production ofgarments
94 Pacific Garment Co.Ltd 156/34 Thich Quang DucWard 4 Phu Nhuan Dist
Ho Chi Minh 8443410 Garmentsmaking
95 Phat Hung Company Ltd 517 Hong Bang St, District 5 Ho Chi Minh 8558202 8574972 Garments forexport anddomestic sales
96 Phu Ha Co.Ltd 19 Nguyen Van Thu Str.,Da Kao Dist 1
Ho Chi Minh 82971148295658
8297648 Garmentsmaking
97 PHUC YEN GARMENTCO.LTD.
434 Pham Van Hai St., TanBinh Dist.
Ho Chi Minh 8441726 8446361 Garmentsmaking
98 Phung Hoang Garmentmaking Co.Ltd
422 Ho Van Hue Str., PhuNhuan Dist
Ho Chi Minh 8449161 8449160 Garmentsmaking
99 Producing, Processing forExport Co.Ltd
Group 7 Lang Ha Str., DongDa Dist
Ha Noi 7760316 7760316 Garmentsmaking
100 QUANG MINH GARMENTIMPORT-EXPORT CO LTD
215-217 Nguyen Van LuongSt, Dist 6.
Ho Chi Minh 8751491 8751491 Making andimport-exportof garments :jackets,trousers.
101 Quoc Binh Enterprise Pte Thien Chi Str., Vinh BinhTownlet, Go Cong Tay Dist.
Tien Giang 838438 838438 Garmentsmaking
102 QUOC TUANEMBROIDERINGGARMENT UNIT.
553/73A Nguyen Kiem Str.,9Ward ,Phu Nhuan Dist.
Ho Chi Minh 8455010, 8440418 Garmentsmaking.
143
103 Quyet Thang ConstructionCo.
304 Quang Trung Str., Ward11 Dist 7
Ho Chi Minh 8944546 8940339 Textiles, dying
104 RTV Garment Factory Duc Giang, Gia Lam Ha Noi 8272220 8272220105 SA KY MAY ENTERPRISE
PTE79 Le Minh Xuan St., Ward8, Tan Binh Dist.
Ho Chi Minh 86532438643799
8653243 Producingjackets; skingclothes; shirts,trousers andgarmentsproducts.
106 SAI GON EXPORT -IMPORT GARMENT CO.,LTD
553/71 Nguyen Kiem Str.,Ward 9, Phu Nhuan Dist
Ho Chi Minh 84527058441911
8441911 GarmentsProduction
107 Sai Gon Fashion Co.Ltd 44/7 Thuan Quang, TanThoi Nhat Ward, Dist 12
Ho Chi Minh 8910137 8910948 Production offootwear,Garments
108 SAO MAI JOINT-STOCKCOMPANY.
A44 Highway 30, My TraHamlet, Cao Lanh Town/HCMC
Dong Thap 851452 851423 Garmentsmaking.
109 Son Chinh Co.Ltd Dong Tri, Xa Tu Hiep,huyen Thanh Tri
Ha Noi 8615636;8615799
8615636 Garmentsmaking
110 Son Kim Co.Ltd 34 Bui Thi Xuan Ho Chi Minh 83300818394270
8399087 Garments, civilconstruction
111 Song Be Garment ExportsCo.Ltd
30-4 Road, Thu Dau MotTown
Binh Duong 828013 822794 Garmentsmaking
112 Tai Vinh Garment Co.Ltd 7B Quang Trung Str., GoVap Dist
Ho Chi Minh 8959300 8943712 Garmentsmaking.Production ofkid’s bags,bags for export
113 TAN CHAU EXPORTGARMENT CO., LTD.
65/5 Thuan Kieu Hamlet,Tan Thoi Nhat Commune,12 Dist.
Ho Chi Minh 89106608916130
8910661 Producing andtradinggarments.
114 TAN MINH CO., LTD 38ABC Dong Ho Str., Ward8, Tan Binh Dist.
Ho Chi Minh 8640434 8640434 Producing andtradinggarments.
115 Tan Phu Cuong IndustryCo.Ltd
59-60 Truong Cong DinhWard 13 Tan Binh Dist
Ho Chi Minh 8496120 8496116 Garmentsmaking
116 TAN QUY GARMENTPRIVATE EMTERPRISE
459/8 Lo I Str., Hamlet 1,Tan Quy Dong village, NhaBe Dist.
Ho Chi Minh 8728203 8728203 Producinggarments.
