Vinatex
Encyclopedia
The Vietnam National Textile and Garment Group (Vinatex) (Tập đoàn dệt may Việt Nam) is a large Vietnamese
textile
company, and one of Vietnam's largest companies overall. The company's 'productive sector' consists of over 50 joint stock companies, and 40 joint venture
companies, principally involved in manufacture; other listed company sectors include fashion magazines, fashion design institute
s and textile-industry vocational school
s and universities. Vinatex operates several import-export companies. Company central offices
are located in Ha Noi.
Vinatex produces a wide variety of textiles and garments, with the capacity to produce over 250000000 square feet (23,225,760 m²) of fabric
per year.
In the first half of 2011 Vinatex' exports reached 1.22bn US$, 20% of the country's total textile exports of 6.16bn.
The vast majority of Vietnam's textiles industry is still located in Ho Chi Minh City
, Hanoi
and neighbouring provinces.
Vinatex started supporting subsidiaries to move out of Hanoi
into neighbouring provinces such as Hung Yen
in 2004.
It announced a strategy to move production closer to the home provinces of its workforces in July 2011 to respond to high costs of labour and land in the main industrial centres of Ho Chi Minh City and Hanoi. The following provinces have been mentioned as having large potential for the development of textile manufacturing:
Transport costs are a major challenge in this strategy, since container shipping costs even from a major port such as Da Nang Port are estimated by Vinatext to be twice as high as in Ho Chi Minh City
.
As part of this strategy Vinatex also acquired Dai Cat Tuong
(Đại Cát Tường), a formerly loss-making textile manufacturer in Quang Ngai Province
.
(PetroVietnam-Vinatex Dinh Vu Joint Stock Company (PVTex)) to build Vietnam's first polyester fiber plant. The factory will be located in Haiphong
and use by-products from oil-refining. It will help to reduce the Vinatex' dependence on imported materials by meeting around 40% of the domestic apparel industry's demand for synthetic fiber.
Vietnam
Vietnam – sometimes spelled Viet Nam , officially the Socialist Republic of Vietnam – is the easternmost country on the Indochina Peninsula in Southeast Asia. It is bordered by China to the north, Laos to the northwest, Cambodia to the southwest, and the South China Sea –...
textile
Textile
A textile or cloth is a flexible woven material consisting of a network of natural or artificial fibres often referred to as thread or yarn. Yarn is produced by spinning raw fibres of wool, flax, cotton, or other material to produce long strands...
company, and one of Vietnam's largest companies overall. The company's 'productive sector' consists of over 50 joint stock companies, and 40 joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
companies, principally involved in manufacture; other listed company sectors include fashion magazines, fashion design institute
Fashion design
Fashion design is the art of the application of design and aesthetics or natural beauty to clothing and accessories. Fashion design is influenced by cultural and social latitudes, and has varied over time and place. Fashion designers work in a number of ways in designing clothing and accessories....
s and textile-industry vocational school
Vocational school
A vocational school , providing vocational education, is a school in which students are taught the skills needed to perform a particular job...
s and universities. Vinatex operates several import-export companies. Company central offices
Office
An office is generally a room or other area in which people work, but may also denote a position within an organization with specific duties attached to it ; the latter is in fact an earlier usage, office as place originally referring to the location of one's duty. When used as an adjective, the...
are located in Ha Noi.
Vinatex produces a wide variety of textiles and garments, with the capacity to produce over 250000000 square feet (23,225,760 m²) of fabric
Fabric
A fabric is a textile material, short for "textile fabric".Fabric may also refer to:*Fabric , the spatial and geometric configuration of elements within a rock*Fabric , a nightclub in London, England...
per year.
In the first half of 2011 Vinatex' exports reached 1.22bn US$, 20% of the country's total textile exports of 6.16bn.
Regional Organization of Production
Vinatex is currently in a process of decentralizing its production away from major industrial cities to take advantage of lower wages and cheaper land in the provinces.The vast majority of Vietnam's textiles industry is still located in Ho Chi Minh City
Ho Chi Minh City
Ho Chi Minh City , formerly named Saigon is the largest city in Vietnam...
, Hanoi
Hanoi
Hanoi , is the capital of Vietnam and the country's second largest city. Its population in 2009 was estimated at 2.6 million for urban districts, 6.5 million for the metropolitan jurisdiction. From 1010 until 1802, it was the most important political centre of Vietnam...
and neighbouring provinces.
Vinatex started supporting subsidiaries to move out of Hanoi
Hanoi
Hanoi , is the capital of Vietnam and the country's second largest city. Its population in 2009 was estimated at 2.6 million for urban districts, 6.5 million for the metropolitan jurisdiction. From 1010 until 1802, it was the most important political centre of Vietnam...
into neighbouring provinces such as Hung Yen
Hung Yen Province
Hưng Yên is a province in the Red River Delta of northern Vietnam.-Administrative divisions:The province comprises one city and nine districts:#Ân Thi#Khoái Châu#Kim Động#Mỹ Hào#Phù Cừ#Tiên Lữ#Văn Giang#Văn Lâm#Yên Mỹ...
in 2004.
It announced a strategy to move production closer to the home provinces of its workforces in July 2011 to respond to high costs of labour and land in the main industrial centres of Ho Chi Minh City and Hanoi. The following provinces have been mentioned as having large potential for the development of textile manufacturing:
- NortheastDong BacThe Northeast is the region at the north of the Red River Delta, Vietnam. Northeast called to distinguish them from the Northwest, but it's actually in the north and northeast of Hanoi, wider than Việt Bắc. The northeast is one of three sub-regions of northern Vietnam...
