THE VALUE CHAIN MANAGEMENT OF

GARMENT COMPANIES IN VIETNAM

HOANG THI BAO THOA
A Thesis Submitted in Partial Fulfillment of the Requirements
For the Degree of Master of Business Administration
Department of International Business
Graduate School
The University of the Thai Chamber of Commerce
2006
ISBN 974-677-575-8

©Copyright by The University of the Thai Chamber of Commerce

THESIS APPROVAL
GRADUATE SCHOOL
Master of Business Administration
Degree
International Business
Major Field
Title VALUE CHAIN MANAGEMENT OF GARMENT COMPANIES IN
VIETNAM

Hoang Thi Bao Thoa 2006

Name Graduation Year
Accepted by Graduate School, the University of the Thai Chamber of Commerce
in Partial Fulfillment of the Requirements for the Master s Degree
........ Acting Dean, Graduate School
(Dr. Akachai Apisakkul)
Thesis Committee
Chairperson
(Dr. Thasana Boonkwan)
... Thesis Advisor
(Dr. Pussadee Polsaram)
Member
(Dr. Piraphong Foosiri)
External Member from the
(Assoc. Prof. Sriaroon Resanond) Commission on Higher Education
Thesis title: The Value Chain Management of Garment Companies in Vietnam.
Name: Hoang Thi Bao Thoa
Degree: Master of Business Administration
Major titile: International Business
Thesis advisor: Dr. Pussadee Polsaram
Graduate year: 2006
ABSTRACT
The objectives of this study are twofold: (1) To explore the value chain
management of garment companies in Vietnam (2) To recommend the policies in both
firm and government level to improve the value chain management of Vietnamese
garment companies. The research model is used for this study is adapted from The
value
chain model of Michel E. Porter (1985) and garment concepts of Gini Stephens Fri
ngs
(2002). The study shows the value chain of garment companies in Vietnam through
management of 9 activities: Inbound logistic, operations, outbound logistics, ma
rketing
and sales, services, technology development, infrastructures, human resource
management and procurements. The research is analysed based on qualified 173
questionnaires that are collected from garment companies in Vietnam by using SPS
S:
percentage, frequency, mean, standard deviation, t-test. Secondary data also be
analysed.
The main finding of this study, regarding to the value chain management of
garment companies in Vietnam, indicates that there are 7 activities that are man
aged
moderately effective in garment companies in Vietnam. They are inbound logistics
,
outbound logistics, services, technology development, human resource management,
infrastructure and procurement. Two activities that are managed not too effectiv
ely are:
marketing and sales. Only one activity is managed effectively is production. The
importance of activities in the value chain were analysed to find the difference
between
the perceptions of respondents from garment companies and experts. The finding o
f this
study leads to recommend Vietnam government should create a level playing field
for
enterprises of different sectors by gradually removing indirect subsidies for st
ate-owned
enterprises, establish concentrated trade centers in potential market, organize
and provide
funding to regular trade fair abroad, and support in human resource training and
legal aid.
The government also should help textile and garment related services, such as in
dustrial
software, equipment and parts supply, technical services, trade promotion, trade
mark
development, franchise, design, training, quality control, management etc. Final
ly, the
government and VINATEX should play as the facilitators for the development of th
e
industry though provision of information, development of physical infrastructure
, and
institutional support. As finding in section 2 of chapter 4 and discussion in se
ction 2 of
chapter 5 the researcher recommends garment companies in Vietnam should consider
e
operation, marketing and sales, HRM and technology development are their key act
ivities
and need to improve these activities to improve the value chain management.
ACKNOWLEDGEMENTS
Throughout the course of research leading to the completion of this thesis, I ha
ve
gratitude to many people, who have provided me with tremendous help and support
in
one way or another, which I think I cannot possibly acknowledge in full measures
.
Fist and foremost, I would like to express my sincere thanks to Dr. Pussadee
Polsaram, my advisor, for her time and valuable advice and kind supervision. Her
experience, insightful guidance, and encouragement provide me necessary ways and
confidence to carry out and complete this study.
I wish to express my special gratitude, deep thanks and appreciation to my thesi
s
committee: Assoc. Prof. Sriaroon Resanond, Dr. Ekachai Apisakkul, Pussadee Polsa
ram,
Dr. Thanawan Boonkwan and Dr. Piraphong Foosiri for their kindly comments and
useful suggestions during the implementation process of this study.
I would like to express my sincere gratitude to the Royal Government of Thailand
for kindly providing master scholarship and the support fee for me to conduct th
is
research.
I would like to express gratitude and special thanks to my University of Technic
al
Education, Excellency Vo Thanh Binh and The Head of Garment and Fashion Design
Department, who appointed me to attend this master scholarship.
I also wish to express my sincere thanks to garment companies, executives and
garment experts in Vietnam, for their generous and valuable support information
to my
research. Likewise, I would like to send my heartfelt thanks to my Thai and fore
ign
friends in University of Thai Chamber of Commerce, as well as in Thailand and Vi
etnam,
who give me not only considerable assistance but also significant support to hel
p me
conduct the study.
Finally, I have indebted to my respected grandma for her immeasurable love and
cares during my life when she is alive. I am profoundly grateful to my parents,
parents in
law, brothers and especially my husband, who have been always with me in every
situation. They have been an inexhaustible source of encouragement and sharing.
Their
tender love and understanding are invaluable.
This research is dedicated to my husband, Do Tien Truong and my little daughter,
Do Hoang Bao Linh, with love.
TABLE OF CONTENTS
Page
Table of contents vi
List of figures xii
List of tables .. xiv
Abbreviations xvi
Chapters
CHAPTER 1: INTRODUCTION
1.1 Statement of problem .. 1
1.2 The objectives of study .. 4
1.3 Research questions ...... 4
1.4 The scope of study .. 4
1.5 Operation definitions ... 5
1.6 Expected benefits of study.. 8
1.7 The conceptual framework 8
1.8 The organization of study 9
6
CHAPTER 2: LITERATURE REVIEW
2.1 The theoretical framework 11
2.1.1 The theoretical model.. ....... 11

2.1.1.1 Primary activities ... 14

2.1.1.2 Support activities. .. 26
2.1.1.3 Margins .. 29
2.1.2 The linkage between activities ...... 29
2.1.3 Value chain methodology .. 31
2.2 Overview of garment industry in Vietnam 34
2.2.1 Introduction ... 34
2.2.2 Current status of garment industry . 37
2.2.3 Characteristics of the industry . .. 42
2.3 Related literature reviews 47
2.3.1 Important concepts and theories used in garment business .. 47
2.3.1.1 Fashion cycle . . 47
2.3.1.2 Brand name .. ... 50
2.3.1.3 Labeling 50
2.3.1.4 Garment production . . . 53
2.3.2 Related researches .. .. 58
CHAPTER 3: METHODOLOGY
3.1 Conceptual framework 64
3.2 Sources of data . ..
3.1.1 Secondary data ...
3.1.2 Primary data ...
3.3 Sampling, design and measures of questionnaire and interview .
3.3.1 Sampling, design and measurement of questionnaire .. ..
3.3.2 Sampling, design and measurement of interview .
3.4 Data collection methods ... .
3.5 Research analysis, statistics and interpretation of questionnaire
CHAPTER 4: RESULTS OF ANALYSIS
4.1 Response rate and demographics of garment companies in Vietnam
4.1.1 Response rate summarization .
4.1.2 Position of respondents and demographics of firms ....................
4.2 Analysis of value chain management of garment companies in Vietnam
4.2.1 The primary activities management ...
4.2.1.1 Inbound logistics ...
4.2.1.2 Operation management ...
4.2.1.3 Outbound logistics ..
4.2.1.4 Marketing and sales .
4.2.1.5 Services management ... ...
65
65
65
666669
70
70
72
72
73
80
81
81
82
83
84
86
8
4.2.2 Support activities management 87
4.2.2.1 Infrastructure .. 87
4.2.2.2 Human Resource Management ..88
4.2.2.3 Technology Development .. 89
4.2.2.4 Procurement .. 90
4.3 Comparison between respondents and experts perceptions on importance of
activities in the value chain of garment companies in Vietnam.91
4.3.1 Primary activities 92
4.3.2 Support activities 99
4.4 Opinions of experts summarization 104
4.4.1 Strengths and weaknesses of garment companies in Vietnam... 104
4.4.2 Policy regime for garment companies in Vietnam ... 106
4.4.3 Opportunities and challenges of garment companies in Vietnam. 108
4.4.4 The policies that Vietnamese government should implement . 109
4.5Second data analysis110
4.5.1 Other classification of Garment companies in Vietnam ...110
4.5.2 Labour status of Vietnam.................................................
...................... 115

4.5.3 Production forecast and the domestic demands . 116

CHAPTER 5: CONCLUSIONS, DISCUSSIONS & RECOMMENDATIONS
5.1 Conclusions
5.2 Discussion
9
5.2.1 Inbound logistics ................

5.2.2 Operation management ...............

120

5.2.3 Outbound logistics ...

123
5.2.4 Marketing and sales .
123
5.2.5 Services management ... ...............
124

5.2.6 Infrastructure ..
125
5.2.7 Human Resource Management ..
126
5.2.8 Technology Development ...
127
5.2.9 Procurement ..
128
5.3 Recommendations
128
5.3.1 Recommendations for the government .
129
5.3.2 Recommendations for the firms ...
130
5.3.3 Limitations of the study ..
131
5.3.4 Suggestions for further studies
133
136
141
BIBIOGRAPHY
142
143
10
APPENDIX
Appendix 1: Letter for interview s appointment 150
Appendix 2: Topics for face to face interviews ...... 151
Appendix 3: Letter for questionnaire survey 153
Appendix 4: Questionnaires 154
Appendix 5: List of garment companies in Vietnam . 163
Appendix 6: Imports of textile and garment of the world 181
Appendix 7: Textile and Garment of Vietnam in the world market 182
Appendix 8: Growth rate of textile and garment industry 1997-2004 . 183
Appendix 9: Growth forecast of Vietnam s textile and garment 2005-2010... 184
Appendix 10: Growth forecast of Vietnam s textile and garment 2006-2015. 184
Appendix 11: Conditions to reach targets of Vietnam s textile and garment. 185
Appendix 12: List of 5 years projects and estimated budgets .. 186
Appendix 13: Vietnam s map . 187
Appendix 14: Country s profile .. 188
LIST OF FIGURES
Page
Figure 2-1: The value chain model .. 13
Figure 2-2 Inbound logistics model . 15
Figure 2-3: Operation management model .. 16
Figure 2-4: Operation management in the Organization Chart 17
Figure 2-5: Supply chain model ... 19
Figure 2-6: The supply chain in textile and clothing sector . 20
Figure 2-7: Marketing mix model 21
Figure 2-8: Decision on price strategy ............. 23
Figure 2-10: Whole value system model . 39
Figure 2-10: A pressing machine in Garment Company No.10, Hanoi 44
Figure 2-11: A inspection team in Nha Be garment Company 46
Figure 2-12: A fashion cycle ... 48
Figure 2-13: Espirit brand name ... 50
Figure 2-14: Diesel s brand label .. . 51
Figure 2-15: An example of care label ...51
Figure 2-16: Apparel production process ...............53
Figure 2-17: Value chain of garment companies in Vietnam .. ...64
Figure 4-1: Position of respondents 73
Figure 4-2: Firm s experience in Vietnam ...... 75
Figure 4-3: Location of garment companies in Vietnam ... . 76
Figure 4-4: Type of respondents garment companies .. ..77
Figure 4-5: Type of orders ...78
Figure 4-6: The major market .79
Figure 4-7: Location of Textile and garment companies in Vietnam 110
Figure 4-8: Initial investment of Textile and Garment companies in Vietnam .111
Figure 4-9: Ownership of Garment companies in Vietnam ...112
Figure 4-10: Products of textile and garment enterprises in Vietnam ..... 113
Figure 4-11: Ability of labor in Vietnamese textile and garment industry 115
Figure 4-12: Output of Vietnam textile and garment industy 116
Figure 4-13: GDP per capita of Vietnam ...117
LIST OF TABLES
Page
Table 2-1: Vietnam Textile and garment export market structure (in 1,000$) ...... .
.34
Table 2-2: Master Development Plan for period 2005-2010 .. ... . 37
Table 2-3 Vietnam Textile and Garment Export Turnover .. .. ... 38
Table 2-4: The cost structure of the clothing industry, selected countries, 2001 38
Table 2-5: Vietnam current textile and garment machinery and equipm .. ...43
Table 2-6: Prices of labels based on Vietnam and Indonesia as per, January 2004 5
2
Table 2-7: The garment s cost sheet .. 54
Table 4-1: Position of respondents ...73
Table 4-2: Firm s experience in Vietnam ... .. 75
Table 4-3: Location of garment companies in Vietnam ....76
Table 4-4: Type of respondents garment companies 77
Table 4-5: Type of orders ..78
Table 4-6: The major market ... ..79
Table 4-7: Width of Class Interval I .80
Table 4-8: Inbound logistics management of garment companies in Vietnam .81
Table 4-9: Operation management of garment companies in Vietnam .82
Table 4-10: Outbound logistics management of garment companies in Vietnam ... .83
Table 4-11: Marketing management of garment companies in Vietnam ... .. 84
Table 4-12: Sales management of garment companies in Vietnam ...85
Table 4-13: Service management of garment companies in Vietnam ... 86
Table 4-14: Infrastructure management of garment companies in Vietnam ... . 87
Table 4-15: Human Resource Management of garment companies in Vietnam ... 88
Table 4-16: Technology development in garment companies in Vietnam ....89
Table 4-17: Procurement management of garment companies in Vietnam ...90
Table 4-18: Width of Class Interval II ......91
Table 4-19: Independent Sample Test of primary activities ... .. 92
Table 4-20: Group Statistics of primary activities .....93
Table 4-21: Inbound logistics ... 94
Table 4-22: Operations ..95
Table 4-23: Outbout logistics .96
Table 4-24: Marketing and sales ... .97
Table 4-25: Services ... ...98
Table 4-26: Independent Sample Test of support activities ..99
Table 4-27: Group Statistics of support activities ..99
Table 4-28: Infrastructure 100
Table 4-29: Human Resource Management ... .101
Table 4-30: Technology development ... ..102
Table 4-31: Procurement ..103
Table 4-32: Support policies of Vietnamese government for T&G industry ..107
Table 4-33: Supply of garment companies in Vietnam .. 113
Table 4-34: Ability of labor in textile and garment industry .. 115
Abbreviations
AFTA: ASEAN Free Trade Agreement
ASEAN: Association of Southeast Asia Nations
CAD: Computer Aided Design
CAM: Computer Aided Manufacturing
CEPT: Common Effective Preferential Tariff
CMT: Cutting, Making and Trimming
EU: European Union
FDI: Foreign Direct Investment
FTA: Free Trade Agreement
GSO: General Statistic Office
HRM: Human Resource Management
MOT: Ministry of Trade
T&G: Textile and Garment
US: United States
VINATEX: Vietnam Textile and Garment Cooperation
VINATAS: Vietnam National Textile and Apparel Association
WTO: World Trade Organization
CHAPTER 1
INTRODUCTION

1.1 Background and statement of problems

In business, companies are paid to take raw inputs, and to add value to them
by turning them into something of worth to other people. This is easy to see in
manufacturing, where the manufacturer adds value by taking a raw material of littl
e
use to the end-user and converting it into something that people are prepared to
pay
money for (Abrue, M de Palva, 1995). In most cases, the more value companies cre
ate,
the more people will be prepared to pay a good price for the product or service,
and the
more they will keep on buying (Michel E. Porter, 1986). And in today s business
climate, every company needs to maximize the value of every process in their bus
iness.
This is where the Value Chain Analysis tool is useful. Value Chain Analysis helps
companies identify the ways in which the companies create value for their custom
ers,
and then helps the companies think through how they can maximize this value (Mic
hel
E. Porter, 1986).
In garment industry, value chain management becomes critical as the needs of
customer change very fast and production of customer value becomes more complex
(Gini Stephens Frings, 2002). Buyer will expect from garment companies: A well
maintained sample room and fabric/accessory library, a constant supply of new fa
brics
and accessories, efficient communication in reasonable English, fast and correct
sampling, efficient order handling, competitive prices and good quality standard
,
punctual and quick deliveries (45 to 60 days), a reliable, partnership-like busi
ness
relationship (Till Freyer, 2003).
Over many last years, the export turnover from garment industry grew rather
fast, especially after the VN-US Bilateral Trade Agreement came into effect. Vie
tnam's
textile and garment industry witnessed strong development; textile and garment
products made in Vietnam have penetrated to the world market, thus contributing
to the
economic development of the country (VINATAS, 2004). It is one of the industries
that
for many consecutive years ranked very high in term of key export products. The
prestige and quality of Vietnamese garment products are recognized in the world
market. In 2004, export earnings from textiles and garments reached USD 4.4 bill
ion,
ranking second after crude oil only (Report on Vietnam, 2005). Compared to the
previous year, exports grew by nearly 20%. However, the development remains chan
cy
and unsustainable. While the results are impressive one cannot escape the fact t
hat the
added values are not high and that the industry has been facing hard situation s
ince
quotas fell for Vietnam's main competitors in this sector. Vietnam handles about
80%
of its garment and jacket exports on CM (cutting/making) or CMT
(cutting/making/trimming) basis thereby mainly providing labor and machinery onl
y
(Arindam Das, 2001). This means that independent design development is largely
missing. Even for FOB exports, the buyer gives the original sample, and the role
of the
designer or the sampling department is limited to producing counter samples with
a few
variations in color, fabric, or size. In addition, most of the personnel in the
design
department do not seem to be aware of international design and fashion trends, a
nd a
large part of the work of a typical design department is technical, such as develo
ping
patterns (Arin Dam Das, 2001). CM and CMT terms so will be no longer
acceptable to buyers who much prefer FOB (full-package) bookings (Till Freyer,
2003). Part of Vietnam s garment industry is at risk of loosing a high percentage
of its
garment business and therefore work places unless export terms are soon changed
to
FOB (Anh Thi, 2001).
All barriers for textile and garment products have been lifted for WTO members
since 1 Jan 2005, causing unlimited supplies of garment and textile products fro
m
developing countries to developed countries. The buyer can source from any count
ry
without quota considerations and the quota holding seller no longer holds the tr
ump
card (Anh Thi, 2001). In the fast, the buyers after give quota only wait and rec
eive
products with specific quantity and quality requirements. In a quota-free enviro
nment
buyers will only walk into factory if outstanding expertise provides an internat
ionally
accepted quality standard, competitive prices, short production lead-times and a
reliable
customer service (Till Freyer, 2003).
The Government of Vietnam has approved the master plan for the development
of the Vietnam s textile and garment industry. This master plan, entitled the speed
-up
development strategy for Vietnam s garment and textile industry up to 2010 for job
promotion and increase of export turnover , has two major policy objectives, (i)
increasing value added of the Vietnam s garment industry, by shifting production
modality from FOB to CMT (ii) increasing domestic contents of garment exports by
actively investing in the cotton, spinning and weaving industries (Ministry of T
rade,
2004). The value chain management so will be very important to the success of ga
rment
companies in Vietnam in the new environment.
1.2 Objectives study
1. To explore the value chain management of garment companies in Vietnam.
2. To recommend the policies in both firm and government level to improve the
value chain management of Vietnamese garment companies.
1.3 Research questions
1. How is the value chain of garment companies in Vietnam managed?
2. What activities should be considered as strategy activities in the value chai
n
of garment companies in Vietnam?
3. How can garment companies in Vietnam improve their value chain?
1.4 The scope of study
The research is targeted to study Vietnam s state owned, non state own and FDI
garment companies in the North, South and Middle part of Vietnam.
1.5 Operational definitions
These are several definitions of international trade, economics, international
business, fashion and garment export related to the study as follow:
Textile and garment Industry: Textile and garment industry is classified as the
industry that consisting of the companies which manufacture fiber, product of sh
uttle
weaving, knitted weaving, clothing product and accessories. In Vietnam, textiles
and
garments are considered as parts of a single industry.
Garment companies: Companies that operate in the clothing sector are
considered as garment companies.
Export garment companies: Export garment companies are defined as garment
companies that appear on the list of Exporter, Export-Import Department, Ministr
y of
Trade at the end of 2001.
Value: Value in organization is defined as any activity that increases the marke
t
form or function of the product or service in garment companies.
The value chain: The value chain categorizes the generic value-adding
activities of garment companies. Activities compose of inbound logistics, operat
ions,
outbound logistics, marketing and sales, services, firm infrastructure, human re
source
management, technology development and procurement.
Value-chain management: The Value chain management is managing
integrated information about product flow from suppliers to end users to reduce
defects
and inventories, speed time to market and improve customer satisfaction.
Inbound Logistics: Inbound logistics includes receiving, storing, inventory
control, transportation scheduling.
Operations: Operations includes machining, packaging, assembly, equipment
maintenance, testing and all other value creating activities that transform the
inputs in
to the final products.
Outbound Logistics: The activities required to get the finished products to
customers: warehousing, order fulfillment, transportation, distribution manageme
nt.
Marketing and sales: The activities associated with getting the buyers to
purchase product including channel selection, advertising, promotion, selling, p
ricing,
retail management, etc,.
Service: The activities that maintain and enhance product s value including
customer support, repair service, installation, training, spare part management,
upgrading, etc,.
Procurement: Procurement of raw materials, servicing, spare parts, building,
machine, etc,.
Technology Development: Technology Development includes technology
development to support the value chain activities such as Research and Developme
nt,
Process automation, design, and redesign.
Human Resource Management (HRM): The activities associated with
recruiting, development (education), retention and compensation of employees and
managers.
Firm Infrastructure: Firm infrastructure includes general management,
planning management, legal, finance, accounting, public affairs, quality managem
ent,
etc,.
Export: The way that garment companies enter a foreign market by sending
products and selling them through international marketing intermediaries or thro
ugh the
company s own department, branch or sale representatives or agents.
CMT (Cutting, Making, Trimming): Oversea customers send fabric,
accessories or sample to manufacturer for cutting, making and trimming.
FOB operation: The manufacturer designs the sample, send it to the customer
to get approval, and then buy fabric and accessories to make the order or the
manufacturer receive the order with the sample from the buyer, buy fabric and
accessories to make the order.
Fashion: Fashion is the style or styles most popular at a given time. The term
implies three components: style, change and acceptance.
Tariff: taxes imposed on imported garments or fabrics. Two major types of
tariff are: specific tariff (an import duty that assigns a fixed monetary tax pe
r physical
unit of the good imported and Ad valorem tariff (levied as a constant percentage
of the
monetary value of one unit of the imported well).
Quota: specifies a certain physical amount of garments will be allowed into a
country during the time period, usually one year. Quota and tariff can be used a
t the
same time and also can create in-quota tariff and out-quota tariff.
1.6 Expected benefits of study
1. Give understanding of the present situation of Vietnam s garment export
industry and its position in the world market.
2. Identify how effectively the value chain of garment companies in Vietnam
is managing.
3. Recommend a new value chain management method that managers of
Vietnamese garment companies can use to improve their companies value chain.
4. Recommend policies to government s policy makers which can be used as
bases to construct support policies to help garment companies in Vietnam to impr
ove
their value chain.
5. Provide information and finding results for researchers for future studies.
1.7 The conceptual framework
The study will base on the Value chain model, which was described and
popularized by Michael Porter in his best-seller: Competitive Advantage: Creatin
g and
Sustaining Superior Performance, 1985, New York, NY The Free Press. Other concep
ts
and fashion marketing theories will also be applied.
1.8 Organization of study
This thesis consist of 5 chapters: Chapter 1 describes the background and
importance of problems, the objectives and scope of the study, research question
s,
operational definitions, expected benefits and conceptual framework. Chapter 2
presents: the theoretical model, overview of garment industry in the world and i
n
Vietnam, the related literature to understand the value chain of garment compani
es in
Vietnam. Chapter 3 presents research methodology with conceptual frame work,
sources of data, sampling, design and measurement of question. Data analysis wil
l be
presented in Chapter 4 with main parts are: response rate, demographic of firms
and
value chain management analysis, experts opinions summary and secondary data
analysis. Chapter 5 covers: conclusions, discussions and recommendations.
CHAPTER 2
LITERATURE REVIEW

