Mr. Van Hau (3rd from Left) congratulating Mr.Tien Truong
Do Van Hau, General Manager of Vietnam Oil and Gas Group (Petrovietnam) visited the office of the Vietnam Textile and Garment Group (Vinatex) and met Le Tien Truong, who was promoted as Director General of Vinatex earlier this month.
After congratulating Mr. Tien Truong for becoming the new Director General of Vinatex, the Petrovietnam representatives had a meeting with Vinatex officials wherein both sides discussed business situation in the first six months of 2014.
The representatives of two large state-owned corporations also discussed interconnected solutions to promote mass consumption of products, particularly cooperation in the production of fibres, and the supply of polyester fibres to the textile industry in order to reduce dependence on imports.
Vinatex intends to gradually increase localization ratio in its textile exports, i.e. increase the quantity of domestic raw materials in textile end-products meant for exports, as it would bring in more profits and foreign currency for the country.
In recent months, Vinatex has invested in raw material production for its garment sector, in light of the expected trans-pacific partnership (TPP) and other agreements, which follow yarn-forward principle for eligibility of garments to avail duty-free facility.
Vietnam may sign a free trade agreement (FTA) with the European Union this year, which would provide many advantages for Vietnam’s export products, especially textiles. There is also a possibility of Vietnam signing a FTA with the Customs Union of Russia, Belarus and Kazakhstan.
In 2013, Vinatex’s export turnover reached $2.9 billion, and the company is striving to achieve export turnover of $5 billion by 2020.
On the domestic front too, Vinatex has made inroads in the apparel market over the past five years. The domestic revenue of Vinatex Group was 15.74 billion dong in 2010, which increased by 18 percent to 18.518 billion dong in 2011, followed by an increase of 6.4 percent to 19.7 billion dong in 2012, and by 6 percent to 20.8 billion dong in 2013.
From January to June 2014, Vinatex’s inland revenue is estimated at 11.086 billion dong, which is an increase of 10 percent year-on-year.