: Phu Tho ProvincePhu Tho ProvincePhú Thọ is a province in northeastern Vietnam. The province's name derives from Sino-Vietnamese and its capital is Viet Tri City, which is away from Hanoi and from the Noi Bai International Airport...
, Tuyen Quang ProvinceTuyên Quang ProvinceTuyên Quang is a province of Vietnam, located in the northeastern part of the country to the northwest of Hanoi, at the centre of Lo River valley, a tributary of the Red River. The delta formation in the province is called the Tonkin Delta. Its capital is Tuyên Quang Township...
, Thai Nguyen ProvinceThai Nguyen ProvinceThái Nguyên is a province in northeastern Vietnam. It is a mountainous, midland province with natural area of 3534.45 square kilometres and a population of 1,149,100 people as of 2008... - North Central CoastBac Trung BoBắc Trung Bộ is one of the regions of Vietnam. It consists of six provinces: Thanh Hóa, Nghệ An, Hà Tĩnh, Quảng Bình, Quảng Trị, Thừa Thiên-Huế...
: Thanh Hoa Province, Nghe An Province, Quang Tri ProvinceQuang Tri ProvinceQuảng Trị is a province on the North Central Coast of Vietnam, north of the former imperial capital of Huế.-Geography:Located in North Central Vietnam, Quang Tri Province is surrounded by Quang Binh Province on the north, Thua Thien-Hue Province on the south, Savannakhet Province of Laos on the...
, Thua Thien-Hue ProvinceThua Thien-Hue ProvinceThừa Thiên-Huế is a province in the North Central Coast of Vietnam, approximately in the center of the country. It borders Quang Tri Provice to the north and Da Nang City to the south, Laos to the west and the South China Sea to the east. The province has 128 km of coastline, 22,000 ha of... - South Central CoastNam Trung BoNam Trung Bộ is one of the regions of Vietnam. It consists of the independent municipality of Đà Nẵng and seven other provinces. The two southern provinces Ninh Thuận and Bình Thuận are sometimes seen as part of the Southeast region.The region has traditionally been one of the main gateways to...
: Quang Nam ProvinceQuang Nam ProvinceQuảng Nam is a province on the South Central Coast of Vietnam. It is bordered by Thua Thien-Huế province to the north, the nation of Laos to the west, Kon Tum Province to the southwest, Quảng Ngãi Province to the southeast, the South China Sea to the east, and the city of Da Nang to the...
, Binh Dinh ProvinceBinh Dinh ProvinceBình Định is a province of Vietnam. It is located in Vietnam's South Central Coast region.-Administration:Binh Dinh is divided into one city and 10 districts:*An Lão*An Nhơn*Hoài Ân*Hoài Nhơn*Phù Cát*Phù Mỹ*Tuy Phước*Tây Sơn*Vân Canh...
, Phu Yen Province - Mekong DeltaMekong DeltaThe Mekong Delta is the region in southwestern Vietnam where the Mekong River approaches and empties into the sea through a network of distributaries. The Mekong delta region encompasses a large portion of southwestern Vietnam of . The size of the area covered by water depends on the season.The...
: Tien Giang Province, Dong Thap Province - SoutheastDong Nam BoĐông Nam Bộ is a region in Vietnam. This region includes one municipality, Ho Chi Minh City; and five provinces: Dong Nai, Binh Duong, Ba Ria-Vung Tau Province, Binh Phuoc and Tay Ninh. This region is the most economically developed region in Vietnam...
: Tay Ninh Province
Transport costs are a major challenge in this strategy, since container shipping costs even from a major port such as Da Nang Port are estimated by Vinatext to be twice as high as in Ho Chi Minh City
Ho Chi Minh City
Ho Chi Minh City , formerly named Saigon is the largest city in Vietnam...
.
As part of this strategy Vinatex also acquired Dai Cat Tuong
Dai Cat Tuong
Dai Cat Tuong is a textile manufacturer in Quang Ngai Province, Vietnam. After several years of making losses, it was acquired by Vinatex as part of the latter's strategy of decentralization of its production for 39.876bn VND....
(Đại Cát Tường), a formerly loss-making textile manufacturer in Quang Ngai Province
Quang Ngai Province
Quảng Ngãi is a province in the South Central Coast region of Vietnam, on the coast of South China Sea. It is located 883 km south of Hanoi and 838 km north of Ho Chi Minh City.-History:...
.
Joint-Ventures
Vinatex set up a joint-venture with PetroVietnamPetrovietnam
PetroVietnam is the trading name of Vietnam Oil and Gas Group . PetroVietnam has developed rapidly since it was established in 1977, and its activities, through its various companies and wholly owned subsidiaries, now cover all the operations from oil and gas exploration and production to...
(PetroVietnam-Vinatex Dinh Vu Joint Stock Company (PVTex)) to build Vietnam's first polyester fiber plant. The factory will be located in Haiphong
Haiphong
, also Haiphong, is the third most populous city in Vietnam. The name means, "coastal defence".-History:Hai Phong was originally founded by Lê Chân, the female general of a Vietnamese revolution against the Chinese led by the Trưng Sisters in the year 43 C.E.The area which is now known as Duong...
and use by-products from oil-refining. It will help to reduce the Vinatex' dependence on imported materials by meeting around 40% of the domestic apparel industry's demand for synthetic fiber.
External links
- (Vietnamese)(English) Vinatex official site
- Vinatex corporate directory
- Vinatex at Alacrastore