The purpose of this chapter is to review theories and conditions of garment

industry in Vietnam. Three following sections will be covered:
Section 1: The theoretical framework
Section 2: Overview of garment industry in Vietnam
Section 3: Related researchs
2.1 The theoretical framework
2.1.1 The Value Chain Model
The term Value Chain was used by Michael E.Porter in his book "Competitive
Advantage: Creating and Sustaining superior Performance" (1985). In his opinion T
he
value chain disaggregates a firm into its strategically relevant activities in o
rder to
understand the behaviour of costs and the existing and potential sources of
differentiation. A firm gains competitive advantage by performing these strategi
cally
important activities more cheaply or better than its competitors . A firm is profi
table if
the value it commands exceeds the costs involved in creating the product. Creati
ng
value for buyers that exceeds the cost of doing so is the goal of any generic st
rategy (E.
Porter, 1985).
According to John Del Vecchio (2004) a value chain is "a string of companies
working together to satisfy market demands." The value chain typically consists
of one
or a few primary value (product or service) suppliers and many other suppliers t
hat add
on to the value that is ultimately presented to the buying public.
Value chain analysis describes the activities within and around an organization,
and relates them to an analysis of the competitive strength of the organization.
Therefore, it evaluates which value each particular activity adds to the organiz
ations
products or services. The ability to perform particular activities and to manage
the
linkages between these activities is a source of competitive advantage (Arthur A
.
Thomson, 1998). Michael Porter proposed the value chain as a tool for identifying
ways to create more customer value . Every firm is a synthesis of activities that
are
performed to design, produce, and market, deliver, and support its product. The
value
chain displays total value, and consists of value activities and margin. Value a
ctivities
are the physically and technologically distinct activities a firm performs. Thes
e are the
building blocks by which a firm creates a product valuable to its buyers. Margin
is the
difference between total value and the collective cost of performing the value a
ctivities.
The value chain identifies nine strategically relevant activities that create va
lue and cost
in a specific business. This nine value creating activities consist of five prim
ary
activities and four support activities (E. Porter, 1985).
The primary activities represent the sequence of bringing materials into the
business (inbound logistics), converting them into final products (operations),
shipping
out final products (outbound logistics), marketing them (marketing and sales) an
d
servicing them (service). The support activities: procurement, technology develo
pment,
human resource management and firm infrastructure are handled in certain special
ized
department but not only there. The firm s infrastructure covers the costs of gener
al
management, planning, finance, accounting, legal and government affairs that are
borne
by all the primary and support activities (E. Porter, 1985). To develop the valu
e chain
of garment companies in Vietnam, fashion and garment concepts of Gini Stephens
Frings (2002) have been used.
The basic model of Porters Value Chain is as follows:

Figure 2-1: The value chain model

Source: Michael E. Porter, 1985
2.1.1.1 Primary activities
There are five generic categories of primary activities involved in competing in
any industry, as show in figure 2-2. Each category is divisible into a number of
distinct
activities that depend on the particular industry and firm strategy.
Inbound Logistics
TNT N.V., the holding company of the two brands TNT and Royal TPG Post, a
global leader in logistics, mail and express defines Inbound logistics is the
management of a complex supply chain from suppliers to manufacturers . Goods are
received from a company's suppliers and then stored until they are needed on the
production/assembly line. Goods are moved around the organization (E. Porter, 19
85,
Alan Rushton, 2000, Lisa Harrington, 1995). Inbound logistics are described as
following figure:
Suppliers Suppliers
Bulk delivery
Raw material inventory
Transfer
Production
Transfer
Work in progress inventory
and assembly
Transfer

Ware housing
Finished goods

Figure 2-2: Inbound logistics model

Source: TNT N.V Cooperation (Year 2004)
Operations
Operation is the manufacturing or assembling of goods (Chase, 1998). Individual
operations could include room service in an hotel, packing of books/videos/games
by an
online retailer, or the final tune for a new car's engine (E. Porter, 1985). Ope
ration
management may be defined as the design, operation, and improvement of the produ
ction
systems that create the firm s primary products or services. The head of operation
management is the management of production systems (Hiilier, F.S and Lieberman,
1990, Kogut, 1994). A production system uses operations resources to transform i
nputs
into some desired output (Daniels, John D and L.H Radebangh, 1998). An input may
be a
raw material, a customer or a finished product from another system. As indicated
in the
figure 2-3 operation resources consist of what we term the five P s of operation
management: people, plants, parts, processes, and planning and control systems (
Richard
B. Chase, 1998).
Operations management
Output
People Plant Parts Process
Planning and control system
Product system
Input
Figure 2-3: Operation management model
Source: Richard B. Chase, Production and Operations management, 1995
The manufacturing company typically groups operations activities to produce its
products in one department (Richard B. Chase, 1998).
Marketing FinancePlant manager
Production
control
Manufacturing Quality
assurance
Engineering
support
Purchasing
Scheduling
Materials
Control
Tooling
Assembly
Fabrication
Figure 2-4: Operation management in the Organization Chart
Source: Richard B. Chase, Production and Operations management, 1995
In this study, operation is one of 5 primary activities and under E. Porter s
concepts it include every value creating activities that transform the inputs in
to the
outputs. And to avoid double analyzed, this activity later on will be analysed a
s
production of a garment.
Outbound Logistics
The goods are now finished, and they need to be sent along the supply chain to
wholesalers, retailers or the final consumer (Chandra, Sameer Kumar, 2000).
Outbound logistic is also considered as physical distribution. Physical
distribution is defined as all activities concerned with the management of the f
low of
finished goods to consumers (Chandra, 1997). Physical distribution has been expa
nded
into broader concept of Supply chain management (SCM). It involves procuring the
right inputs (Raw materials, components, and capital equipment), converting them
effectively into finished products and dispatching them to the final destination
s (Poirier,
C.C, 1998).
Physical distribution starts at the factory. Managers choose a set of warehouses
(stocking points) and transportation carriers that will deliver the goods to fin
al
destinations in the desired time or at the lowest total cost (Arthur St. Onge, 1
997).
Physical distribution also includes transportation, but this time outbound from
the plant
or storage facility to customers (Alan Rushton, 2000). The management of the fin
ished
goods inventory is included here, along with the protective packaging of goods t
o
reduce damage in transit (marketing handles the type of packaging designed to at
tract
purchasers and sell products), and storage and materials handling (Carl M. Guelz
o,
1986). Physical distribution can be seen here in the supply chain model.
Figure 2-5: Supply chain model
Source: instruction.bus.wisc.edu/jmorris/oim578/default_content.htm
In textile and garment sector, the supply chain starts at raw materials to texti
le
plant, apparel plant and then distributed through distribution centers, retail s
tore to
customer (Gini Stephens Frings, Fashion from concepts to consumers, 2002). Chand
ra
and Sameer Kumar (2000) also wrote about the textile supply chain in their journ
al An
application of a system analysis methodology to manage logistics in a textile su
pply
chain . Textile supply chain is described as figure 2-6.
35

Raw
materials
Textile
plant
-spinning
-weaving
-drying
-printing
Accessory
Apparel
plant
Retail
store
Distrib.
centres
Customer
Figure 2-6 The supply chain in textile and clothing sector
Source: Gini Stephens Frings, 2002
Marketing and Sales
In true customer orientated fashion, at this stage the organization prepares the
offering to meet the needs of targeted customers. This area focuses strongly upo
n
marketing communications and the promotions mix.
Marketing is typically seen as the task of creating, promoting, and delivering g
oods and
service to consumers and businesses (Phillip Kotler, 2003). Marketers are skille
d in
stimulating demand for a company s products; they are responsible for demand
management. Marketing managers seek to influence the level, timing and compositi
on
of demand to meet the organization s objectives (Cateora R. Philip, 2002).
Price
Place
Marketing mix
The marketing mix is probably the most famous phrase in marketing. The
elements are the marketing 'tactics'. Also known as the 'four Ps', the marketing
mix
elements are product, price, place and promotion (Phillip Kotler, 2003).
Product Promtion
Marketing mix
Target market
Figure 2-7: Marketing mix model
Source: Kotler Philip, 2003
Product
The product is the heart of the marketing mix. If the product fails to meet the
end-user or the consumer s needs no additional efforts on any of the other ingredi
ents
of marketing mix will improve the product performance in marketplace (Phillip Ko
tler,
2003). It is important that the product is changed as necessary to bring it up t
o date and
prevent it from being overtaken by competitors (Cavusgil, S. Tamer, 1993).
In garment industry, the style of product is very important and it changes very
fast. The product not only is required good quality but also fashionable. In garm
ent
industry one of the most important things is fashion Designer Karl Lagerfeld (199
6)
said What I like about fashion is change. There s nothing safe forever in fashion.
Fashion is a train that waits for nobody. Get on it or it s gone . And it is true th
at if
fashion never changes public would not buy garment so often.
Here are some examples of product decisions to be made: Brand name,
functionality, styling, quality, packaging, repair and support, warranty.
Price
Changing the product to reflect the product's life cycle is only part of the
essence of a well balanced marketing mix, and so price enters the second importa
nt
consideration of the marketing mix. It is very important that the correct price
is charged
for a product. If the price is too high consumers will avoid the product as they
will
believe it to be too expensive yet if the product is priced too low they may bel
ieve that
there is something wrong with the product for it to be so cheap. Also if the com
pany
charges too low a price, it may not cover its costs (Phillip Kotler, 2003). Ther
e are
many different pricing strategies that companies can use to decide on a price fo
r their
product including market and psychological pricing methods (Cateora R. Philip, 2
002).
MARKETING ANALYSIS

Financial objectives Cost analysis

DECISION ON PRICING STRATEGY
Figure 2-8 Decision on price strategy
Source: Kotler Philip, 2003
When setting a price on a range for products, it is needed to ensure that price
can recoup any overheads, compete with rival companies and customers are willing
to
pay. There are many pricing strategies that companies can use: low price, high p
rice,
value price, market-base price or cost-plus profit. In garment business, price n
ormally
base on cost. Costing a garment will be delivered in the related literature.
Place
Place decides where the product is to be sold. There are 3 main distribution
channels to choose from: Traditional (selling the product to wholesalers who wil
l then
sell the product on to retail outlets), Modern (producers selling the product di
rectly to
the retail outlet.), Direct - the producer selling directly to the consumer such
as door to
door sales or over the internet (Phillip Kotler, 2003).
Marketing promotion mix
Once the product has been made and the price set, it is important that potential
customers are told about the product. Promotion can also be used for reassuring
the
consumer that the product is of good quality and persuading them to purchase the
product. Companies must allocate the promotion budget over five promotion tools:
advertising, sales promotion, public relations, sales force and direct marketing
(Phillip
Kotler, 2003). Companies are always searching for ways to gain efficiency by rep
lacing
one promotional tool with others. The substitutability and effectiveness of the
promotional tools depends on consumer values and attitudes (Phillip Kotler, 2003
,
Cavusgil, 1993).
Advertising
Advertising can be used to build up a long term image for a product (Coca-cola
ads) or trigger quick sales. Certain forms of advertising (TV advertising) can r
equire a
large budget, whereas other forms (Web advertising) may not. Just presence of
advertising might have effects on sales: consumers might believe that a heavily
advertised brand must offer good value .
Sales promotion
Companies use sales-promotion tools to draw a stronger and quicker buyer
response. Sales promotion can be used for short run effects such as to dramatize
product offers and boost sagging sales.
Public relations and publicity
The appeal of public relations and publicity is based on three distinctive
qualities: High credibility (News stories and features are more authentic and cr
edible to
readers than ads), ability to catch buyers off guard (public relations can reach
prospects
that prefer to avoid salespeople and advertisements), dramatization (public rela
tions
have the potential for dramatizing a company and a product).
Personal selling
Personal selling is the most effective tool at later stages of buying process,
particularly in building up buyer preference, conviction, and action. Personal s
elling
has three distinctive qualities: personal confrontation (personal selling involv
es an
immediate and interactive relationship between two or more persons), cultivation
(personal selling permits all kinds of relationships to spring up ranging from a
matter of
fast selling relationship to a deep personal friendship), response: personal sel
ling makes
the buyer feel under some obligation for having listened to the sales talk.
Direct marketing
The many forms of direct marketing: direct mail, telemarketing, internet
marketing-share four distinctive characteristics. Direct marketing is: Nonpublic
(the
message is normally addressed to a specific person), customized (the message can
be
prepared to appeal to the addressed individual), up-to-date (a message can be pr
epared
very quickly), interactive (the message can be changed depending on the person s
response) (Phillip Kotler, 2003)
Service
This includes all areas of service such as installation, after-sales service,
complaints handling, training and so on (E. Porter, 1985, Phillip Kotler, 2002).
Each of the categories may be vital to competitive advantage depending on the in
dustry.
In any firm, however, all the categories of primary activities will be present t
o some
degree and play some role in competitive advantage (E. Porter, 1985).
2.1.1.2 Support Activities
Support value activities involved in competing in any industry, can be divided
into four generic categories, also shown in figure 2-2. As with primary activiti
es, each
category of support activities is divisible into a number of distinct value acti
vities that
are specific to a given industry.
Firm Infrastructure
Firm infrastructure consists of a number of activities including general
management, planning, finance, accounting, legal, government affairs and quality
management. Infrastructure, unlike other support activities, usually supports th
e entire
chain and not individual activities. Depending on whether a firm is diversified
or not,
firm infrastructure may be self-contained or divided between a business unit and
the
parent corporation. In diversified firms, infrastructure activities are typicall
y split
between the business unit and corporate levels (e.g., financing is often done at
the
corporate level while quality management is done at the business unit level). Ma
ny
infrastructure activities occur at both the business unit and corporate levels,
however.
Firm infrastructure is sometimes viewed only as overhead but can be a powerful
source of competitive advantage (E. Porter, 1985)
Human Resource Management (HRM)
Employees are an expensive and vital resource (Gomez-Mejia and R. Luis,
1998). An organization would manage recruitment and selection, training and
development, and rewards and remuneration. The mission and objectives of the
organization would be driving force behind the HRM strategy (Harrison, R,. 1993;
Hendry, C. 1998; Leg, R. 1989). Human resource management support both individua
l
primary and support activities (e.g., hiring of engineers) and the entire value
chain (e.g.,
labor negotiations) (E. Porter, 1985). Human resource management activities occu
r in
different parts of a firm, as do other support activities, and the dispersion of
these
activities can lead to inconsistent policies. Moreover, the cumulative costs of
human
resource management are rarely well understood nor are the tradeoffs in differen
t
human resource management costs, such as salary compared to the cost of recruiti
ng
and training due to turnover (H. John Bernardin, 1993). Human resource managemen
t
affects competitive advantage in any firm, through its role in determining the s
kills and
motivation of employees and the cost of hiring and training. In some industry it
holds
the key to competitive advantage (E. Porter, 1985).
Technology Development
Technology is an important source of competitive advantage. Companies need
to innovate to reduce costs and to protect and sustain competitive advantage (E.
Porter,
1985). Technology development consists of a range of activities that can be broa
dly
grouped into efforts to improve the product and the process (Daniels, 1985).
Technology development tends to be associated with the engineering department or
the
development group (Niebel, B.W, 1993). However, it occurs in many parts of a fir
m,
although this is not explicitly recognized. Technology development may support a
ny of
the numerous technologies embodied in value activities. This could include produ
ction
technology, Internet marketing activities, lean manufacturing, Customer Relation
ship
Management (CRM), and many other technological developments (E. Porter, 1985;
Sayer, A. 1986).
Procurement
Procurement refers to the function of purchasing inputs used in the firm s value
chain. Purchased inputs include raw materials, supplies, and other consumable it
ems as
well as assets such as machinery, laboratory equipment, office equipment, and
buildings (E. Porter, 1985). Though purchased inputs are commonly associated wit
h
primary activities, purchased inputs are present in every value activities inclu
ding
support activities. Procurement tends to be spread throughout a firm. Some items
such
as raw materials are purchased by the traditional purchasing department; while o
ther
items are purchased by plant managers (e.g., machines), office manager or salesp
ersons.
E. Porter, 1985). The cost of procurement activities themselves usually represen
ts a
small if not insignificant portion of total costs, but often has large impact on
the firm s
overall cost and differentiation (Levy, 1993). Improved purchasing practices can
strongly affect the cost and quality of purchased inputs, as well as of other ac
tivities
associated with receiving and using the inputs and interacting with suppliers. T
he aim
of procurement is to secure the lowest possible price for purchases of the highe
st
possible quality. They will be responsible for outsourcing (components or operat
ions
that would normally be done in-house are done by other organizations), and e-
Purchasing (using IT and web-based technologies to achieve procurement aims).
2.1.1.3 Margin
The term Margin implies that organizations realize a profit margin that
depends on their ability to manage the linkages between all activities in the va
lue chain.
In other words, the organization is able to deliver a product / service for whic
h the
customer is willing to pay more than the sum of the costs of all activities in t
he value
chain.
2.1.2 The linkages between activities
The linkages are flows of information, goods and services, as well as systems
and processes for adjusting activities. Their importance is best illustrated wit
h some
simple examples: Only if the Marketing & Sales function delivers sales forecasts
for the
next period to all other departments in time and in reliable accuracy, procureme
nt will
be able to order the necessary material for the correct date. And only if procur
ement
does a good job and forwards order information to inbound logistics, only than
operations will be able to schedule production in a way that guarantees the deli
very of
products in a timely and effective manner as pre-determined by marketing. In the
result, the linkages are about seamless cooperation and information flow between
the
value chain activities.
In most industries, it is rather unusual that a single company performs all
activities from product design, production of components, and final assembly to
delivery to the final user by itself. Most often, organizations are elements of
a value
system or supply chain. Hence, value chain analysis should cover the whole value
system in which the organization operates. This study covers the value chain
management of garment companies in Vietnam. So it studies organizations Value ch
ain
in relationship with other value chains as Figure 2-9 following:
Channel Customer
Supplier
Value Chains Value Chains
Value Chains

