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THE INSIDER
49
raw materials, which requires special
machines. So, we are looking forward
to supporting the development of this
potential market for Vietnam. Thailand
is a different story and it is difficult to
compare because it is unlike the story
of Vietnam’s textile industry.
The garment accessories industry
in Vietnam’s textile sector is said to be
very weak. It mainly does work with
imported materials. Has Woolmark
planned any investment in this sector?
Woolmark is not involved in the
field of production of garment acces-
sories. Our main areas are still our
raw materials and wool. If we pro-
duce decorative accessories it will be
a Woolmark tie line, but that’s just one
product line only.
Currently, China is the factory of the
world, so what are the competitive
factors of Vietnam’s products? What
are the advantages and disadvantag-
es of products made in Vietnam?
One of the competitive advantages
of Vietnam is cheap labour. The global
economic conditions are tough now
in all sectors, not just manufacturing
woolen garments. So, we are looking
for the market capable of supplying
workers at a lower cost.
When setting up for co-production in
Vietnam, have Woolmark faced any
difficulties in investment policy or
regulatory barriers?
We have been in Vietnam for nearly
six years now on an agency contract.
However, we are planning that in the
next 12 months we will open a formal
office in Vietnam. At this time we are
looking for places around the West Lake
area for the office.
During business cooperation with
Vietnam, we have not encountered
any legal barriers. In contrast, all of
the agencies, industrial enterprises and
government departments that we have
had the opportunity to meet are very
supportive. Furthermore, the Australian
Government very strongly supported
our investment activities in Vietnam. In
the future, we hope to accelerate the
processing of wool in Vietnam and hope
through this new activity to promote
the needs of the market in general and
the development of Vietnam’s textile
and garment industry in particular.
As an expert, what do you think the
Vietnamese government and related
authorities need to do to improve
and develop Vietnam’s textile indus-
tries more effectively?
My recommendation for develop-
ing the textile industry of Vietnam is
that Vietnam should continue to ex-
pand its production to earlier stages,
for example the stage of processing of
raw materials. The production of a gar-
ment from its raw materials comprises
10 stages. In China, they can do all
ten, while Vietnam is only capable of
seven. They need to get the first three
in place.
So, I hope Vietnam’s textile indus-
try can continue to expand its manu-
facturing processes to complete the
entire production chain from raw fib-
ers to finished product. If you do that,
the competitiveness of Vietnam will be
much better, and it can overcome the
Chinese market due to the abundance
of low cost labour.
GROWN IN
AUSTRALIA,
MADE IN
VIETNAM