117 Tan Tien Co., Ltd 797 CMT8, Dist 10 Ho Chi Minh 8645281 Knitwear118 TAN TIEN GARMENT
COMPANY90/21 Huong lo 14. P 20.Tan Binh Dist
Ho Chi Minh 87521228582195
8582197 Producingclothes
119 TAN TIEN IMPORT-EPORTGARMENT, EMBROIDERYJOINT-STOCK CO.
118/8B Thong Nhat St.,Ward 11, Go Vap Dist.
Ho Chi Minh 8942534894131389588898941302
8940382 Sewing andembroidery
120 TAY DO GARMENT CO.,LTD
1A Ly Thuong Kiet Str.,Ward 7, Tan Binh Dist
Ho Chi Minh 8658992 8658992 Producingchildren'sclothes
121 Thach Kim Co.Ltd 8B Ha Trung Str., Dong DaDist
Ha Noi 8516494 Garments
122 Thai Binh Duong GarmentCo.Ltd
166/34 Thich Quang DucStr., Phu Nhuan Dist
Ho Chi Minh 8442544 8442544 Garmentsmaking
123 THAI TUAN PRODUCING &TRADING CO., LTD
1/148 Huong Lo 40, CaySop Hamlet, Dong HungThuan Village, Hoc MonDist.,
Ho Chi Minh 8912521 8911437 Textile, fabricproduction
144
124 Thang Long A Co.Ltd 704 Phan Van Tri Str.,Ward 17 Dist 7
Ho Chi Minh 8950760 Garmentsmaking
125 Thang Long Garment Co.Ltd 47/13 Highway 14 Ward 20Tan Binh Dist
Ho Chi Minh 8565538 8561204 Garmentsmaking
126 Thang Long Garment-Textile Company Ltd.
10 Road, Phu Khanh Ward Thai Binh 831725 837239 Garmentsmaking
127 Thang Long Textile-DyingCompany Ltd
To 16, Phuong Bo Xuyen,Thi Xa Thai Binh
Thai Binh 839227 Towels makingfor export
128 Thanh Binh Company Ltd. Ap Tan Binh, Xa Loc An,Long Thanh
Dong Nai 844785 Jackets,garmentsitems and fishhooks
129 Thanh Cong GarmentMaking for export EnterprisePte
to16 Nguyen Duc Canh ThaiBinh Town
Thai Binh 833612 838999 Garmentsmaking
130 Thanh Lam garment Co.Ltd 101 Nam Ky Khoi NghiaStr., Dist 1
Ho Chi Minh 8256241 8398161 Garmentsmaking
131 Thanh Tam Garment Co.Ltd 36/9A Quang trung Str., GoVap Dist
Ho Chi Minh 8945791 8945791 Garmentsmaking
132 The Hoa Garment Co.Ltd 71 A D2 Van Thanh Ward25 Binh Thanh Dist
Ho Chi Minh Garments andwool dyeing
133 THIEN AN CO., LTD 299/22 Ly Thuong Kiet Str.,Dist 11
Ho Chi Minh Production ofshirts,trousers, bedsheets,blankets,pillows forchildren
134 Thien Dinh Garment Co.Ltd 368/1 Kha Van Can, LinhChieu Phu Nhuan Dist
Ho Chi Minh 8961632 8-8961632
Garmentsmaking
135 Thien Phu Garment Co.Ltd 1 Hamlet., Way 15 TanThach Tay Village , Cu ChiDist
Ho Chi Minh Garmentsmaking
136 Thuan An Garment Co.Ltd ap Hoa Lan- Thuan Giao-Thuan An Dist
Binh Duong 829822 Handbagproduction
137 TIEN BO INDUSTRIALCOOPERATIVE
44 Le Ngoc Han Str., Hai BaTrung Dist. (179 KhamThien, Dong Da dist.)
Ha Noi 82629068519731
9781211 Garmentsmaking.
138 Tien Long Garment Co.Ltd 55 Tran Nhat Duat Str., TanDinh, Dist 1
Ho Chi Minh 8440398 8438550 Garments forexports
139 Tien Tien Garment Co.Ltd Phong Thuan A SubHamlet, Tan My ChanhHamlet, My Tho City
Tien Giang 874712 877962 Garmentsmaking
140 Tran Thanh Cong Textile,Embroidery, GarmentEnterprise Pte
185 Nguyen Oanh Str., GoVap Dist
Ho Chi Minh 8940184 8941270 Garmentsmaking
141 TRIEU CANH GARMENTCO., LTD.
213/58B Hoa Binh St., TanBinh Dist.