Organizations
Value chain
Figure 2-9 Value chain system
Source: http://www.themanager.org/models/ValueChain.htm
Within the whole value system, there is only a certain value of profit margin
available. This is the difference of the final price the customer pays and the s
um of all
costs incurred with the production and delivery of the product/service (e.g. raw
material, energy etc.). It depends on the structure of the value system, how thi
s margin
spreads across the suppliers, producers, distributors, customers, and other elem
ents of
the value system. Each member of the system will use its market position and
negotiating power to get a higher proportion of this margin. Nevertheless, membe
rs of a
value system can cooperate to improve their efficiency and to reduce their costs
in
order to achieve a higher total margin to the benefit of all of them (e.g. by re
ducing
stocks in a Just-In-Time system).
2.1.3 Value chain methodology
The methodology for constructing and using a value chain involves four steps:
identify value chain activities, determine which value chain activities are stra
tegic, trace
costs to value chain activities, and use the activity cost information to manage
the
strategic value chain activities. An organization that can do these things bette
r than its
competitors creates a sustainable competitive advantage.
Identify Internal Value Chain Activities
To identify internal value chain activities, the company should first look for d
iscrete
activities that create value in fundamentally different ways. Each of these acti
vities has
distinctively different costs, cost drivers, and assets, involves different pers
onnel, and
creates value in a fundamentally different way. Second, when identifying value c
hain
activities, the company should take a broad view of the organization's activitie
s. To gain
an understanding of this big picture, the company should identify and separate o
ut three
categories of value chain activities: structural, procedural, and operational (P
orter, 1985;
Riley, 1987; Shank & Govindarajan, 1993; Donelan & Kaplan, 1998). Third, the
company should focus on structural and procedural activities.
Determine Which Activities Are Strategic
To determine which of the value chain activities are strategic, the company must
begin by identifying the characteristics of its products that are valued by exis
ting
customers, and the characteristics that the organization can best exploit to cre
ate value
for future customers. These characteristics may include quality, perfect fit to
specific
customers' needs, or customer support.
After identifying the distinctive characteristics of its offerings, the company
should find out which specific activities in the organization are responsible fo
r creating
those characteristics. The identified activities represent the most important va
lue chain
activities, or in other words, the strategic value chain activities that provide
a
competitive advantage.
After identifying strategic value chain activities, the company must identify th
e nonstrategic
activities as well. These remaining value chain activities are important, but
they do not represent the sources of strategic advantage for the organization.
Trace Costs to Activities
Each value activity incurs costs, generates revenues, and ties up assets. After
identifying the value chain and its strategic and non-strategic activities, one
must assign
operating costs, revenues, and assets to individual activities. The accounting s
ystem
should be designed to accomplish this task. One technique developed to aid the p
rocess
of allocating costs to the appropriate value chain activities cost is activity-b
ased costing
(ABC) (see Cooper, 1990a, 1990b, 1997; Cooper & Caplan 1999).
Identifying the value chain activity cost drivers is a way of understanding cost
behavior and identifying strategic and non-strategic activities. However, it is
more
important to think the broader framework of the value chain as a whole. What is
more
useful in a strategic sense is to explain cost position in terms of structural c
hoices,
procedural practices, and operational skills (Shank & Govindarajan, 1993; Donela
n &
Kaplan, 1998). It is important to note that, for strategic analysis, volume is u
sually not
the most useful way to explain cost behavior. Financial and non-financial measur
es and
cost drivers both lagging (those that result from past actions) and leading (tho
se that
inform future performance) are important. The Balanced Scorecard Framework (Kapl
an
& Norton, 1992) provides senior managers with a focus on the organization's visi
on and
strategy, helps them communicate strategy throughout the organization, links str
ategic
objectives to long-term targets, and helps managers create consensus on organiza
tion
competitive advantages.
2.2 Overview of garment industry
2.2.1 Introduction
The establishment of Nam Dinh textile factory in Red River Delta, North of
Vietnam in the late 19th century had been considered as the starting point for t
he
establishment and development of the textile and garment (T&G) industry in Vietn
am.
Till about the late of 1960, most garment products manufactured for the domestic
market and for the army (for the War). At that time, machinery and other support
came
primarily from China. Between 1970s and 1980s exports commenced, to Germany.
Machinery was imported from the Czech Republic, Poland, and Germany. Between
1981 and 1990, Vietnam s export market expanded to Russia, and other European
countries. Gradually, Vietnamese apparel exports have expanded to Germany, Swede
n,
Norway, and Japan, which together account for a majority of its exports, most of
which
is menswear and children wear (Export-Import Department, Ministry of Trade, 2004
).
After the VN-US Bilateral Trade Agreement came into effect, US became very big
export of garment companies in Vietnam. Following table shows Vietnam Textile an
d
garment export market structure, in that US is the main market of Vietnam, follo
w by
EU and Japan (Vietnam Textile and Apparel Association, 2004).
Table 2-1: Vietnam Textile and garment export market structure (in 1,000$)
Year US EU Japan Others
2003 2,000,000 600,000 500,000 500,000
2004 2,000,000 900,000 550,000 600,000
Source: Vietnam Ministry of Trade, 2003
The textile and garment industry is central to Vietnam's transition from a
centrally planned to a market economy, from an economic system built predominant
ly
around state enterprises to one which treats all enterprises equally regardless
of
ownership, and to the success of the Doi Moi process (Export-import Department-
Ministry of Trade, 2004). The industry is also a critical element in the country
's export
drive, and more generally its efforts to integrate itself into the international
economy.
Textiles and garments are invariably one of the major industries in countries' e
arly-
stage manufactured exports. Export success in this industry is usually the forer
unner to
the emergence of a broad-based export-oriented development strategy. Failure to
achieve export success in this industry is invariably symptomatic of deep-seated
domestic obstacles and an inability to build on strong potential comparative adv
antage
(VINATEX, 2004). Thus the industry is important not just as a major source of ex
ports
and employment, but also for what its growth indicates more generally about econ
omic
performance.
Strong and abrupt policy reforms had revived the T&G industry and placed the
industry into a new stage of development in the last decade of the 20th century.
The
average growth rate of T&G industry was high at 10.4% per annum. By the year 200
3,
the garment export accounted for 18.4% of total export value, nearly twice large
r than
10.6% in 1994 (VINATAS, 2004). The state sector, with 187 textile and garment
enterprises, still dominated the textile and garment industry, although its impo
rtance
had relatively reduced in the recently years as the private sector, both domesti
c and
foreign, grew up rapidly. By the end of 2003, the T&G industry created 1,600,000
jobs,
accounting for 25% of total industrial labor force (Bui Quang Tuan 2004). Since
2000
up to now, Vietnam produces more than 400 million garment pieces per year, mostl
y in
the form of Shirts, Jackets, and Trousers. The two biggest garment-producing cen
ters in
Vietnam are the cities of Ho Chi Minh and Hanoi. The industry now generates abou
t
20% of Vietnam's total merchandise exports, second only to oil, and some 41% of
manufactured exports (Import-export Department-Ministry of Trade, 2004).
In recent years, Garment companies invested in new and modern production
lines, with high quality specialized equipment to produce high quality products.
At the
same time, companies also started projects to treat waste water from factories l
ocated in
densely populated areas, developing ISO 14000 programs, applying the SA 8000 soc
ial
standards for exported products, especially to the US market. Progress was also
made in
building trademarks of well-known companies like Garment Co. No. 10, Viet Tien,
Nha
Be, Thanh Cong and Viet Thang (Le Mong Hoang, 2001). More companies realize the
importance of registering copyrights with the competent agencies at home and abr
oad.
Furthermore, besides capital investment, the Government encourages enterprises t
o
invest in the work force and develop their human resources.
The Government Decision 55/TTg-CP on strategies to accelerate the
development of the garment and textile sectors aims to increase the percentage o
f
domestically supplied raw materials to 50% by 2010. Greater investment to increa
se
cloth supply is therefore essential. In 2005, VINATEX (Vietnam National Textile
and
Garment Corporation), the state-owned sector giant, will strengthen the business
restructuring process and management system. Vinatex s members will become limited
liability companies, operating under Business Law.
Table 2-2: Master Development Plan for period 2005-2010
Content Unit Year Growth (%)
2005 2010 2001-2005 2005-2010
Garment Mln pcs 85.0 136.0 10.0 10.0
Source: Vietnam National Textile and Garment cooperation -VINATEX, 2004
2.2.2 Current Status of garment industry
High growth, little added value
The Vietnamese garments and textile industry has continued to make a
substantial contribution to the overall growth of the economy in 2004. However,
the
development remains chancy and unsustainable (Duc Vuong, 2001). Large export
earnings and hundreds of thousands of new jobs have been bought by capitalizing
on
cheap labor and the opening of the US market. In 2004, export earnings from text
iles
and garments reached USD 4.4 billion, ranking second after crude oil only (Impor
texport
Department Ministry of Trade, 2004). Compared to the previous year, exports
grew by nearly 20%. Economic benefits were largely generated by processing impor
ted
materials and accessories as local content account for around only 30% of the ex
ported
garments and textiles. The main weakness of local garment and textile enterprise
s is
that they are mainly just sub-contractors of foreign partners. Garment exporters
usually
rely on foreign suppliers of raw materials and accessories to fill orders for in
ternational
conglomerates (Duc Vuong, 2001).
Table 2-3: Vietnam Textile and Garment Export Revenue
Year 1998 1999 2000 2001 2002 2003 2004 2005* 2010*
$ mln 1.450 1.747 1.892 1.975 2.781 3.686 4.250 5.000 9.000
Source: Vietnam Textile & Apparel Association (VITAS), 2004; * - Estimated figur
es
Table 2-4: The cost structure of the clothing industry, selected countries, 2001

(percent of gross output)

Countries Unskilled Skilled Capital Value added Intermediate Of Which
labor (1) labor (2) (3) (4) input (5) import (6)
Canada 25.9 5.0 10.2 41.2 58.8 19.8
USA 21.0 5.8 5.8 32.6 67.4 13.8
France 21.6 4.7 8.8 35.0 65.0 24.3
Italy 14.3 3.1 16.4 33.8 66.2 13.5
Japan 21.9 4.0 11.2 37.1 62.9 7.8
Hong Kong 22.6 7.9 12.9 43.4 56.6 13.0
Korea 15.0 2.9 4.7 22.6 77.4 15.9
Chinese Taipei 20.8 3.5 6.0 30.3 69.7 10.9
China 18.2 2.5 12.2 32.9 67.1 5.7
India 21.1 2.9 7.8 31.8 68.2 1.8
Vietnam 9.0 1.2 3.8 14.0 86.0 40.4
Source: EU, Report on Vietnam, 2005
Note: (4) = (1)+(2)+(3); (4)+(5) is percent of gross output; (6) comes from (5)

Table 2-5 shows that Vietnam has the lowest value added cost (14% of gross
output). In which, percent of unskilled, skilled labor and capital put in to add
ed value
also very low compared with others. While % import of intermediate input is high
est
(40.4% of intermediate input).
Structure of the industry
So far, the industry is made up of over 1,200 companies, including over 200
state-owned enterprises (20%), over 600 private/joint-stock/limited liability bu
sinesses
(46%) and around 400 foreign-invested enterprises (33%) with a work-force of ove
r 2
million. In 2004, total production capacity reached 150,000 tons of yarn, 518.2
million
meters of fabric, 784 million pieces of clothing and 114.3 million pieces of kni
tted
wear. The non-state sector is playing an increasingly important role, especially
in
garment and knitwear production. This sector now accounts for 35-40% of the coun
try's
total textile production and 70-75% of garment outputs. As for the foreign direc
t
investment (FDI) in the sector, it has grown fast from 100 projects in 2001 with
a
registered capital of USD 460 million to nearly 400 projects in 2003 with nearly
USD 1
billion of registered capital (Import export Department-Ministry of Trade, 2004)
. So far
Taiwan and Republic of Korea are the biggest foreign investors in the sector acc
ounting
for over 60% of total FDI in textile and garment industries. The gap between the
development of textile and garment firms is substantial. Whereas the overall
development of the sector continues to be fast, it shows imbalances in the growt
h of
textiles and garments (VINATAS, 2004).
In recent years, the garment industry has expanded rapidly and attracted plenty
of investment from the private sector while textiles have seen only very slow gr
owth.
This is because investment in textiles requires a huge amount of capital and onl
y
produces returns in the long term. In 2004, garments accounted for 90% of the ex
ports
from the garment and textile industries. The production of textile fabric, parti
cularly the
dyeing and finishing processes, requires large capital investment, high technolo
gy, and
strong technical management. As a result, Vietnamese firms both private and stat
e-
owned -have not performed well in this sector. Each year, Vietnam must import an
average of 700 million meters of cloth, equal to 70% of demand. So far, the dome
stic
textile sector can meet only 30% of the fabric needs of the garment sector. (Eur
opean
Union Economic and commercial counselors, report on Vietnam, 2005)
Trade agreements on garment
In 2004, exports growth was mainly generated on the US market, which has
become the biggest market for Vietnamese goods so far. Trade between the two for
mer
war foes expanded after the Bilateral Trade Agreement went into effect in Decemb
er
2001. Vietnam earned USD 2.5 billion from textile sales to the US in 2004, up fr
om
almost USD 2 billion in 2003 and just USD 50 million in 2001. At the same time,
Vietnam carries on with integrating into the ASEAN Free Trade Agreement (AFTA)
whose Commonly Effective Preferential Tariff (CEPT) it joined on 01 January 1996
with the aim of completing implementation of the accession roadmap within ten ye
ars.
In 2006, by the end of this period, all tariffs on textile and garment products
will be 05%
only (EU, Report on Vietnam, 2005).
After Vietnam and the EU reached an agreement on Vietnam's accession to
WTO on 9 October 2004, the two sides have today concluded an agreement, which wi
ll
lead to the elimination of EU textile and garment quotas for Vietnam in 2005 (In
stitut
Francais de la mode, 2004). On 16 March 2005, the Council of the EU has confirme
d
the Agreement on Market Access between Vietnam and the EU. The signing of the
Agreement took take place in Brussels on March 31st, 2005. Quota-free export of
textile and garment products to the enlarged EU market means that all obstacles
to
Vietnam's textile exports are removed. Vietnam will be able to compete on an equ
al
footing with WTO members, for which textile and garment quotas will be abolished
world-wide on the same date. At the same time, Vietnam's textile and clothing in
dustry
will enjoy conditions to further develop on its path of international integratio
n.
Following the EU case, Canada has decided to remove its quotas for Vietnam's tex
tiles
and garment as from Jan. 1, 2005. The decision was made after Vietnamese Trade
Minister Truong Dinh Tuyen sent letter to Canadian Trade Minister Jim Peterson,
asking for Canada's support for Vietnam's bid to join the World Trade Organizati
on and
for the abolition of textiles and garment quotas for Vietnam. The Canadian Gover
nment
will create favorable conditions for Vietnamese textiles and garment products to
compete on a level playing field with 148 other WTO members (EU, Report on
Vietnam, 2005).
2.2.3 Characteristics of Textile and Garment Industry
Although the growth rate of the industry was high, the asymmetrical growth
within T&G industry was large. Since 2000, the growth rate of garment production
was
21.4% per annum, while that of textile production was mere 6.9% p.a. (EU report
on
Vietnam, 2004). The unbalanced growth of this sector had caused a strong depende
nce
on textile imports for local consumption as well as garment production. The
Government had made considerable efforts to upgrade technology in the textile
industry, but this sector still could not provide textile with quality satisfyin
g the
demand of garment industry (Le Mong Hoang, 2001).
In the meantime, the technology of garment industry has been generally
upgraded, much better than that of textile industry, although the former gets mu
ch
fewer supports from the Government in upgrading the technology. Many garment
enterprises are now capable of making rapid production adjustments in response t
o
product style changes. New technology and IT-enhanced equipment had been install
ed
in several enterprises (Le Mong Hoang, 2001). This had facilitated them to quick
ly
response to changing demand. The textile industry not only suffered from the low
level of production technology but also from lacks of locally-grown/produced raw
materials. Vietnam s textile industry annually has to import 90% of cotton and 100
% of
yarn for domestic production. However, upgrade in technology in the garment indu
stry
seems not be enough to lift the industry into the higher ladder of value chain (E
U,
Report on Vietnam, 2005).
Table 2-5: Vietnam current textile and garment machinery and equipment (unit:
equipment)
No Description Brand/country of origin Quantity
1
2
3
4
5
Spindle
Spinning rotor
Weaving
machine
Knitting
machine
Sewing
machine
China, Japan, Italy
China
Sinkwang, Picanol, Vamatex, Nissan, Rotal,
Kawamoto
German, Italy, France, US, UK, Taiwan, China,
Japan, Korea
Sunstar, Brother, Juki, Singer, Pfaff, Veit,
Pegasus, Gemsy, Golden Wheel
2,000,000
6,520
15,500
1,540
200,000
Source: VINATEX and VINATAS, 2004
Therefore, the industry mostly focuses on production of unsophisticated and
quota-required products such as shirt, jacket, coats, home dressing and the like
, while
either some categories with granted quotas or some markets without quota but hig
h
quality requirements are still neglected. Low level of technology partly explain
ed low
value added of the garment exports. Most of the raw materials (fabrics and trimm
ings)
are imported, mostly from countries such as Indonesia, Malaysia, Japan, UK, Kore
a,
Taiwan, China, and Hong Kong. Only a limited quantity and type (such as polyeste
r) of
fabrics are sourced from within Vietnam (VINATEX&VINATAS, 2004).
The upstream linkage between textile and garment industry was low, leading to
heavy dependence on imported raw inputs for production. Currently, imported inpu
ts
make up to 50% of total inputs for the garment industry. While total export valu
e of the
garment industry in 2003 was USD 3.6 billion, the import value of raw material f
or
T&G industry amounted to more than USD 4 billions (Ministry of Trade, 2004).
Vietnamese enterprises in the garment industry are still struggle to establish a
trade mark (or brand) for themselves, leading to heavy dependence on intermediary
firms located in Hong Kong, Taiwan and Republic of Korea. Currently, 70% of tota
l
export value of the garment industry is via those intermediaries (VINATAS, 2004)
.
This implies that the low value-added due to low level of technology and heavy
dependence on imported inputs war further exacerbated as parts of this value-add
ed has
to transfer to the intermediaries. In addition, the export will much depend on t
he
health of the intermediaries and their market strategies. Not only high level of
dependence on intermediaries, the garment export is currently much concentrated
in
some quota-required markets such as the US (accounting for 54% of total garment
export value), the EU market (16%). Export value to Japan and Taiwan, two non-qu
ota
markets, accounted for only 19% of total garment export value. (EU, Report on
Vietnam, 2005). Although more and more enterprises had shifted a part of their
production chain to serve the local market, which is viewed as large with total
market
value of at around USD 2.8 billion per year, the local demand for high-end produ
cts
were still satisfied by foreign producers.
Equipment in the garment industry is thought to be more modern, and it is in
any case a very labor-intensive activity. Export orientation has conferred signi
ficant
advantages, as garment producers have the foreign currency to purchase better
equipment (Le Mong Hoang, 2001).
Figure 2-10: A pressing machine in Garment Company No.10, Hanoi
Source: htpp://vnexpress.net/Vietnam/Kinhdoanh/2005/10/3B9E35DE
Almost all garment exports occur as international subcontracting arrangements,
where buyers seek out domestic suppliers, and generally provide them with import
ed
fabrics. This is known in the trade as CMT (cut, make and trim). Such an arrange
ment
initially proved to be beneficial to Vietnamese producers, who almost uniformly
lack
international marketing knowledge (Till Freyer, 2003). Exporters are trapped in
very
low value added production. Almost all producers - even the very large ones - la
ck the
experience and resources to embark on energetic marketing programs. Some foreign
and private firms are now beginning to explore new markets. But the huge state-o
wned
conglomerate VINATEX, which accounts for about half of the industry's exports,
appears ill-equipped for this new challenge (Duc Vuong, 2001).
Accurate time series and disaggregated cross sectional wage data are not
available for Vietnam, but it is well known that the country has one of the lowe
st real
wage levels in Asia. Approximate pre-crisis wage data for textiles suggest that
unskilled wage rates in the textile industry are at least 20% below those in suc
h major
low-income exporters as China, India, and Indonesia, and about one-third those o
f
Thailand. Clearly unskilled wage rates are not an obstacle to Vietnam's internat
ional
competitiveness in textiles and garments.
(EU, Report on Vietnam, 2005)

The Vina Control Office, Hanoi, set up in 1957, under the Ministry of Trade, is
the leading inspection organization in Vietnam for checking imports and exports
in
terms of quality, quantity, weight, condition of goods, and checking/ testing is
done in
warehouses, ships, etc. It uses ISO 2859 and MIL STD 105 as standard testing/
checking procedures, unless specifically stipulated by the client. The normal le
vel of
checking is AQL 2; for major defects it is AQL 2.5, and for minor defects it is
AQL
4.0. Vina Control issues the clearance certificate only if the results are withi
n the
specified limits. If necessary, re-inspection is also done (Arin Dam Das, 2001).
Figure 2-11 A quality inspection team in Nha Be garment company
Source: htpp://vnexpress.net/Vietnam/Kinhdoanh (Year 2004)
2.3 Related literatures reviews
To understand more about the value chain in general and value chain in garment
companies, in this part of the research other theories are covered to support fo
r the
theoretical framework.
2.3.1 Important concepts and theories used in garment business.
In the Fashion from concept to consumer book, Gini Stephens Frings tells the
whole story of how the garment business works, in sequential order from concept
to
consumer. Among of them, the following concepts and theories can be used to supp
ort
the value chain methodology of garment companies.
2.3.1.1 Fashion cycle
Charu Chandra wrote in his article Supply chain management (2004): One of
the common problems encountered in managing a supply chain is that of
synchronization of activities throughout the life cycle of its products . With gar
ment
manufacturers fashion cycle is very important factor because it helps manufactur
ers do
the right action, at the right time to meet the demands of customers (Gini Steph
ens
Frings, 2002).
Garment business is different compared with other business. Fashion cycle now
is changing very fast and this trend affect to the delivery lead time. It requir
es a more
effective fashion forecast in garment companies to catch the trend and fulfill t
he needs
of customers so it would affect to the value chain of garment companies.
Fashion cycle is usually depicted as a bell shaped curve encompassing five stage
s.
Introduction
Rise
Peak
Decline
Rejection
Sales
Time Introductory
phase
Acceptance phase Rejection
phase
Introduction
Rise
Peak
Decline
Rejection
Sales
Time Introductory
phase
Acceptance phase Rejection
phase
Figure 2-12: A fashion cycle
Source: Gini Stephens Fring, 2002
Introduction of a style
Most new styles are introduced at a high price level. Designers who are
respected for their talent may be given finance to design with very few limitati
ons on
creativity, quality of raw materials or amount of fine workmanship. They create
new
apparel and accessory styles by changing elements such as line, shape, color, fa
bric,
and details. Production costs are high and only a few people can afford the resu
lting
garments. New styles are shown to retail buyers and the press at collection show
ings
and market weeks. Some wealthy people are able to buy these clothes because they
want to wear them to important events. Some new styles are loaned to movie and T
V
stars to wear so that they will be seen by many people.
Increasing in popularity
When new styles are seen worn by celebrities on television or photographed in
magazines they attract the attention of the general public. Viewers and readers
may
want to buy but perhaps cannot afford them. Popular styles are copied by other
manufacturers to make them available to the general public. They use less expens
ive
fabric and may modify the design to sell the style at lower price.
Peak of popularity
When a fashion is at the height of popularity it may be in such demand that
more manufacturers copy it or produce adaptations of it at many price levels. Vo
lume
production requires mass acceptance.
Decline in popularity
Eventually, so many copies are mass produced that fashion conscious people tire
of the style and begin to look for something new. Consumers still wear garments
in the
style but they are no longer willing to buy them at regular prices.
Rejection of a style
In the last phase of the fashion cycle, some consumers have already turned to
new looks, thus beginning a new cycle. The rejection or discarding of a style ju
st
because it is out of fashion is called consumer obsolescence.
2.3.1.2 Brand names
Brand names have becomes very important in the fashion business. Brand
names identify products made by a particular manufacturer. Brand name must fit t
he
image that the manufacturer wants to project, reflects the style and mood of the
clothes,
and appeal to the intended customer. The ultimate goal of manufacturer is to est
ablish
the identity of a particular brand to such an extent that consumers prefer that
brand over
all others (Gini Stephens, 2002).

Figure 2-13: Esprit brand name

2.3.1.3 Labeling
Labels are the sources of identification for garments. Along the production line
,
various labels must be attached to the garment. These include manufacturer or de
signer
identification, fiber content, care instructions, country of origin and size. Fe
deral law
requires listing fibers in order of percentage used, along with cleaning or wash
ing
instructions (Gini Stephens, 2002).
Label can help establish the company s image. They tell customers the name of
brand or designer. Some people are attracted to a particular label or brand beca
use of its
reputation for quality or fit. The brand label is usually made on satin or twill
ribbon and
sewn inside the center back neck, inside the waistband. It has even become fashi
onable
to put labels on the outside of sportswear garments. Here is an example of Diese
l s
Brand label, which is put inside the center back neck with the size label.

Figure 2-14: Diesel s Brand label

A label showing fiber content, care instructions and country of origin must also
be
included in the garment. This information is usually on a separate small label u
nder the
brand label or on an inside seams (Gini Stephens 2002).

Figure 2-15: An example of care label

There are pages of USA s regulations concerning fiber content and country of
origin labeling. The predominant fiber in the garment is listed first along with
its
content percentage, followed by the other fibers in decreasing order of content.
Care
instructions are recommended and can be very specific. These instructions not on
ly
protect the consumer but also protect the manufacturer against return made by
consumers who do not care for their garments as instructed. A country of origin
label is
required by customs. The label must say Made in (name of country)
Hangtags, printed paper tags may be hung from the garment by plastic staple,
barb or string. Hangtags are designed to draw attention to the garment and are h
ung on
the side of the garment so that the customer can see them easily. They usually s
how the
brand name, perhaps style number, color, size, and other product information (Gi
ni
Stephens, 2002).
Table 2-6: Prices of labels based on Vietnam and Indonesia as per, January 2004
(items chosen at random)
Description Vietnam (US$) Indonesia (US$)
Main label (s.Oliver size)-2 colors 0.010 0.017
Size label 0.004 0.008
Care label 0.005 0.01
Source: Till Freyer, 2004
2.3.1.4 Garment production
Production process is so different between industries. In garment business
production is another of the three integral phases of fashion manufacturing: des
ign,
production and sales. Apparel production process is described in figure 2-16.
Figure 2-16: Apparel production process
Costing
Scheduling
Production pattern
Grading
Maker
Cutting
Assembly
Shipping
Quality control
Source: Gini Stephens Frings, 2002
Costing a garment
The production cost of a garment must be determined to set the wholesale price,
the price that wholesalers or retailers pay for goods that they purchase from
manufacturers (Till Freyer, 2004).
Costing is an exact calculation by the costing or import department, using actua
l
figures for materials and labor. The costing department uses the designer s work s
heet,
a prototype garment, and the production pattern to analyze materials and constru
ction
step by step. Labor cost may be calculated by time studies. In this case, engine
ers time
each operation such as closing a seam. A detailed cost analysis of one garment i
ncludes
expenses for fabric, trims, cutting, labor, overhead, sales commission, and
manufacturer s profit (Gini Stephens, 2002). The final cost is plotted on a cost s
heet in
the following table.
Table 2-7: The garment s cost sheet
Costs Price Units Amount
Direct cost
Fabric
Accessories
Labor
Total direct cost
Indirect cost
Design staff salaries, cost of sample
General administrative overhead
Sale commission
Trade discount
Total indirect cost
Total cost
Mark up
Wholesale price of a garment
Source: Gini Stephens Frings, 2002
Production scheduling
The production manager or merchandiser schedules cutting and garment
assembly in time to meet shipping dates (Arindam Das, 2001). A computer-generate
d
production schedule or issue plan is created to ensure that delivery dates are m
et. The
first date on the schedule usually is a shipping date that will meet the order
requirements. The schedule progresses backward to include completion dates, cutt
ing
dates and fabric delivery dates Production scheduling is very difficult because i
t has
to be organized to take maximum advantage of plant capacity as well as to meet
shipping date. Orders for each style must be complied to determine how many garm
ents
of each size to produce (Gini Stephens Frings, 2002).
Pattern making
Accurate pattern-making is crucial for successful apparel production (Gini
Stephens Frings, Fashion from concepts to consumers, 2002)
In garment companies, to make pattern the production pattern makers do:
draping, drafting or flat-patterning from standardized basic blocks. In producti
on, strict
attention must be paid to company size specifications, which are standardized
measurements for each size. When using fabrics that shrink such as cotton, patte
rns
have to allow for that shrinkage.
At most large manufactures, patterns are made on computer. With computer
aided design (CAD) systems, the pattern maker manipulates small graphic patterns
on
the computer screen with a handheld control device.
Spreading and cutting procedures
Using the markers made from graded patterns, fabrics are cut to prepare for
garment assembly. Conventionally, a spreader machine is guided along a table, la
ying
fabric on the cutting table, the length determined by the marker. The fabric is
cut at the,
the machine returns to the other end, and the next layer is laid face up on top
of the
first, in the same direction. Fabric is spread on the cutting table with one ply
on top of
another so that many layers can be cut at the same time. Then the marker is put
on top
of the layers of the fabric. A cutter follows the pattern outlined on the marker
, using a
straight knife machine with a long and thin blade that vibrates vertically as it
is pushed
through many layers of fabric (Gini Stephens Frings, 2002).
Garment assembly
The next step in production is the actual assembly or sewing of quantities of
garments. No two garment companies use all the same methods, but all follow the
same
basic order. A supervisor analyses a garment s construction to determine the best
and
fastest way to sew the garment. An operation sheet is drawn up, listing all nece
ssary
operations in sequence. Nowadays, most garment company uses Individual Incentive
Systems (piecework) to improve productivity. Sewing machine operators, finishers
and
pressers are paid on a piecework rate. That is they are paid a set amount for ea
ch
operation that they complete, rather than by the hour. Rates vary with the diffi
culty of
the operation. Actually, most companies pay a guaranteed wage (minimum wage), wi
th
piecework acting as incentive for operators to work fasters and therefore earn m
ore. In
USA and EU, most factories have installed automated systems for movement of good
s
and sewing to speed up production and cut lead time. They also use computer
technology in garment assembly with Computer aided manufacturing (CAM):
applications include computerized cutting and programmable sewing machine (Gini
Stephen Frings, 2002).
Finishing
To ensure a perfect color match between garments to be worn together,
manufactures can dye the finished garments, which are in case made with greige (
gray)
fabrics. Washing sometime required by customers.
Pressing
Pressing vastly improves the look of a garment. It can hind a multitude of
imperfections such as puckered seams and collars that do not lie flat. Garments
are
pressed during the course of construction as well as at completion. Steam irons
are used
for areas not easily accessible. Automated pressing is done by computer-controll
ed
pressing equipment (Gini Stephen Frings, 2002).
Quality control
Quality control is the standardization of production sing specifications as
guides. The last garment sewn should be the same as the first garment. To ensure
that
production has been done correctly and to prevent returns, both work in progress
and
finished garments are inspected totally. Quality controllers not only check for
poor
sewing, but also spot check measurements against original specifications. Nothing
to
have beautifully designed garment if it is not produced well Karl Lagerfeld, 1990
s
international trendsetting designer, said. Besides construction mistakes, reason
s for
return include poor fabric, fabric shading and broken needle still remain in the
garment.
2.3.2 Related researches
The Wisconsin Manufacturing Extension Partnership (WMEP), a technical and
business resource created expressly to help small and midsize manufacturers impr
ove
productivity and compete more effectively in the global marketplace has an analy
sis
about The different between supply chain and value chain (2000). On their opinion:
Understanding how the Supply Chain integrates with the Value Chain will add to t
he
company s profitability. The Supply Chain focuses on the activities involved with
acquiring raw materials and sub assemblies, and then getting them through
manufacturing process smoothly and economically. Value Chain Management looks at
every step, from raw materials (including those suppliers suppliers use) to the
customers and the eventual end user, right down to disposing of the packaging. T
he
goal is to deliver maximum value to the end user for the least possible total co
st. So to
be successful the company must to turn the company s Supply Chain into its Value
Chain. By adding value and cutting waste at any and every point in the Supply Ch
ain,
the company can easily create greater value in its end result, making it more va
luable to
its customers and/or end users. And Value Chain Management is much more than jus
t
optimizing each step in the supply chain. For example, say the company wants to
switch to a less expensive package. It might save the company s money, but it may
cost
its customer or the end user more to dispose of it and it might make its product
look
cheap , both of which would detract from the overall value of the company s product.
Charu Chandra and Sameer Kumar in their case study Supply chain
management: An International Journal (2000) described application of a supply chai
n
analysis methodology for managing waste due to inventory-related logistics in a
garment supply chain of the US textile industry. The focus of the case study is
on a
systemic review of logistics operations in the textile garment supply chain. Its
scope for
this paper is to manage logistics due to synchronization of activities in the fu
lfillment of
customer demand and resultant replenishment schedules. Supply chain analysis is
directed at increasing industrial competitiveness by reducing product throughput
time,
lead time, stock-outs and removal of non value added activities resulting in inc
reased
market share and profit margins. Supply chain analysis examines ways to improve
interactions and linkages between supply chain members through application of
analysis methods and simulation tools to predict integrated performance of the s
upply
chain. The supply chain includes manufacturing and sales businesses from raw
materials to sale of goods, to the consumer. The goal of the analysis is to iden
tify and
quantify changes resulting in increased competitiveness through co-ordination of
supply chain members.
Dr. Arindam Das in the research The competitiveness of Vietnamese Apparel
industry (May, 2001), published by Pearl Academy of Fashion, India has some ideas
about the strengths and weaknesses of Vietnamese garment companies. According to
Arindam Das, although Vietnamese garment companies have used a high production
technology and the productivity of garment companies is very high but garment
companies in Vietnam are lack of international marketing experience and the perc
ent of
CMT products is high so when quota lifted Vietnam will face a difficult situatio
n. With
Vietnamese garment companies moving, or at least trying to move towards more and
more FOB exports (and implied independent design development), a sound
merchandising department will be an extremely crucial link between a (currently
strong) production set up and a (nascent) design department. Although most appar
el
organizations in Vietnam speak strongly of the need to develop fashion design
capabilities, the number of companies that talk of merchandising as an important
function is relatively very few. Most companies have little or no experience in
sourcing
fabrics, trims or accessories. It means the inbound logistics and marketing are
still weak
in Vietnamese garment companies.
In the report of Working Group of Economic and Commercial Counselors of the
European Union about the economy of Vietnam, 2005 the state own and private sect
or
is shown very clearly. This report also analysis about the recent economic perfo
rmance
of Vietnam as well as an overview of development in important economic sectors.
In
the analysts opinion, enterprises should be more competitive in their prices, add
value
to their products, and increase their capacity to meet customers' orders. Govern
ment
agencies should contribute by continuing their administrative reforms and making
more
efforts to cut rates. Enterprises should also expand promotions and should devel
op
strategies to attract major customers. In that report other issues also reported
such as the
rates of cargo transport, electricity, water supply and waste disposal are still
30-35%
higher for Vietnamese garment manufacturers than the regional average. They
recommend that information about legal, social and customary specifics of the
respective markets and sub-markets must improve and has to be disseminated more
effectively throughout the sector. Vietnamese enterprises should increase import
ers'
confidence in their products by upgrading quality and reducing delivery times.
However, good quality, fair pricing and good business practices are not enough a
s
consumers in EU countries are increasingly paying attention to the policies appl
ied by
manufacturers. This requires transparency vis-à-vis importers with regard to labor
,
including salaries, work-place safety and other social accountability standards.
In order
to compete with Chinese exporters, domestic enterprises need to focus on niche
markets, which demand high value products in limited volumes, including Japan, S
audi
Arabia, Bahrain, the United Arab Emirates, Kuwait, South Africa, South Korea and
Australia.
Vietnam in the global garment and textile value chain: impacts on firms and
workers was written by a group experts Khalid Nadvi, John T. Thoburn, Bui Tat
Thang, Nguyen Thi Thanh Ha, Nguyen Thi Hoa, Dao Hong Le, Enrique Blanco De
Armas (2003). In their report, Vietnam is a significant exporter of garments to
the EU
and Japan, and now to the US too. Based on interviews with firms and buyers, and
analysis of trade data, this paper traces how Vietnamese garment and textile fir
ms are
inserted into global garment and textile value chains. It considers ties between
the
Vietnamese garment and textiles industries. And, it reflects on how the nature o
f
insertion into global value chains leads to differentiated gains for state owned
and
private enterprises, and for textile and garment workers. The research also talk
s about
Challenges to Vietnamese firms in the world garment and textile value chain, and
the
implications for alleviating poverty. In their research, the global garment and
textile
industries face changing international trade regimes, concerns with labor standa
rds, new
competitors and forms of competition. These challenges have a differentiated imp
act on
developing-country producers and workers. This paper uses a global value-chain
framework to analyze the Vietnamese experience. It maps Vietnam's changing posit
ion
in the global industry, and probes ties between Vietnamese firms and global buye
rs. It
explores links within the Vietnamese garment and textiles sectors, and considers
the
impact of global challenges on Vietnamese firms and workers. This helps distingu
ish
who are the potential 'winners' and 'losers'.
In Preferential treatment in a transition economy: the case of state-owned
enterprises in the textile and garment industry in Vietnam , Hege Merete Knutsen,
and
Cuong Manh Nguyen Department of Sociology and Human Geography University of
Oslo P.O. Box 1096 Blindern NO-0317 Oslo Norway examines the role and
contribution of preferential treatment of state enterprises to growth in the tex
tile and
garment industry. State enterprises are still the largest single sector in the t
extile and
garment industry in Vietnam, but are losing market shares to private Vietnamese
enterprises and foreign-owned enterprises despite the benefits that they enjoy.
However, in the present context of economic transition and keen competition in t
he
global market, well-managed state enterprises are attractive to foreign buyers o
f their
products and have a role to play in market access abroad. This contrasts with th
e
neoliberal notion that privatization is essential to competitiveness in the glob
al market.
CHAPTER 3
RESEARCH METHODOLOGY

The purpose of this chapter is to present the methodology of collecting and

interpreting data. This chapter is divided into 2 sections:
Section 1: Conceptual framework
Section 2: Methodology
3.1 Conceptual framework
Based on the value chain model of Micheal E. Porter and garment concepts of
Gini Stephens Frings, the researcher have developed a conceptual model for garme
nt
companies in Vietnam as seen in Figure 2-17.
Inbound logistics: Receivingfabric and
accessory from fabric suppliers, storing and
handling fabric and accessory, inventory control,
transportation scheduling.
Operation: Production scheduling, pattern
making, spreadingand cutting, garment
assembly,finishing and packaging,machine
maintenance.
Outbound logistics: warehousing, order
fulfillment, transportation, distribution
management to bring productstocustomers.
Marketing and sales: product, price strategy,
place, promotion, retail management, wholesale
management
Services: customer support, complaint handling
Primary
activities
The value chain
of garment
companies in
Vietnam
Infrastructure: General management, planning
management, financial management, quality
management, etc.
HRM: Recruiting, worker training,
compensationof employeesand managers
Technology Development: Researchand
Development, Process automation, design.
Procurement: Procurement of fabric and
accessory, servicing, building, machine, etc
Support
activities
Figure 2-17: Value chain model of garment companies
Source: Adopted from the value chain model of E. Porter (1985) and garment
concepts of Gini Stephens (2002) by researcher
3.2 Sources of data
The study used two main sources of data: secondary and primary
3.2.1 Secondary data
The data of garment companies in Vietnam were explored based on public
databases like annual reports of Vietnam Textile & Apparel Association (VITAS),
Vietnam National Textile and Garment Corporation (VINATEX), Ministry of Trade of
Vietnam (MOT), Vietnam Department of Custom, Year books of General Statistic
Office (GSO), Textile and Garment planning report to 2010 and 2020 of Economic a
nd
Technical Textile and garment institute VINATEX and European Union s report on
Vietnam.
3.2.2 Primary data
This source includes two types: interviews and questionnaires:
Interviews were implemented 7 garment experts: two policy makers from MOT
and Ministry of Industry, 1 expert from VINATEX, 1 expert from VINATAS, two
garment experts and 1 chairman from big garment companies.
Questionnaires were developed and launched on the population of 317 garment
companies in Vietnam (The sample size is calculated in following part).
Interviews and questionnaires were designed to explore value chain
management of garment companies in Vietnam base on the framework mentioned
above. With the result from added value activities analysis, the study analyzed to
point out the value chain management of garment companies in Vietnam.
3.3 Sampling, design and measurement of questionnaire and interview
3.3.1 Sampling, design and measurement of questionnaire
Sampling and sample size
The sampling to conduct questionnaire is the garment companies in Vietnam.
Based on list of the Ministry of Commerce (2004) there are 717 garment companies
are
in operate in with 117 state-owned enterprises.
Given it was not possible to contact the whole population, the best option was t
o
concentrate on the 117 state own, 200 non state own and FDI garment companies in
Vietnam. A random sample of companies was selected from 317 garment exporting
companies. Yamane (1973) recommended the formula for random sample as below.
N
n =
1 + N e2

Where, n is sample, N is population, e2 is probability of error.