Ho Chi Minh 8653297, 8653297 Producingworking gloves
142 Trung Viet Co.Ltd 308 Hung Vuong Str., VinhTrung Ward, Da Nang City
Da Nang 822311846405
826084 Garments,Sportswear,Embroidery
143 Truong Duong Garment Co. 28 Kim Bien Ward 13, Dist5
Ho Chi Minh 8550792 8552146 Garmentsmaking
144 Truong Thanh Co.Ltd Lau 3,Cho Lon, Quy Nhon Binh Dinh 826633 826633 Garmentsmaking
145 Truong Xuan Co.Ltd Km 2 Dien Bien Str., NamDinh City
Nam Dinh 848241 848731 Garmentsmaking
145
146 Tuan Nha Garment Co.Ltd 142/1a An Lac., Binh ChanhDist
Ho Chi Minh 8754640 8760867 Garmentsmaking
147 Tuong Hung GarmentCo.Ltd
Highway 16, Hiep Thanh,Dist 12
Ho Chi Minh 8911025 8911090 Garmentsmaking
148 Tuong Phat Dye Textile Co.,Ltd.
101/133 Bis Pham Dinh Ho,Ward 6, Dist 6
Ho Chi Minh 855 1537 8583355 Dyed fabricsknittings
149 Tuong Vinh Industrygarment and Trading Co.Ltd
246 Nguyen Hong DaoWard 13 Tan Binh Dist
Ho Chi Minh 8428679 8427902 Garmentsmaking
150 Van Phuc WeavingCombination
Van Phuc hamlet, Ha Dongtown
Ha Tay 824663 Production ofsilk, woolencarpets
151 Van Thang Co.Ltd 2623 Pham The Hien Str.,Ward 7, Dist 8
Ho Chi Minh 8500970 8500972 Garmentsmaking
152 VIET CANG SAFETYMANUFACTURE CO., LTD
A13/29 Ten Lua St., BinhChanh Dist.
Ho Chi Minh 8750479 8752920 Textile andgarments.Sewing laborprotectivegloves.
153 Viet Dai Garment Co.Ltd 37/3 Highway 13 Ward 15Tan Binh Dist
Ho Chi Minh 8470324 8470324 Garmentsmaking
154 Viet Ha Garment Co. 232 Phan Van Tri Str.,Ward 10 Dist 7
Ho Chi Minh 8436374 8436374 Garmentsmaking
155 Viet Hong Co. 425b Highway 885 Ward 8Ben Tre Town
Ben Tre 823485 825270 Garmentsmaking
156 Viet Hung Garment Co.Ltd 10/20 Lac Long Quan Str.,Ward, Tan Binh Dist
Ho Chi Minh 8654709 8657009 Garmentsmaking
157 Viet Nam Garment andfootwear Co.Ltd
O house, Hang KhongClub, 2 Ward, Tan BinhDist
Ho Chi Minh 8443618 8445714 Garmentsmaking
158 Viet Pho Dye, woolenCo.Ltd
3 An Duong Vuong Str.,Ward 10, Dist 6
Ho Chi Minh 8750505 8750504 Garmentsmaking,woolen
159 VIET THANG JEANGARMENT WASHINGFACTORY
2/83 Hoa Phu, Hiep Phu,Thu Duc Dist.
Ho Chi Minh 8961424 8960104 Garments &Laundry
160 Viet Trung Co.Ltd 138 Nguyen Thi Minh KhaiStr., Ha Chau
Da Nang 892027 826325 garmentsmaking
161 Viet Uc Enterprise Pte Moi Sub-hamlet, Long Dinhhamlet, Chau Thanh Dist
Tien Giang 834448 Garmentsmaking
162 VIETNAM GARMENT,FOOTWEAR EXPORT PTE.
A-Building, AerialNavigation Club, Tan BinhDist.
Ho Chi Minh 84436188445714
Producingsport suit, overcoat andchildrenclothes.
163 Vinh Loi Garment Co.Ltd 176-182-184 Tran HungDao B Str., Dist 5
Ho Chi Minh 8558934 8551574 Garmentsmaking
164 Vinh Phat Co. Ltd Yen Vien Town, Gia LamDist
Ha Noi 8271484 8273367 Garmentsmaking
165 Vinh Thanh Garment Co.Ltd 99/9 quoc lo 1, Tan ThoiNhat, Dist 12
Ho Chi Minh 8910102 8910105 Garmentsmaking
166 Xuan Mai Silk WeavingWorkshop
Nam Dinh Nam Dinh 846649 849499 Silk shantung(vai dui)