The sample size can be calculated according to the recommendation as follow.

317
n = = 176.85
1 + 317*(0.05)2

With N = 317, e = 5% (95 percent confidence). Hence the sample size for conducti
ng
questionnaire should be 177 companies.
Questionnaire design
Questionnaire was designed to match with the objectives of the study and
conceptual framework. A short questionnaire with conceptually clear and concise
statements is judged to be desirable for both the respondents and the researcher
. The
questionnaire consists of a series of questions that shown in Appendix 4.
To ensure the accuracy, the questionnaire was developing through the process as
following.
1.
Specify information will be sought base on the objectives of the study,
the value chain model mentioned in chapter 2
2.
Determine type of questionnaire
3.
Determine content of individual questions
4.
Determine wording of each question
5.
Determine sequence of questionnaire
6.
Draft questionnaires based above factors
7.
Pretest draft questionnaires with foreign friend and revise.
8.
Submit the draft questionnaires to the advisors
9.
Advisor check, correct and approves the questionnaires
10. The questionnaire are translated into Vietnamese language
11. Pilot testing to make sure the respondent understand and interpret the
questionnaire in the same way.
Measurement of conducting questionnaire
The main type of questionnaire is questionnaire with 5 point rating scale. The
questionnaires with 5 point rating scale were used to measure respondents evaluat
ion
by asking them the degree of performance with statements in the questionnaire th
at
ranked from (1) not effective at all (or not important at all) to (5) very effec
tive (or very
important). Each question consisted of many activities that mentioned above base
d on
literature review, especially the value chain model to capture the construct of
interest.
The higher the score the better the activities are done. 5 point scales will be
used to
measure activities in a way such that mean scores could be calculated to show ho
w the
garment companies in Vietnam manage activities in their value chain. The researc
her
defines the criteria to measure level of variable according to the separate of f
ive levels
following Likert s scale.
Not effective at all Very effective
1 2 3 4 5
Not effective at
all
Slightly
ineffective
Moderately
effective
Effective Very
effective
3.3.2 Sampling, design and measurement of interview
Interview was implemented with 7 policy makers and garment experts of
following organizations:
1. The Export Import Department, Ministry of Trade of Vietnam
Mr. Le Van Thang Deputy Head of Export-Import Department
2. Legislative Department, Ministry of Industry
Mr. Nguyen Tien Vy Head of Legislative Department.
3. Textile and Garment Research Institute Vietnam National Textile and
Garment Cooperation.
Dr. Tran Van Quyen Textile and Garment consultant.

4. Vietnam Textile and Apparel Association

Mr. Bui Xuan Khu Head of Advisory Committee
5. German Garment Training Center
Dr. Till Freyer Chairman of Germen Garment Training Center, Asia s
garment analyst, Indonesia.
6. Germen CIM Integrated expert program,
Ms. Christiane Chult Garment expert.
7. Garment Company No. 10
Ms. Dang Phuong Dung Director of Garment Company No. 10
Interviewing garment experts from many sources can help researcher have more
clear and reliable information to analyze and recommend suitable policies to bot
h
government and firm level.
Firstly, a formal letter was sent to every interviewer to introduce about
interviewer and purpose of interview after that the researcher called to intervi
ewees to
make appointment. The interviews were done base on topic mentioned in appendix 2
.
Information of interviews was recorded and the result are summarized and analyze
d in
next chapter.
3.4 Data collection method
The second data: The second data of garment companies in Vietnam had been
explored based on public databases and internet.
The primary data: Interviews were conducted with asking for assistance from
Hung Yen University of Technical Education, The Chamber of Commerce and Industry
of Vietnam. The time for interview was from 10th to 20th of December 2005. The m
ain
topics for interview are shown in Appendix 2. Questionnaires were sent directly,
by
mail, email and fax to 317 garment companies that located in every area in the c
ountry
accompanied with the letter of recommendation of Hung Yen University of Technica
l
Education. The time for conducting questionnaires was from 15th December, 2005 t
o
15th January, 2006.
3.5 Research analysis, statistics and interpretation of questionnaire
With 5 point scales, the interval for breaking the range in measuring each
variable is calculated by:
5 1
------------- = 0.8
5
It means items with scores fall between the ranges of:
1.00 1.80: Not at all effective (or not at all important) level
1.81 2.60: Slightly ineffective (or slightly unimportant) level
2.61 3.40: Moderately effective (or moderately important) level
3.41 4.20: Effective (or important) level
4.21 5.00: Very effective (or very important) level.
Data from questionnaires were processed by SPSS program in term of
frequency, mean, standard deviation (descriptive statistic) and t-test. The pres
entation
of result and data analysis is fully discussed in next chapter.
CHAPTER 4
RESULTS OF ANALYSIS

In this chapter, results of the data analyses are presented in 4 sections:

Section 1: Summarize the response rate and describe the demographic data of
garment companies in Vietnam by using descriptive statistic (frequency, percenta
ge,
mean).
Section 2: Analyze the value chain management of garment companies in
Vietnam by using descriptive statistic (mean, Standard Deviation).
Section 3: Compare means between data variables at significant level 0.05 by
using t-test and weighted average of two groups: respondents and experts.
Section 4: Summarizes the opinions of senior experts
Section 5: Analyze the secondary data.
Symbol of Data Analysis
N = Amount of the peoples
X = Mean
S.D. = Standard deviation
t = t-distribution.
Sig. = Data valuable significant level of 0.05
4.1 Response rate and demographics of garment companies in Vietnam
4.1.1 Response rate summarization
Questionnaire were conducted in the end of the year 2005 and beginning of year
2006, a peak time of every garment companies so the response rate expected to be
lower than normal. Time of conducting questionnaire is about 1 month from 15th
December 2005 to 15th January 2006. By seeing the difficulty of low responses ra
te if
conducted by mail, the researcher tried to ask colleges and friends to distribut
e and
collect questionnaire directly from garment companies. The researcher also made
appointment, came and took questionnaire directly from the companies. The survey
also was conducted by other tools: mail, email, interview by phone and fax. Afte
r
distributing 317 questionnaires based on the number of population that the resea
rcher
already mentioned in chapter 3 (317 garment companies in Vietnam), 188 responses
were received, leading to a response rate of 59.3 percent. There are 15 disquali
fied
questionnaires as the respondents didn t complete all questions in questionnaire.
So the
response rate is 55 percent. This response rate can be considered satisfactory i
n
comparing with the excepting response rate of conducting survey by mail in Vietn
am is
usually from 50 to 65 percent (Nguyen Duc Toan, 2001).
173 qualified responses are considered satisfaction because the sample size
requirement for this study is 177 for 95 percent confidence (discussed in chapte
r 3).
4.1.2 Position of respondents and demographics of firms
Data in this part have been organized into different types according to the
distinctive characteristics of the variables under consideration.
Table 4.1 Position of respondents
Respondents position Frequency Percent
Director
Vice Director
Import-Export Manager
Marketing Manager
Production Manager
Total
33
29
86
12
13
173
19.1
16.8
49.7
6.9
7.5
100.0
Position
Production Manager
7.5%
6.9%
49.7%
16.8%
19.1%
Marketing Manager
Import-Export Manage
Vice Director
Director
Figure 4-1: Position of respondents
Table 4.1 shows the position of the respondents. Of the 173 qualified responses,
the majority of the respondent is the top management positions: export managers
cover
49.7 percent with 86 respondents and follow by director 19.1 percent and vice di
rector
16.8 percent. Production managers occupy 7.5%, and marketing managers occupy onl
y
6.9%. Marketing managers occupy the smallest percent of total respondents becaus
e
there are not many companies that have marketing Departments in their organizati
onal
chart.
Table 4.2: Firms experiences in Vietnam
No of operating years Frequency Percent
Less than 5 years
5-10 years
More than 10 years
Total
23
55
95
173
13.3
31.8
54.9
100.0
No of operating years
less than 5 years
13.3%
54.9%
31.8% more than 10 years
5-10 years
Figure 4-2: Firm s experiences in Vietnam.
Table 4.2 shows numbers of years that the companies operate in garment trade
field in Vietnam. Most of respondents have experience more than 10 years (54.9
percent), follow by 5-10 years experience (31.8 percent) and less than 10 years
(13.3
percent). Since Vietnam apply the Doi moi policy in 1986, Vietnam started to do
trade with other country. At that time, most garment companies were established
by the
government. In past years, the export turnover from garment industry grew rather
fast,
especially after the VN-US Bilateral Trade Agreement came into effect in 1995.
Table 4-3: Location of garment companies
Location of companies Frequency Percent
The North of Vietnam
The Middle of Vietnam
The South of Vietnam
Total
94
11
68
173
54.3
6.4
39.3
100.0
Locations of garment companies
39.3%
54.3%
The South of Vietnam
The Middle of Vietna
The North of Vietnam
6.4%
Figure 4-3: Location of garment companies in Vietnam
Table 4-2 shows locations of 173 garment companies. Most of these companies
locate in The North of Vietnam (with 94 companies, percent = 54.3), follows by T
he
South of Vietnam with 68 companies, occupy 39.3% and finally is The Middle of
Vietnam with 11 companies occupy 6.4%. The questionnaire were sent mainly in the
North and the South of Vietnam, especially, near Hanoi capital and Ho Chi Minh c
ity
two biggest industrial zone in Vietnam and the researcher come to meet directly
people
in most of garment companies in Hung Yen and Hanoi so the response rate in The
North of Vietnam seem to be highest.
Table 4-4: Type of respondents companies
Type of respondents companies Frequency Percent
State owned enterprise
Non state-owned enterprise
FDI
Total
48
91
34
173
27.7
52.6
19.7
100.0
Type of com
FDI
19.7%
52.6%
27.7%
Non state-owned ente
State owned enterpri
Figure 4-4: Type of respondents company
Table 4-4 shows type of 173 respondents garment companies. There are 91
respondents from non-state owned garment companies (occupy 52.6%), follows by 48
respondents from state-own garment companies with 27.7% and 34 respondents from
FDI garment companies with percent = 19.7%.
Table 4 -5: Type of orders
Percent of FOB Frequency Percent
FOB: 0-25%
FOB: 25-50%
FOB: 50-75%
FOB: 75-100%
Total
155
12
4
2
173
89.6
6.9
2.3
1.2
100.0
100
80
60
40
20
0
Percents of FOB
Figure 4-5 Percents of FOB order in garment companies in Vietnam
Table 4-5 shows the type of order. Of 173 qualify response, 155 companies has
0-25% of their order is FOB (89.6%), mean that in those companies CMT order is 7
5100%.
Follow by that is the percent of FOB from 25 to 50 percent with 12 responses
(6.9%), 4 response have FOB 50-75% (2.3%), 2 responses have FOB 75-100% (1.2%).
0-25% 25-50% 50-75% 75-100%

Percent
Table 4-6: The major market
Markets Frequency Percent
Local market
Oversea markets
Total
7
166
173
4.0
96.0
100.0
Major market
Local market
Figure 4-6: Major markets of garment companies in Vietnam
Table 4-6 shows the major market of respondents companies. There are 166 companie
s
have the major markets are oversea markets (96%), while only 7 companies concent
rate
on the local market with 4% of 173 qualify respondents.
96.0%
4.0%
Oversea markets
4.2 Analysis of value chain management of garment companies in Vietnam
The perceived effectiveness of activities on the value chain management are
measured on a five-point Likert type scale (1 = Not effective at all; 5 = Very e
ffective).
Very effective = (5)
Effective = (4)
Moderately effective = (3)
Slightly ineffective = (2)
Not effective at all = (1)
Table 4-7: Width of Class Interval I
Not effective at all
(1)
Slightly ineffective
(2)
Moderately effective
(3)
Effective
(4)
Very effective
(5)
1.00 1.80 1.81 2.60 2.61 3.40 3.41 4.20 4.21 5.00
4.2.1 The primary activities management
4.2.1.1 Inbound logistics
Table 4- 8: Inbound logistics management of garment companies in Vietnam
Activities N Mean S.D Indicator
Receiving fabric
Storing
Handling system
Inventory control
Transportation scheduling
Inbound logistics management
173
173
69
74
173
173
4.0809
3.3006
2.7536
2.7162
3.3931
3.2486
.78824
.91617
.77471
.83617
.99204
.81523
Effective
Moderately effective
Moderately effective
Moderately effective
Moderately effective
Moderately effective
Table 4-8 shows respondents opinions on the inbound logistics management in
the value chain of garment companies in Vietnam. In this case, the respondents w
ere
asked to rate their inbound logistics management from 1 (least effective level)
to 5
(most effective level)
The mean of the opinions score for each variable indicates the effective level o
f
inbound logistics management, which the S.D indicates the deviation from the cen
tral
value (mean score). The table shows that all of 173 companies have receiving fab
ric,
storing and transportation scheduling activities but only 69 companies have hand
ling
system and 74 companies have inventory control activities. Receiving fabric acti
vity in
Garment Company is considered to be done efficiently with mean is 4.08 and S.D i
s
0.78. Others are moderately efficient. They are storing (mean = 3.30, S.D = 0.92
),
handling (mean = 2.75, S.D = 0.77), inventory control (mean = 2.72, S.D = 0.84),
transportation scheduling (mean = 3.39, S.D = 0.99). In conclusion, inbound logi
stics is
managed moderately efficient with mean = 3.25, S.D = 0.82.
4.2.1.2 Operation management
Table 4-9: Production management of garment companies in Vietnam.
Activities N Mean S.D. Indicator
Production scheduling
Pattern making
Spreading and cutting
Garment assembly
Finishing and packaging
Machine maintenance
Production
173
173
173
173
173
173
173
3.4046
3.3642
3.6185
3.6532
3.2254
3.3237
3.4740
.87496
1.19606
1.00238
.85314
.90286
1.02263
0.50077
Effective
Moderately effective
Effective
Effective
Moderately effective
Moderately effective
Effective
Table 4-9 shows respondents opinions on the production management in the
value chain of garment companies in Vietnam. In this case, the respondents were
asked
to rate their production management from 1 (not effective at all) to 5 (very eff
ective
level)
The mean of the opinions score for each variable indicates the effective level o
f
production management, which the S.D indicates the deviation from the central va
lue
(mean score)
In the table 4-8 Production scheduling (mean = 3.40, S.D = 0.87), spreading and
cutting (mean = 3.61, S.D = 1.00) garment assembling (mean = 3.65, S.D = 0.85) a
re
managed effectively however their means only a little above the moderately effec
tive
level. While others are managed moderately effective, they are pattern making (m
ean =
3.36, S.D = 1.19), finishing and packaging (mean = 3.23, S.D = 0.90), machine
maintenance (mean = 3.32, S.D = 1.02). In general, production is managed somewha
t
between moderately effective and effective (mean = 3.47, S.D = 0.50).
4.2.1.3 Outbound logistics management.
Table 4-10: Outbound logistics management of garment companies in Vietnam
Activities N Mean S.D. Indicator
Warehousing
Order fulfillment
Transportation
Outbound logistics
173
173
173
173
3.3006
3.4855
2.9827
3.2717
.94736
.83253
.85232
.74017
Moderately effective
Effective
Moderately effective
Moderately effective
Table 4-10 shows respondents opinions on the outbound logistics in the value
chain of garment companies in Vietnam. In this case, the respondents were asked
to rate
their outbound logistics management from 1 (not effective at all) to 5 (very eff
ective
level).
The mean of the opinions score for each variable indicates the effective level o
f
production management, which the S.D indicates the deviation from the central va
lue
(mean score).
Table 4-10 shows that order fulfillment (mean = 3.48, S.D = 0.83) is
management effectively while two others are managed moderately effective. They a
re
warehousing (mean = 3.30, S.D = 0.95) and transportation (mean = 2.98, S.D = 0.8
5).
In general, outbound logistics is managed moderately effective (mean = 3.27, S.D
=
0.74).
4.2.1.4 Marketing and sales management
Table 4-11: Marketing management of garment companies in Vietnam
Activities N Mean S.D Indicator
Product management
Price strategy management
Place management
Promotion management
Marketing management
173
173
173
173
173
1.9827
2.6301
1.9422
1.9249
2.2543
.96131
.97146
.90033
.67352
.65062
Slightly ineffective
Moderately effective
Slightly ineffective
Slightly ineffective
Slightly ineffective
Table 4-11 shows respondents opinions on the marketing mix in the value chain
of garment companies in Vietnam. In this case, the respondents were asked to rat
e their
marketing mix management from 1 (not effective at all) to 5 (very effective leve
l) as
following range
The mean of the opinions score for each variable indicates the effective level o
f
variables of marketing mix, which the S.D indicates the deviation from the centr
al
value (mean score).
The table shows that three elements of marketing mix are managed not too
effective. They are product (mean = 1.98, S.D = 0.96), place (mean = 1.94, S.D =
0.90)
and promotion (mean = 1.92, S.D = 0.67). Only price is managed moderately effect
ive
with mean = 2.63, S.D = 0.97. In general, marketing is managed slightly ineffect
ive
with mean = 2.25.
Table 4-12: The sales management of garment companies in Vietnam
Activities N Mean S.D Indicator
Retail management
Wholesale management
Sales management
105
98
173
2.0463
2.3265
2.1864
.82467
.71473
.75153
Slightly ineffective
Slightly ineffective
Slightly ineffective
Table 4-12 shows respondents opinions on the sales in the value chain of
garment companies in Vietnam. In this case, the respondents were asked to rate t
heir
sales management from 1 (not at all effective level) to 5 (very effective level)
.
The mean of the opinions score for each variable indicates the effective level o
f
sales management, which the S.D indicates the deviation from the central value (
mean
score).
The table shows that only 105 companies have retail activity and 98 companies
have wholesale activity. Retail management in these 105 companies is managed not
very effectively with mean is 2.05, S.D is 0.82 and wholesale management in 98
companies is managed not too effectively too (mean = 2.33, S.D = 0.71). In gener
al,
sale management of those companies is managed slightly ineffectively.
4.2.1.5 Services management
Table 4-13: Services management of garment companies in Vietnam
Activities N Mean S.D Indicator
Customer support
Complain handling
Services
173
173
173
2.4393
3.2813
2.7225
1.00757
.77186
.69333
Slightly ineffective
Moderately effective
Moderately effective
Table 4-13 shows respondents opinions on the services in the value chain of
garment companies in Vietnam. In this case, the respondents were asked to rate t
heir
services management from 1 (not at all effective level) to 5 (very effective lev
el) on
two variables: customer support and complain handling. As following range
The mean of the opinions score for each variable indicates level of services
management, which the S.D indicates the deviation from the central value (mean
score).
The table shows that services are managed moderately efficient (mean = 2.72,
S.D = 0.69). Customer support variable is managed not too efficient with mean =
2.4393, S.D = 1.01 and complain handling variable is managed moderately efficien
t
with mean = 1. 64, S.D = 0.49.
4.2.2 Support activities management
4.2.2.3 Infrastructure management
Table 4-14: Infrastructure management of garment companies in Vietnam.
Activities N Mean S.D Indicator
General management
Planning management
Finance management
Quality management
Infrastructure
173
173
173
173
173
3.1098
3.1156
3.2486
3.3873
3.2486
1.05905
1.09355
.87707
.86620
.81523
Moderately effective
Moderately effective
Moderately effective
Moderately effective
Moderately effective
Table 4-14 shows respondents opinions on the infrastructure in the value chain
of garment companies in Vietnam. In this case, the respondents were asked to rat
e their
infrastructure management from 1 (not at all effective level) to 5 (very effecti
ve level)
The mean of the opinions score for each variable indicates effective level of th
at
variable, which the S.D indicates the deviation from the central value (mean sco
re).
In the table, all of four infrastructures are managed moderately effective. They
are general management (mean = 3.11, S.D = 1.06), planning management (mean =
3.12, S.D = 1.09), finance management (mean = 3.25, S.D = 0.88), quality managem
ent
(mean = 3.39, S.D = 0.87). In conclusion, the infrastructure is manage moderatel
y
effective with mean is 3.25.
4.2.2.2 Human resource management
Table 4-15 The Human resource management of garment companies in Vietnam.
Activities N Mean S.D Indicator
Recruiting
Worker training
Staff training
Salary and compensation
HRM
173
109
75
173
173
3.5145
2.3119
2.7067
2.5723
2.7822
1.10815
.99719
1.17143
1.34758
.48571
Effective
Slightly ineffective
Moderately effective
Slightly ineffective
Moderately effective
Table 4-15 shows respondents opinions on the human resource management in
the value chain of garment companies in Vietnam. In this case, the respondents w
ere
asked to rate their human resource management from 1 (not at all effective) to 5
(very
effective).
The mean of the opinions score for each variable indicates level of human
resource management, which the S.D indicates the deviation from the central valu
e
(mean score).
In the table, recruiting is managed effectively with mean = 3.51, S.D = 1.11.
Staff training is somewhat effective with mean = 2.71 but both worker training (
mean =
2.31, S.D = 0.99) and salary and compensation (mean = 2.57, S.D = 1.35) are less
effective. In general, human resource management is at somewhat effective level
with
mean = 2.78.
4.2.2.1 Technology development
Table 4-16: Technology development in garment companies in Vietnam.
Activities N Mean S.D Indicator
Design and redesign
Sewing machine
Cutting machine
Iron system
Support equipment
Technology development
173
173
173
173
173
173
1.5000
3.7052
3.2023
3.3295
2.4509
2.7688
.50671
.88254
1.08884
1.02362
1.33563
.5538
Not at all effective
Effective
Moderately effective
Moderately effective
Not at all efficient
Moderately effective
Table 4-16 shows respondents opinions on the technology development in the
value chain of garment companies in Vietnam. In this case, the respondents were
asked
to rate their technology development from 1 (not at all effective level) to 5 (v
ery
effective level).
The mean of the opinions score for each variable indicates level of technology
development, which the S.D indicates the deviation from the central value (mean
score).
The table shows that design and redesign is at not good at all level with mean =
1.50,
S.D = 0.50. Sewing machine is good with mean = 3.71, S.D = 0.88. Cutting machine
(mean = 3.20, S.D = 1.09) and iron system (mean = 3.33, S.D = 1.02) are somewhat
good but support equipment is not too good with mean = 2.45, S.D = 1.34. In
conclusion technology development is somewhat effective in garment companies in
Vietnam with mean = 2.77, S.D = 0.55.
4.2.2.4 Procurement management
Table 4-17: Procurement of garment companies in Vietnam
Activities N Mean S.D Indicator
Procurement of materials
Procurement of machine
Procurement of services
Procurement of stationary
Procurement
173
173
173
173
173
2.2428
3.4913
3.0694
3.2023
3.0462.93325
.95002
.90595
.93361
.80561
Not too effective
Effective
Moderately effective
Moderately effective
Moderately effective
Table 4-17 shows respondents opinions on the procurement management in the
value chain of garment companies in Vietnam. In this case, the respondents were
asked
to rate their procurement management from 1 (not at all effective level) to 5 (v
ery
effective level).
The mean of the opinions score for each variable indicates effective level of th
at
variable, which the S.D indicates the deviation from the central value (mean sco
re).
In the table, procurement of materials is less effective (mean = 2.24, S.D =
0.93), procurement of machine is effective with mean = 3.5, S.D = 0.95. Others a
re
managed moderately effective. They are procurement of services (mean = 3.07, S.D
=
0.91), procurement of stationary (mean = 3.20, S.D = 0.93). In conclusion, procu
rement
with mean = 3.05 is manage somewhat effectively.
4.3 Comparison between respondents and experts perceptions on importance of
activities in the value chain of garment companies in Vietnam.
Since the one of objectives of this study is to recommend policies to improve
the value chain management of garment companies in Vietnam. The researcher asked
respondents and experts to rate the importance of primary activities and support
activities on the value chain management of garment companies in Vietnam. t-test
s
analysis is utilized for comparison between the importances of activities toward
s the
value chain management. The perceived importance of activities on the value chai
n
management are measured on a five-point Likert type scale (1 = Not important at
all; 5
= Very important).
Most important = (5)
Important = (4)
Moderately Important = (3)
Rather Unimportant = (2)
Least important = (1)

Table 4-18: Width of Class Interval II

Least important
(1)
Rather Unimportant
(2)
Moderately important
(3)
Important
(4)
Most important
(5)
1.00 1.80 1.81 2.60 2.61 3.40 3.41 4.20 4.21 5.00
107
4.3.1 Comparison between respondents and experts perceptions on
importance of primary activities in the value chain of garment companies in
Vietnam.
A series of t-tests is conducted on the means of the two groups' ratings of the
importance of 5 primary activities (Inbound logistics, operations, outbound logi
stics,
marketing and sales, and services).
Table 4-19: Independent Sample Test of primary activities
Activities
Levene's Test
for Equality of
Variances
t-test for Equality of Means
F Sig. t df
Sig. (2tailed)
Mean
Difference
Std. Error
Difference
Inbound
logistics
Equal variances
assumed
1.347 .247 .282 178 .779 .0760 .26985
Equal variances
not assumed
.363 6.873 .727 .0760 .20902
Operation Equal variances
assumed
1.477 .226 1.730 178 .085 .2998 .17325
Equal variances
not assumed
1.463 6.343 .191 .2998 .20486
Outbound
logistics
Equal variances
assumed
.036 .849 .377 178 .707 .1107 .29360
Equal variances
not assumed
.365 6.462 .727 .1107 .30295
Sales and
marketing
Equal variances
assumed
7.829 .006 -1.208 178 .229 -.3311 .27413
Equal variances
not assumed
-2.165 7.885 .63 -.3311 .15298
Services Equal variances
assumed
.060 .807 -3.753 178 .000 -1.1949 .31838
Equal variances
not assumed
-4.453 6.722 .003 -1.1949 .26835
Table 4-20: Group Statistics of primary activities
Group
Inbound
logistics Operation
Outbound
logistics
Sales and
marketing Service
Respondents N 173 173 173 173 173
0 0 0 0 0
Mean 3.65 4.73 3.68 4.53 2.95
S.D 0.71 0.45 0.76 0.72 0.83
Experts N 7 7 7 7 7
0 0 0 0 0
Mean 3.57 4.43 3.57 4.86 4.14
S.D .53 .53 .79 .38 .69
4.3.1.1 Inbound logistics
Table 4-21: Inbound logistics
Groups
Importance Level
X S.D Indicator 1 2 3 4 5
Respondents Frequency 0 0 84 66 23
3.65 0.71 Important
Percent 0.0 0.0 48.6 38.2 13.2
Experts
Frequency 0 0 3 4 0
3.57 0.53 Important
Percent 0.0 0.0 42.9 57.1 0
As Sig in Levene s Test for Equality of Variances is 0.247 (table 4-19),
which is more than 0.05, it would be expected to use result in first line of the
table.
The table 4-19 shows that Sig (2-tailed) is 0.779, which is more than 0.05. It
would be concluded that there is not a statistically significant difference in t
he mean
inbound logistics scores for respondents from garment companies ( X = 3.65, SD=
0.71) and garment experts ( X = 3.57; SD = 0.53) (Table 4-21). The mean differen
ce is
0.076 (table 4-19)
It can be seen that both respondents and experts considered inbound
logistics playing an important role in the value chain of garment companies in V
ietnam.
However, this variance is rated a little bit more important for respondents than
experts.
4.3.1.2 Operations
Table 4-22: Operations
Groups
Importance level
X S.D Indicator 1 2 3 4 5
Respondents Frequency 0 0 0 47 126
4.73 0.45 Most Important
Percent 0 0 0 27.2 72.8
Experts Frequency 0 0 0 4 3
4.43 0.53 Most Important
Percent 0 0 0 57.1 42.9
As Sig in Levene s Test for Equality of Variance is 0.226, which is more
than 0.05, it would be expected to use result in first line of this variance in
the table 4

19.
The table 4-19 shows that Sig (2-tailed) is 0.085, which is more than 0.05. It
would be concluded that there is not a statistically significant difference in t
he mean
operation scores for respondents from garment companies ( X = 4.73, SD= 0.45) an
d
experts ( X =4.43; SD = 0.53) (table 4-22), the mean difference is 0.2998
Table 4-22 shows that, operation is rated as very important in the value
chain of garment companies in Vietnam for both respondents and experts. However,
operation is evaluated more important for respondents from garment companies tha
n
experts.
4.3.1.3 Outbound logistics
Table 4- 23: Outbound logistics
Groups
Importance LevelX S.D Indicator 1 2 3 4 5
Respondents Frequency 0 0 86 56 31
3.68 0.76 Important
Percent 0.0 0.0 49.7 32.4 17.9
Experts
Frequency 0 0 4 3 0
3.57 0.79 Important
Percent 0.0 0.0 42.9 57.1 0
As Sig in Levene s Test for Equality of Variances is 0.849 (table 4-19),
which is more than 0.05, it would be expected to use result in first line of the
table.
The table 4-19 shows that Sig (2-tailed) is 0.707, which is more than 0.05. It
would be concluded that there is not a statistically insignificant difference in
the mean
outbound logistics scores for respondents from garment companies ( X = 3.68, SD=
0.76) and garment experts ( X = 3.57; SD = 0.79) (Table 4-23). The mean differen
ce is
0.1107 (table 4-19)
It can be seen that both respondents and experts considered outbound
logistics playing an important role in the value chain of garment companies in V
ietnam.
However, this variance is rated a little bit more important for respondents than
experts.
4.3.1.4 Marketing and sales
Table 4-24: Marketing and sales
Groups
Importance level
X S.D Indicator 1 2 3 4 5
Respondents Frequency 0 0 23 36 114
4.53 0.72 Most Important
Percent 0 0 13.3 20.8 65.9
Experts Frequency 0 0 0 1 6
4.86 0.38 Most Important
Percent 0 0 0 14.3 85.7
As Sig in Levene s Test for Equality of Variance is 0.006, which is more
than 0.05, it would be expected to use result in first line of this variance in
the table 4

19.
The table 4-19 shows that Sig (2-tailed) is 0.229, which is more than 0.05. It
would be concluded that there is not a statistically significant difference in t
he mean of
marketing and sales scores for respondents from garment companies ( X = 4.53, SD
=
0.72) and experts ( X =4.86; SD = 0.38) (table 4-24), the mean difference is 0.3
3 (table
4-19)
Table 4-24 shows that, marketing and sales is rated as most important
activity in the value chain of garment companies in Vietnam for both respondents
and
experts. However, marketing is evaluated more important for experts than respond
ents
from companies.
4.3.1.5 Services
Table 4-25: Services
Groups
Importance level
X S.D Indicator 1 2 3 4 5
Respondents Frequency 0 47 87 39 0
2.95 0.83
Moderately
Important Percent 0 27.2 50.3 22.5 0
Experts Frequency 0 0 0 4 3
4.14 0.69 Important
Percent 0 0 0 57.1 42.9
As Sig in Levene s Test for Equality of Variance is 0.807, which is more
than 0.05, it would be expected to use result in first line of this variance in
the table 4

19.
The table 4-19 shows that Sig (2-tailed) is 0.000, which is less than 0.05. It
would be concluded that there is a statistically significant difference in the m
ean
operation scores for respondents from garment companies ( X = 2.95, SD= 0.83) an
d
experts ( X = 4.14; SD = 0.69) (table 4-25), the mean difference is 1.19
Table 4-25 shows that, respondents rated service as moderately important
activity in the value chain of garment companies in Vietnam but experts rated it
as an
important activity.
114
4.3.2 Comparison between respondents and garment experts perceptions
on importance of support activities in the value chain of garment companies in
Vietnam.
Table 4-26: Independent Samples Test
Activities Levene's Test
for Equality of
Variances t-test for Equality of Means
F Sig. t df
Sig. (2tailed)
Mean
Difference
Std. Error
Difference
Infrastructure Equal variances
assumed 0.828 .364 .413 178 .680 .1197 .29007
Equal variances
not assumed 1.711 6.256 .136 .5879 .34364
Human
Resource
Equal variances
assumed .013 .910 -
2.144 178 .033 -.5599 .26118
Equal variances
not assumed
-
2.684 6.815 .032 -.5599 .20858
Technology
Development
Equal variances
assumed 2.507 .115 -.296 178 .767 -.0875 .29553
Equal variances
not assumed -.416 7.058 .690 -.0875 .21041
Procurement Equal variances
assumed 1.814 .180 -
2.056 178 .041 -.5995 .29153
Equal variances
not assumed
-
2.244 6.600 .062 -.5995 .26712
Table 4-27: Group statistics
Groups
Technology
Development Infrastructure
Human
Resource
Management Procurement
Respondents N 173 173 173 173
0 0 0 0
Mean 4.34 3.98 4.01 3.54
S.D 0.77 0.75 0.68 0.76
Experts N 7 7 7 7
0 0 0 0
Mean 4.43 3.86 4.57 4.14
S.D .53 .90 .53 .69
4.3.2.1 Infrastructure
Table 4-28: Infrastructure
Groups
Importance Level
X S.D Indicator 1 2 3 4 5
Respondents Frequency 0 0 50 77 46
3.98 0.75 Important
Percent 0.0 0.0 28.9 44.5 26.6
Experts
Frequency 0 0 3 2 2
3.86 0.90 Important
Percent 0.0 0.0 42.8 28.6 28.6
As Sig in Levene s Test for Equality of Variances is 0.364 (table 4-26),
which is more than 0.05, it would be expected to use result in first line of the
table.
The table 4-26 shows that Sig (2-tailed) is 0.680, which is more than 0.05. It
would be concluded that there is not a statistically significant difference in t
he mean
infrastructure scores for respondents from garment companies ( X = 3.98, SD= 0.7
5)
and garment experts ( X = 3.86; SD = 0.90). The mean difference is 0.1197 (table
4-26)
It can be seen that both respondents and experts considered infrastructure
playing an important role in the value chain of garment companies in Vietnam.
However, this variance is rated a little bit more important for respondents than
experts.
4.3.2.2 Human Resource Management
Table 4-29: Human Resource Management
Groups
Importance Level
X S.D Indicator 1 2 3 4 5
Respondents Frequency 0 0 39 93 41
4.01 0.68 Important
Percent 0.0 0.0 22.5 53.8 23.7
Experts
Frequency 0 0 0 3 4
4.57 0.53
Most
Important Percent 0.0 0.0 0 42.9 57.1
As Sig in Levene s Test for Equality of Variances is 0.910 (table 4-26),
which is more than 0.05, it would be expected to use result in first line of the
table.
The table 4-26 shows that Sig (2-tailed) is 0.033, which is less than 0.05. It
would be concluded that there is a statistically significant difference in the m
ean HRM
scores for respondents from garment companies ( X = 4.01, SD= 0.68) and garment
experts ( X = 4.57; SD = 0.53). The mean difference is 0.5599 (table 4-26)
It can be seen that respondents considered HRM playing an important role
in the value chain of garment companies in Vietnam but experts considered HRM is
one of the most important activities in the value chain management of garment
companies in Vietnam.
4.3.2.3. Technology Development
Table 4-30: Technology Development
Groups
Importance Level
X S.D Indicator 1 2 3 4 5
Respondents Frequency 0 0 32 50 91
4.34 0.77 Very Important
Percent 0.0 0.0 18.5 28.9 52.6
Experts
Frequency 0 0 3 4 0
4.43 0.53 Very Important
Percent 0.0 0.0 42.9 57.1 0
As Sig in Levene s Test for Equality of Variances is 0.115 (table 4-26),
which is more than 0.05, it would be expected to use result in first line of the
table.
The table 4-26 shows that Sig (2-tailed) is 0.767, which is more than 0.05. It
would be concluded that there is not a statistically significant difference in t
he mean
inbound logistics scores for respondents from garment companies ( X = 4.34, SD=
0.77) and garment experts ( X = 4.43; SD = 0.53). The mean difference is 0.0857
(table
4-26)
It can be seen that both respondents and experts considered Technology
Development playing one of the most important role in the value chain of garment
companies in Vietnam. However, this variance is rated a little bit more importan
t for
experts than respondents.
4.3.2.4 Procurement
Table 4-31: Procurement
Groups
Importance Level
X S.D Indicator 1 2 3 4 5
Respondents Frequency 0 0 107 38 28
3.54 0.76 Important
Percent 0.0 0.0 61.8 22.0 16.2
Experts
Frequency 0 0 1 4 2
4.14 0.69 Important
Percent 0.0 0.0 14.3 57.2 28.6
As Sig in Levene s Test for Equality of Variances is 0.18 (table 4-26),
which is more than 0.05, it would be expected to use result in first line of the
table.
The table 4-26 shows that Sig (2-tailed) is 0.041, which is less than 0.05. It
would be concluded that there is a statistically significant difference in the m
ean
infrastructure scores for respondents from garment companies ( X = 3.54, SD= 0.7
6)
and garment experts ( X = 4.14; SD = 0.69). The mean difference is 0.5995 (table
4-26)
It can be seen that both respondents and experts considered procurement
playing an important role in the value chain of garment companies in Vietnam.
However, this variance is rated much more important for respondents than experts
.
4.4 Opinions of experts summarization
4.4.1 Strengths and weaknesses of garment companies in Vietnam
Strengths
1.
Low cost labors are available in Vietnam and can be good skill labors if they ar
e
trained well. Most of the workers in the Vietnamese apparel industry work
hardly. They are extremely disciplined and focused on their tasks. Most of the
factories had clean working facilities and surroundings.
2.
Technology in garment companies is much better than before. Sewing machines
and other equipments are new and modern.
3.
The relationship with big salesmen in the world is enhanced.
4.
Vietnam is considered as a stable, safe, and attractive destination of overseas
importers and investors.
Weaknesses
1.
Production and technology management is not very effectively.
2.
Productivity is low: there are 771,447 sewing machine with capacity 2,150
million products (standard shirt) and 902,000 workers are used with a nomarl
working time 300 days/year so the productivity is only about 8 shirts/day (The
yellow book of statistics of Statistics Department, 2004).
3.
The lack of adequate knowledge of English seems to be a big obstacle to further
and rapid development of workers skills. This has special significance for
personnel working as supervisors, managers, or CAD/CAM operators.
Inadequate knowledge of English leads to difficulties in communication with
buyers; understanding specifications; using advanced software; and in
developing global commercial and fashion awareness.
4.
Merchandising as a functional activity is largely missing in Vietnam, although
most garment companies are beginning to realize the importance of
merchandising as a nodal and important function. Most companies have little or
no experience in sourcing fabrics, trims or accessories, sampling, price
quotation.
5.
With regard to Marketing, only some companies are consciously marketing its
products, but even here, the larger focus of marketing seems to be the domestic,
and not the export market. Only a small percentage of apparel companies
participate regularly in international Trade Fairs (about 3 per year) in Hong
Kong, Taiwan, Singapore, Germany, USA, and Thailand. Trade mark of
Vietnamese garment companies are not yet well known in the world.
6.
Most of the raw materials (fabrics and trimmings) are imported, mostly from
countries such as Indonesia, Malaysia, Japan, UK, Korea, Taiwan, China, and
Hong Kong. Only a limited quantity and type (such as polyester) of fabrics are
sourced from within Vietnam.
7.
Uncompetitive about services, transportation fees compare with other
developing country.
4.4.2 Policy regime for garment companies in Vietnam
In this part, experts and policy makers were asked to list policy regime that
Vietnamese government has used to support for the development of textile and gar
ment
industry. In experts opinions although in the previous few years, the export turn
over
from garment industry grew rather fast, especially after the VN-US Bilateral Tra
de
Agreement came into effect, the textile and garment industry would be severely h
it as
all barriers for textile and garment products would be lifted for WTO country me
mbers
by 1 Jan 2005. This is causing unlimited supplies of garment and textile product
s from
developing countries to developed countries. The Government has approved the mas
ter
plan for the development of the Vietnam s textile and garment industry. This maste
r
plan, entitled the speed-up development strategy for Vietnam s garment and textile
industry up to 2010 for job promotion and increase of export turnover, has two m
ajor
policy objectives, (i) increasing value added of the Vietnam s garment industry, b
y
shifting production modality from FOB to CMT (ii) increasing domestic contents o
f
garment exports by actively investing in the cotton, spinning and weaving indust
ries.
Vietnamese government also has enforced many support regimes for the
development of Textile and garment industry. In term 55/2001 of the government,
the
textile and garment industry will be supported to 2010 with many projects invest
in to:
fiber production, fabric and accessories production, textile and garment mechani
c,
training and education, etc. The regime policies and their implementations are
illustrated in following table.
122
Table 4-32: Support policies in government s strategy to develop textile and garme
nt
industry in the term 55/2001/QD-TTg of Vietnamese government.
No. Content Term QD 55/CP
to 2005
Implementation to
31/12/2004
Note
1 Support textile and garment
industry by government
budget and ODA to invest
in to research, training and
infrastructure.
Total support in 4
years: 78,03 billion
vnd.
Fulfill 50%
of need
2 Support loans to invest in to
fiber, fabric and accessories
production.
Total investment:
35.000 billion vnd
Reach
20,3% of
plan.
3 VAT refund for fabric and
accessories that produced
domestic.
Being
prepared
4 Support 30% of operating
investment for state own
enterprises
2001: 121,85 bil. VND
2002: 754,55 bil. VND
2003: 685,40 bil. VND
2004: 313,66 bil. VND
2001: 34,3 bil. VND
2002: 13,8 bil. VND
2003: 13,4 bil. VND
2004: 9,5 bil. VND
5 Spend all of quota fees for
export market expansion.
Start to collect quota
fees since 2004.
In 2004 distribute to:
* VINATAS: 1,587
bil. VND
* Vinatex: 1,9 bil.
VND
Reach 3,8 %
of
requirement.
6 Incentive to export to USA
market.
Start to implement in
the end of 2001,
Vinatex got 9,179
billion VND
4.4.3 Opportunities and challenges of garment companies of Vietnam
Opportunities
1.
Moving production trend from developed countries to developing
countries opening a new opportunities for garment companies in
Vietnam. This trend will lead to transfer of equipments, technology, and
management and high qualify labors from developed country to
developing countries, including Vietnam.
2.
Globalization brings to Vietnam many new opportunities, including
textile and garment. Textile and garment companies in Vietnam will
have chance to expand their markets in USA and other markets.
3.
Domestic market with a population of 84 million persons and increasing
GDP per capita will be enough big and profitable market to serve.
Challenges
1.
Strong competitiveness from China, India, Bangladesh, Srilanca and
Indonesia.
2.
The possibility of being sued for dumping in the U.S. because Vietnam
is perceived as an important long-term supplier to the U.S.
3.
Since Vietnam is not yet a member of the World Trade Organization
(WTO), it will not competitive compare with other competitors.
4.
Implementation of government s incentive and support policies is facing
many problems.
5.
Increasing of non-tariff barriers such as: Safety and industry hygiene,
social responsibilities.
4.4.4 The policies that Vietnamese government should implement to help
garment companies in Vietnam improving their value chain management.
Some of experts said that Vietnam should pay much more attention to
improving management skills in product development, upgrading production and
distribution channel, training adequate human resources to carry out product des
ign and
development process, and, not least important, expanding to highly-demanded dome
stic
market.
Relating to development of upstream industries through actively investing in
those, many scholars keep their skeptical views on this strategy due to likely d
ecline in
the demand for domestic textiles if import duties are reduced in 2006. By that t
ime, the
upstream industry may face with difficulties. If the country insists on developi
ng
upstream industry, it should limit to areas leading to enhancing quality and cus
tomer
confidence. However, enhancing competitiveness of upstream industry through
selective investment is not enough for increasing the content ratio. Opportunity
for and
facilitators of production linkage should also be established and enhanced.
The issue of what are the roles of the government in the development process of
this industry is also debated. Interviewees thought that the government and VINA
TEX
should play as the facilitators for the development of the industry though provi
sion of
information, development of physical infrastructure, and institutional support.
The role
of VINATEX should be realigned to become an agency providing services such as
training, designing, testing and research to both SOEs and non-state enterprises
.
4.5 Second data analysis
Due to the limitation of primary data about garment companies in Vietnam, to
help readers have more clear picture about garment enterprises in Vietnam in spe
cific
and Textile and Garment industry of Vietnam in general, the researcher also look
for
good source of secondary data and try to analyze them. This part also considered
as one
of bases for the recommendation part of the next chapter.
4.5.1 Other classification of Garment companies in Vietnam
4.4.1.1 Location of both textile and garment companies in Vietnam
Location of textile and garment
companies in Vietnam

The North
The middle
The south
The North
20.8%
The south
74.0%
The
middle
5.3%
Figure 4-7: Location of textile and garment companies in Vietnam
Source: Economic and technical textile and garment institute, Vinatex, 2005
Chart 4-7 shows that, most of textile and garment companies located in the North
of Vietnam (74.0%) followed by The North with 20.8% and finally the Middle with
only
5.3. There are 405 textile and garment enterprise in the North (22.3%). Those en
terprises
located mainly in Hanoi (157 enterprise, 8.0%), 135 enterprises (6.9%) located i
n
provinces near by Hanoi: Bac Ninh, Bac Giang, Ha Tay, Hung Yen, Hai Duong, Hai
Phong, Quang Ninh. Other provinces such as Nam Dinh, Ha Nam, Thai Binh, Ninh Bin
h
have 71 enterprises (1.6%)
There are 103 enterprises (5.3%) in the Middle of Vietnam, located mainly in Da
Nang, Khanh Hoa, Lam Dong, Thua Thien, Quang Tri, Quang Nam, Quang Ngai, Binh
Dinh.
The South has 1.443 enterprises (occupy 72.4% of total) located mainly in Ho
Chi Minh with 1.090 enterprises (55.9%), follows by other provinces near by Ho C
hi
Minh include: Long An, Dong Nai, Binh Duong, Ba Ria Vung Tau with 293
enterprises (15%) and there are 22 enterprise (1.1%) located in Tien River Area
include
Tien Giang Ben Tre, Tra Vinh, Dong Thap, Can Tho province.
4.5.1.2 Textile and Garment companies classified by initial
investment
Textile and garment companies in
Vietnam with initial investment

5 billion
> 5 billion
1-5 billion
16.8%
vnd
40.1%

Figure 4-8: Textile and garment companies in Vietnam with initial investment
Note: $1 = vnd 15,860 (February, 2006)
vnd
18.2%
0.5-1
billion vnd
vnd
24.9%
Figure 4-8 shows that, textile and garment companies which have initial
investment form 1-5 billion vnd are most common in Vietnam with 40.1%, follow by
5
billion vnd (24.9%), more than 5 billion vnd (18.2%) and 0.5-1 billion present 1
6.8%.
4.4.1.3 Garment companies in Vietnam classified by the owners
State own enterprise
Non state own enterprises
FDI enterprises
State own
enterprise
22.6%
FDI
enterprises
Non state
35.4%
own
enterprises
42.0%
Figure 4-9: Owners of garment enterprises in Vietnam
In figure 4-9, of 717 enterprises, 42.0% of Vietnam garment enterprises are non-
state own enterprises. FDI enterprises occupy 35.4% and state own enterprises is
22.6%. Compare with almost 100% state own enterprises in closed economic period
(before 1980), percent of state own enterprise has decreased year by year. And t
o year
2004, the percent of state own is only 22.6 (162 enterprises), while non state o
wn
enterprises occupy 42.0% (301 enterprises) and there are 254 FDI enterprises. Th
is
means that thanks to the open policy, the non state own and FDI are playing more
important roles in the development of the industry.
4.5.1.4 Textile and garment enterprises classified by products
Trade and
service
Fiber
19,3%
4.3%
Textile
17.4%
Garment
64.8%
Accessories
1.6%
Figure 4-10: Products of Textile and garment Enterprises.
Figure 4-10 shows that Garment enterprises occupy 64.8% of whole industry,
trade and service occupy 19.3%, follow by textile enterprises 17.4%, fiber 4.3%,
accessories 1.6%.
Table 4-33: Supply of garment companies in Vietnam
Name Units Domestic
production
Import Needs Percent of
Import
1. Fabric Mil.m2 518 1,512 2,130 71%
5. Thread 1000 tons 3.5 1.5 5.0 30%
6. Zipper Mil.m 60 140 200 70%
7. Inter liner Mil. m2 25 40 65 61%
Source: VINATEX and Year book of GSO, 2004
Table 4-33 shows that production of fabric, thread, zipper and inter liner is no
t
enough for the need of garment companies in Vietnam. With fabric, garment
companies need 2,130 million square meters but domestic production is only 518
million so garment companies in Vietnam have to import 1,512 million m2 lead to
percent of import is 71%. With zipper, garment companies need about 200 million
meters, but domestic suppliers can only supply60 so garment companies have to
import 140 million meters (70%). This situation is almost same with inter liner
and
even thread, garment companies have to import 1.5 thousand tons (30%). It shows
that, the material production of domestic textile firm can t fulfill the need of
garment companies in Vietnam. This leads to a deep dependent on the overseas
suppliers of garment companies in Vietnam. The upstream linkage between textile
and garment is quite weak in Vietnam.
4.5.2 Labour status of Vietnam
Table 4-34: Ability level of labor in Vietnamese textile and garment industry
Level of ability Textile (%) Garment (%)
Post graduate 0.08 0.01
Bachelor and college level 7.04 4.00
Intermediate level 4.71 3.50
technician 3.34 3.78
Worker 5/7 18.82 6.30
Unskilled worker 66.01 78.91
intermediate
Bachelor and
level
college level technician
Post 3.63%
4.15%

3.92%
Worker
6.53%
Source: Year books of GSO, 2004
Figure 4-11: Ability level of labor in Vietnamese textile and garment industry
graduate
0.01%
unskilled
labor
81.77%
Table 4-34 shows that the percent of high education and training is very low in
both textile and garment companies. In garment, post graduate occupies only 0.01
%,
bachelor and college level occupy only 4.00%, intermediate level is 3.50%, techn
ician
is 3.78 %, worker 5/7 grade is 6.30% and the last unskilled worker occupy 78.91%
.
In the development strategy of textile and garment industry, which is approved
by Vietnamese government to 2010, Vinatex estimates that textile and garment
companies in Vietnam need about 600 designers, 1,200 marketing and export
promotion officers, 400 textile and dying technicians. But they are not availabl
e in the
labor market.
4.5.3 Production forecast and the domestic demands
Textile and garment output of Vietnam
0
1000
2000
3000
4000
5000
Fiber (thounsand ton) Fabric (mil. M) Garment ( mil. Products)
Fiber (thounsand ton) 67.54 69.08 73.73 129.9 162.4 226.8 234.6 239 260 350 500
600
Fabric (mil. M) 299 315 317 356.4 410.1 469.6 496.4 518.2 600 1000 1500 2000
Garment ( mil. Products) 327 304 335 424 451 602 875 926 1100 1800 2850 4000
1997 1998 1999 2000 2001 2002 2003 2004 2005* 2010* 2015* 2020*
Figure 4-12: Textile and Garment out put of Vietnam
Source: Economic and technical textile and garment institute, Vinatex 2004
Note: * estimated number.
Figure 4-11 shows that, the out put of fiber, fabric and garment is increasing.
However, due to the shape of the chart and the data in the attached table, garme
nt has
increasing fastest, fiber and fabric out put has increasing slower. In 2005, the
out put of
fiber is 260 thousand tons but in 2010, the out put of fiber estimated will be 6
00
thousand tons (increase 130%). The out put of fabric in 2005 is 600 million mete
rs, in
2010 estimated will be 2,000 million meters (increase 233%) but the out put of g
arment
will increase from 1,100 million products to 4,000 million products (increase 26
3%).
So with this trend, the local production of material is still not enough for the
needs of
garment companies in Vietnam in next 15 years Unit: $
GDP per capita of Vietnam
0
100
200
300
400
500
600
700
800
900
GDP per capita
GDP per capita 402.1 412.9 440 441.9 554.6 590 630 670 710 750 800
2000 2001 2002 2003 2004 2005* 2006* 2007* 2008* 2009* 2010*
Figure 4-13: GDP per capita of Vietnam
Source: Economic and technical textile and garment institute, Vinatex 2004
Note: * estimated number.
Figure 4-12 shows GDP per capita of Vietnam to 2010. In 2000 the GDP per capita
of Vietnam was $402.1, in 2005 it is 590 and in 2010 it estimated will be $800.
This is
good trend for consumption of textile and garment. The domestic market of more t
han
82 million people and of 100 million people in 2010 has big potential. According
to
estimates, GDP per capita in Vietnam will be USD 600 - 800 up to 2005 and USD 90
0 -
1,200 up to 2010. This would take demand for consumer goods to USD 250 - 350 per
capita in 2005 and USD 400 - 450 in 2010, of which 6-8% is the average proportio
n of
expenditure on textiles and garments, such average will be exceeded by far in th
e big
cities (Ministry of Trade, 2004).
CHAPTER 5
CONCLUSIONS, DISCUSSIONS AND RECOMMENDATIONS
This chapter includes three sections.
Section 1: The results and conclusions of the study.
Section 2: Discussions
Section 3: Recommendations
5.1 Conclusions
The study used both of the primary data and the secondary data to identify the
value chain management of garment companies in Vietnam. The percentage and
descriptive statistics were used for analyze the primary data. The secondary dat
a is
processed by comparing through time series and analyzing.
In order to explore the value chain of garment companies in Vietnam, the
questionnaire were sent to 317 garment companies. The 173 qualified returned
questionnaires show the executives opinions on the value chain of garment compani
es
in Vietnam in 9 activities. The data collected through questionnaires were analy
zed by
percentage and descriptive statistics.
By percentage analysis, the demographics of garment companies are revealed
and by descriptive analysis the effectiveness of every activity was evaluated in
terms of
mean and standard deviation. Activities were rated from not at all effective (wo
rst)
level to very effective (best) level. In conclusion of 173 respondents, there ar
e 7
activities that are managed moderately effective. They are inbound logistics (me
an =
3.25), outbound logistics (mean = 3.26), services (mean = 2.86), technology
development (mean = 2.84), human resource management (mean = 2.77), infrastructu
re
(mean = 3.21) and procurement (mean = 3.00). Two activities that are managed not
too
effectively are: marketing and sales. Only one activity is managed effectively i
s
production (mean = 3.43).
To recommend for government policy makers and firms, the researcher asked
respondents and experts to rate the importance of primary activities and support
activities on the value chain management of garment companies in Vietnam. The
technique t-tests analysis is utilized to compare the perceptions of respondents
from
garment companies and garment experts on the importance of activities in the val
ue
chain of garment companies in Vietnam.
Inbound logistics is considered as an important activity in the value chain by
respondents (mean = 3.65, S.D = 0.71) and experts (mean = 3.57, S.D = 0.53), the
mean
difference is 0.08. Both respondents and experts considered operation playing ve
ry
important role in the value chain. Respondents rated it with mean = 4.73 higher
comparing with mean = 4.43 of experts. Outbound logistics is considered as an
important activity in the value chain by respondents (mean = 3.68, S.D=0.76) and
experts (mean=3.57, S.D=0.79), the mean difference is 0.09. Both respondents and
experts thought that marketing and sales playing very important role in the valu
e chain
of garment companies with mean = 4.53 and 4.86. There is a significant differenc
e
between rate score of respondents and experts about importance of service in the
value
chain. Respondents considered service as a moderately important activities (mean
=
2.95, S.D=0.83) in the value chain of garment companies but experts thought that
it is
an important activity (mean = 4.14, S.D = 0.69). With support activities, both
respondents and experts considered technology development playing a very importa
nt
role in the value chain of garment companies in Vietnam. Mean score of responden
ts is
4.34 and mean score of experts is 4.43. Infrastructure is considered as an impor
tant
activity in the value chain of garment companies by both respondents (mean=3.98,
S.D=0.75) and experts (mean=3.86, S.D =0.90). There is a significant difference
in
mean score of HRM between respondents and experts. Respondents considered HRM is
an important activity with mean=4.01, S.D = 0.68 while experts considered HRM is
a
very important activity in the value chain of garment companies. The mean differ
ence
is 0.56. Even both respondents and experts considered procurement playing an
important role in the value chain of garment companies but there is a significan
t
difference between the mean score of respondents (mean = 3.54, S.D = 0.76) and
experts (mean = 4.14, S.D=0.69), the mean difference is 0.6.
Another purpose of the study is to recommend the appropriate policy to improve
the value chain of garment companies in Vietnam. In order to improve the value c
hain
management of garment companies in Vietnam, recommendations are needed for both
government s side and firms side. That one will be delivered in next part of this
chapter.
5.2 Discussions
This study found many interesting finding about the value chain management of
garment companies in Vietnam. This investigation was conducted by questionnaire
and
interview. The strength of this study can be considered not only primary but als
o
secondary data. In this part the results and findings from the study are discuss
ed as
following
5.2.1 Inbound logistics
TNT N.V., the holding company of the two brands TNT and Royal TPG Post, a
global leader in logistics, mail and express defines Inbound logistics is the
management of a complex supply chain from suppliers to manufacturers . It is the
management of flow of materials from suppliers to raw material inventory to
production to working process inventory and finally in finished goods. The resul
t of
this study actually come form the primary data. By using t-test, result shows th
at both
respondents and experts considered inbound logistics playing an important role i
n the
value chain of garment companies in Vietnam. However, this variance is rated a l
ittle
bit more important for respondents than experts. In experts perception, some acti
vities
of inbound logistics can be outsourcing. By rating the efficiency of inbound log
istics
with some activities management of inbound logistic such as receiving fabric, st
oring,
handling, inventory control and transportation scheduling the respondents show t
hat
inbound logistics are managed moderately efficient with mean = 3.25 (table 4-8).
This
activity may need some improvements and if technology and HRM of the companies
are improved it will lead to improvement of this activity.
5.2.2 Operations
A production system uses operations resources to transform input into some
desired output (Daniels, John D and L.H Redebangh, 1998). Operation management
may be defined as the design, operation and improvement of the production system
s
that create the firm s primary products or services. So operation is considered ma
naging
effectively when it has a good design and operated at high productivity and save
of
inputs. Table 4-22 shows that, operation is rated as very important in the value
chain of
garment companies in Vietnam for both respondents and experts. However, operatio
n is
evaluated more important for respondents from garment companies than experts (me
an
of respondents is X = 4.73, SD= 0.45 and mean of experts is X =4.43; SD = 0.53).

There is a fact that fashion nowadays changing very fast; the delivery time is
one of the most important factors to get the order. Respondent from garment comp
anies
with a long history of doing CMT orders, still focus on production, while garmen
t
expert more focus on marketing of view. On the other hand, the finding in
questionnaires shows that operation is only manage somewhat between moderately
efficient and efficient with mean = 3.43 (table 4-8) by rating efficient level o
f
production scheduling, pattern making, spreading and cutting, garment assembling
,
finishing and packaging and machine maintenance. So it needs some manages to be
improved.
Before studying MBA, the researcher had spent some months in India and
Indonesia to do research about Roles of Marketing and Merchandising in garment
companies . The researcher did internships in many garment companies there and saw
that the garment companies in Vietnam have better operation systems. However,
productivity in garment companies in Vietnam is not high due to some reason such
as:
slow material flow. In marketing point of view, if HRM and technology of garment
companies in Vietnam is improved, the operation management of garment companies
in
Vietnam will be more effective.
5.2.3 Outbound logistics
Outbound logistics can be seen as a part of supply chain concerned with the
management of flow of finished goods to consumers (Chandra, 1997). It can be see
n
that both respondents and experts considered outbound logistics playing an impor
tant
role in the value chain of garment companies in Vietnam. However, this variance
is
rated a little bit more important for respondents than experts ( X = 3.68, SD= 0
.76
compares with X = 3.57; SD = 0.79). The mean difference is 0.1107 (table 4-19).
The differences between finding of questionnaire and experts interview may
have the same reason as the researcher discussed in part 5.2.1.
By analyzing descriptive of questionnaires, outbound logistics is revealed as a
moderately effective activity with mean = 3.26.
5.2.4 Marketing and sales
Director of Business Partners, South Africa s leading specialized investment
group for small and medium enterprises said that Marketing your business is one o
f
the most important things you can do to ensure its success (2001) and there is no
argument about this. Table 4-24 of this study shows that, marketing and sales is
rated as
most important activity in the value chain of garment companies in Vietnam for b
oth
respondents and experts. However, marketing is evaluated more important for expe
rts
than respondents from companies (mean of respondents is X = 4.53, SD= 0.72 and
mean of experts is X =4.86; SD = 0.38) (table 4-23), the mean difference is 0.33
(table
4-19). As mentioned above, in new trend of business, experts considered marketin
g is
very important in the value chain of garment companies in Vietnam.
Due to lack of experience, marketing and sales are managed not very effective in
their companies, marketing had been rated at mean = 2.12 and sales had been rate
d at
mean = 2.19. Number shows that nowadays, garment companies in Vietnam start to
evaluate marketing and sales as more important functions. Due to some changing
conditions, CMT orders are no longer easy to get. Garment companies in Vietnam h
ave
to start thinking to move toward FOB orders (Till Freyer, 2004). This trend requ
ires
garment companies in Vietnam more efforts to improve their marketing and sales s
kills.
Experts all agreed that this activity is quite weak in the value chain of garmen
t
companies in Vietnam and need to be improved.
5.2.5 Services
Table 4-25 shows that, respondents rated service as moderately important activit
y
( X = 2.95, SD= 0.83) but experts rated it as an important activity ( X = 4.14;
SD =
0.69) (table 4-25), the mean difference is 1.19. There are facts that garment co
mpanies
in Vietnam due to long history of doing CMT order still focus on production. Eve
n they
start to consider marketing as an important function but they still are weak at
communication with buyer. When buyers come to their factories they still don t kno
w
how to make them feel good, and offer buyer efficient services (Till Freyer, 200
4). In
their value chain this activities is managed moderately effective with mean = 2.
86, in
details customer support is not managed well and complain handling is managed
moderately effective. This finding shows that garment companies not yet have a c
lear
business view in the new conditions. They may think that services are not very
important with manufacturers like them and garment products are something that n
o
needs to have service after sales. They may not see the fact that support custom
er
service can make their companies are different compare with their competitors.
This issue was discussed with experts and they suggest that the garment
companies in Vietnam, especially state own and non state own enterprises should
consider this activity is more important and need to be improved because nowadays
,
the customers will walked in to your factory only they have good image about you
r
service, both before and after sales (Till Freyer, 2004).
5.2.6 Infrastructure
Both respondents and experts considered infrastructure playing an important role
in the value chain of garment companies in Vietnam (mean of respondents is X = 3
.98,
SD= 0.75 and mean of garment experts is X = 3.86; SD = 0.90). However, this vari
ance
is rated a little bit more important for respondents than experts. The mean diff
erence is
0.1197 (table 4-26).
By rating the effective level of general management, planning management,
finance management, quality management, all of these activities are somewhat
effective. In conclusion, infrastructure is managed somewhat effective with mean
=
3.21. This activity needs some more efforts to be improved because nowadays, the
top
management of garment companies is still weak and trapped in a bulk and ineffect
ive
administration system (Duc Vuong, 2001).
5.2.7 Human Resources Management
It can be seen from table 4-28 that respondents considered HRM playing an
important role in the value chain of garment companies in Vietnam ( X = 4.01, SD
=
0.68) but experts considered HRM is one of the most important activities in the
value
chain management of garment companies in Vietnam ( X = 4.57; SD = 0.53). The mea
n
difference is 0.5599 (table 4-26)
The findings show that it is managed moderately effective with mean = 2.77
(table 4-15). In fact, workers in Vietnam are considered work hard and skillful
if they
are trained well. Human resource management includes many activities such as
recruitment, training, retention and compensation etc,. With recruiting, garment
companies in Vietnam still be affected by traditional ways such as choosing staf
f base
on the relationship of that one to top managers. Another fact, there are lack of
vocational schools in Vietnam and good students don t like to study in vocational
schools. Most of workers and staffs work for garment companies in Vietnam are no
t
trained well before working (Christiane, 2005). Moreover, most of garment compan
ies
in Vietnam pay workers by pieces not by working hours, but there is a waste of t
ime in
material flows so productivity in garment companies in Vietnam is still low.
5.2.8 Technology development
Both respondents and experts considered Technology Development playing one
of the most important role in the value chain of garment companies in Vietnam (m
ean
of respondents is X = 4.34, SD= 0.77 and mean of garment experts is X = 4.43; SD
=
0.53). However, this variance is rated a little bit more important for experts t
han
respondents (the mean difference is 0.0857).
By rating the effective level of activities, in conclusion, technology developme
nt
is managed somewhat efficient (mean = 2.84). In fact if compare with other compe
titors
such as India and Indonesia, technology of garment industry in Vietnam is consid
ered
quite modern. Most of garment companies in Vietnam are using modern sewing
machine system. With plenty of labor and with a labor intensive industry like ga
rment
if the technology development is managed well, the productivity in garment compa
nies
in Vietnam would be higher (Arindam Das, 2001). However the finding shows that
experts are not very satisfy with technology development of garment companies in
Vietnam.
5.2.9 Procurement
It can be seen that both respondents and experts considered procurement playing
an important role in the value chain of garment companies in Vietnam. However, t
his
variance is rated much more important for experts than respondents (mean of
respondent is X = 3.54, SD= 0.76 and mean of garment experts is X = 4.14; SD =
0.69). The mean difference is 0.5995 (table 4-26)
Procurement is built up by many activities. By rating the effective level of tho
se
activities, procurement of stationary, procurement of services, are managed mode
rately
effective. Procurement of machine is considered efficient with mean = 3.49 and
procurement of material is managed not too effective with mean = 2.25 (table 4-1
2). In
conclusion, procurement is managed moderately effective in garment companies in
Vietnam. In experts perception, in procurement, procurement of material is very
important and there is a fact that one of weak points of garment companies in Vi
etnam
is input. Most of fabric and accessories are imported but most of garment compan
ies in
Vietnam are weak of buying materials (Till Freyer, 2003).
5.3 Recommendations
Vietnam has made a remarkable transition from a centrally planned economy to
opened market in the direction of a mixed market economy increasingly integrated
into
the world economy. A key element of this transition understands the way internat
ional
markets for goods, services and investment operate. This issue is of prime impor
tance
in the textile and, especially, garment industry. Garment is a consumer-oriented
industry employing standard, 'mature' technology. Significant capital investment
is not
required; what is highly important is knowledge of international marketing chann
els,
attention to quality control, management of stocks, and a capacity to deliver re
liable
supply.
The mission formed the view producers in the industry tend to adhere to a
'production/engineering approach' rather than a 'market/efficiency approach'. Bo
th
approaches of course are needed, but in such labour-intensive consumer-oriented
industries, the latter is arguably more important. The overwhelming impression o
f the
mission is that Vietnam's industry is almost entirely passive in its marketing a
pproach firms
are adept at producing products efficiently and reliably for buyers, but the
initiative to seek out new buyers, understand and engage international marketing
networks, and experiment with new designs and products is rarely taken. There is
concern that firms are producing low value added products, and that they are to
some
extent at the mercy of international buyers, particularly at present following t
he sharp
devaluations in some competitor countries. As long as this passive approach pers
ists,
Vietnam's firms are likely to be locked into a low value added production cycle,
with
little scope to upgrade.
There is no simple solution to overcome this problem, but the key general point
to emphasize is that the country will need to strengthen its international conne
ctions in
a variety of ways.
First, 'country reputation' is important. As Wells (1993) and others have
demonstrated, East Asian business is characterized by great mobility of both inv
estors
and buying agents. Vietnam is in the early stages of creating such a reputation,
but its
reputation is still very much that of a late-comer, and much needs to be done to
cement
its place as an important 'fourth tier' economy in the long sweep of East Asian
development.
Secondly, it needs to be emphasized that the establishment and strengthening of
international linkages is not a large-scale, one-off process. The channels consi
st of
many, often small-scale, commercial agents, involving repeat transactions. The
importance of Hong Kong as a key source of marketing, financial and technical
expertise was emphasized above. It is instructive also to recognize that these
international linkages are often informal and small-scale.
Third, it makes sense for a country to exploit whatever international connection
s
it possesses to facilitate commercial success. Vietnam's international exposure
is still
quite limited, but it is not entirely absent. It has historical links to Eastern
Europe and
the former USSR (Union of Soviet Socialist Republics). As these economies recove
r
from the traumas of transition, they could be become significant markets for
Vietnamese firms.
Beside that, there are many works to do with the government as well as the
firms to maintain and improve the value chain of garment companies in Vietnam.
5.3.1 Recommendations for the government
For firms to be internationally competitive, they need not only supportive
macroeconomic but they also need a conducive microeconomic environment. Wherever
there are obstacles to efficient business practice, which prevent firms from ach
ieving
best-practice standards of management and production, commercial opportunities w
ill
be missed, production will be less than it otherwise could have been, internatio
nal
competitiveness will be harmed, and Vietnam's capacity to deliver productive
employment will be diminished.
Governments can assist the process of shifting to best-practice, higher value
added activities by overcoming problems of market failures in the provision of k
ey
inputs. These initiatives need to be linked to - and indeed will only work if
accompanied by - enterprise and institutional reforms. The issue is not so much
the
government itself undertaking a major modernization and re-equipment of the indu
stry,
but rather in creating a commercial environment in which firms have the incentiv
e and
capacity to undertake these themselves. In such an environment, the government c
ould
make a great contribution through facilitating the establishment of industry-dri
ven
research institutes which quickly disseminate the latest information on global t
rends in
markets, fashion, and design, together with more technical production know-how.
In order to maintain and improve the value chain of garment companies in
Vietnam, Vietnamese government should have proper policy for development of the
industry. Some recommends are as following:
1. Create a level playing field for enterprises of different sectors by graduall
y
removing indirect subsidies for state-owned enterprises in terms of access to la
nd,
credit and quota allocation and by improving the accounting and auditing system.
Speed up equalization of the state-owned enterprises and harmonies the State's
investment with the policy of reducing the State's direct participation.
2. Design a proper strategy for development of the textile and garment industry.
Key target should be the expansion of the garment sector by strengthening backwa
rd
integration.
3. Import protection for the industry should take the form of lower tariffs and
be
consistent with Vietnam's obligations under CEPT, AFTA, APEC and WTO.
4. Through budget funded or foreign aid projects, help enterprises in technical
assistance to implement agreements, such as SA 8000, trademark registration, res
earch
and development, and training.
5. Establish concentrated trade centers in potential market in order to support
enterprises in marketing, exhibition and show, trademark advertisement, organize
and
provide funding to regular study tours, trade fair abroad for enterprises.
6. Support in human resource training and legal aid:
The government needs to have a policy for training of human resource
for the textile and garment industry, using the budget or foreign aid.
Establish representative office abroad to provide legal counsel to local
enterprises in doing business, investment, or to protect their trademark,
thus to protect the interests of Vietnamese enterprises abroad.
7. The government should help textile and garment related services, such as
industrial software, equipment and parts supply, technical services, trade promo
tion,
trade mark development, franchise, design, training, quality control, management
etc.
to get the foreign investment.
8. The government and VINATEX should play as the facilitators for the
development of the industry though provision of information, development of phys
ical
infrastructure, and institutional support. The role of VINATEX should be realign
ed to
become an agency providing services such as training, designing, testing and res
earch
to both SOEs and non-state enterprises.
9. If import duties are reduced in 2006 it will be likely decline in the demand
for
domestic textiles. By that time, the upstream industry may face with difficultie
s. If the
government insists on developing upstream industry, the government should have
policies to enhance competitiveness of upstream industry through selective inves
tment
and opportunity for and facilitators of production linkage should also be establ
ished and
enhanced.
5.3.2 Recommendations for the firms
At the moment, to focus on shifting from CMT production modality to FOB
one, Garment companies in Vietnam should pay much more attention to improving
management skills in product development, distribution channel, training adequat
e
human resources to carry out product design and development process, and, not le
ast
important, expanding to highly-demanded domestic market (Till Freyer, Christinan
e,
2005).
In order to improve the value chain management, garment companies in
Vietnam should look back their value chain management. They should know which
activities in their value chain are strategic and then focus on those activities
, trace cost
to those activities efficiently and use cost information to manage their activit
ies. As
finding in section 2 of chapter 4 and discussion in section 2 of this chapter: o
peration,
marketing and sales, HRM and technology development should be considered as key
activities of garment companies in Vietnam and should be improved. Following
strategies can be applied:
1. More flexibility, dynamism, cooperation and clear policies are needed. Both,
the Garment and Textile Industry (production of fabric- dying finishing) have to
build
up close relationship to design a strategy for further development and to establ
ish a
strong Textile-Garment Association as a channel of communication and pool for
information for international customers as the result from the research shows th
at the
upstream linkage between garment enterprises and textile firms is weak.
2. Following aspects of production are related and must be counted and
improved together:
Accuracy on cutting
A clear concept and divide the job between making of ' 'Spare parts" and
"Assembly Parts into a garment".
Provide a suitable handling environment for a particular sewing
operation
Reduce the time of material flow.
3. Invest in marketing
Garment companies in Vietnam should more focus on marketing for example:
Having a close look and constant research to overseas/global markets and custome
rs
and getting started to use all kind of sources of information frequently, for ex
ample
visit of international Textile fairs. Brand name, fashion cycle, and labeling ar
e
mentioned as important factors to be successful in garment business in Chapter 2
(Gini
Stephens, 2001). Today s general target is to transform a local label into a globa
l brand
name. This requires even bigger advertising budgets and efforts (Till Freyer, 20
04). A
yearly promotion budget so should be established and advertising channels decide
d base
on fashion cycle, objectives and budget of firm because they shall raise the con
sumers
awareness of a brand and wish to own a garment with this label.
Costing a garment is very important as Gini Stephens mentioned in his book Fashio
n
from concept to consumer (2001). A buyer so will get very impatient of he cannot
get a
price immediately for a style as displayed so marking it on samples and show to
customer
can help to overcome this problem.
4. Improve service by improving office image and sample room
The appearance of the entire office, workplace and personality leave a lasting
impression on customers. They are very much part of a company image. Most buyers
are
likely to come from Europe or the USA and are used to modern surroundings. Garme
nt
companies in Vietnam so should welcome them in a similar atmosphere and make the
m
feel at home . Normally, the visitor looks around as soon as he enters the office.
He
makes a quick inspection of working desks, samples on tables, shelves (and sometim
es
floor), whether it is orderly or messy and thinks this is an efficient (or ineffi
cient)
operation . The result will influence his decision to make the order or not (Till
Freyer,
2004). So a neglected, dirty building needing repairs and painting puts off a vi
sitor
immediately. It is worthwhile to invest in the reception and give it a modern lo
ok.
The sample room is a very vital facility in garment exports. It allows a visitin
g
buyer to choose a fabric for a desired style (Gini Stephens, 2001). So garment c
ompanies
in Vietnam should keep shown samples up-to-date and keep the room clean and in g
ood
order. Each hanger should describe the quality, width, supply source (coded), pr
ice.
Normally buyer comes from a modern, affluent country with excellent facilities i
ncluding
shops. So it is necessary to make it easy for him to imagine what products will
look like
in his retail outlets. The ideal showroom is set up like a retail outlet. It sho
uld provide
space for both hanging and folded garments. Up-to-date styles, fabrics and color
s should
be present to prove that the company is following fashion trends. Full informati
on
therefore needs to be shown on hangtags on each style.
5. Improve Human resource
Garment companies in Vietnam should invest in training of personnel (in terms
of marketing, merchandising, design, production management and selling) because
the
study (primary data and secondary data) shows that human resource of garment
companies in Vietnam is weak. Human resource management should deal with all
human aspects of an organization in accordance with Management s directives and
Government rules with wide ranging responsibilities. Following activities should
be
managed better: Employment and sometimes dismissal of staff and workers,
calculation of wages / salaries / allowances and keeping payment slips of each p
erson in
cooperation with Finance Dept, analyze job performance and propose promotions of
individuals in consultation with departments concerned, staff records - working
hours
attendance discipline work performance.
Minimum wage payments, overtime, minimum age for employees and others
including: government rules and labour laws, welfare of employees, medical care,
social
accountability, working conditions, safety, environment, social responsibilities
etc. to
pass Factory Audits or SA 8000.
6. Technology and Development:
Vietnam is a labour intensive and capital scarce country, enterprises should
invest in appropriate technology. Even plentiful labour resources cannot substit
ute
state-of-the-art machinery to increase added value and backward integration. The
industry needs a strategy how to upgrade technological standards and use new
technology more effectively.
Fashion is the expression and preference of a specific target group s approach
towards life (Gini Stephens, 2001). So garment companies in Vietnam should inves
t to
have a design team, which have the task of accurately forecasting and recognizin
g future
trends and translating them into wearable fashion garments. Design teams obtain
their
inspirations from international Trend Shows , magazines, talking to sales staff in
shop
and closely follow what their target group wears in the street, office and at hom
e. They
then should produce sketches and propose fabrics and colors of what will hopeful
ly
be fashion and in demand next.
7. Finally, Garment companies in Vietnam should try to manage the value chain
via intranets, extranets and proprietary networks to reduce time of information
flows.
As Till Freyer in his research (2005) suggested: computer software are very much
part
of every days work. Special programs, developed for the specific tasks of each
department support and speed up the work process and control of deadlines. Most
work
procedures and control systems incl. communication (e-mail) can be supported by
computer programs. Information Department or Administration Department or
Technical Department can be responsible for the networks. The managers so can us
e
these networks to manage the information flow. In Thoi Bao Kinh Te (September 20
05)
the basic price for one IDSL internet line is about 300.000vnd (estimated is $20
), this is
considered very cheap for an internet line if the company use the line efficient
ly.
5.3.3 Limitations of the study
Even though the study shows the general picture of the value chain management
of garment companies in Vietnam and it shows a number of significant findings bu
t due
to time constraints it also has some limitations.
Firstly, the primary data from the study was just analyzed based on data of 177
garment companies in Vietnam with more than 50% of them are in the North of
Vietnam (Hanoi). But the secondary data shows that 74.0% of textile and garment
companies of Vietnam are located in The South, only 20.8 located in The North (F
igure
4-7, page 110) so the result may be not very reliable. Furthermore, the picture
about the
value chain and the margin of garment companies in Vietnam will be clearer if th
e
upstream linkage between textile firm and garment firm is analyzed so questionna
ires
with textile firms in Vietnam also need to be conducted.
Secondly, the topic and concepts of this research are almost new in Vietnam.
The researcher had to try her best to explain about these concepts. To be afraid
that the
questionnaire is too long for respondents to answer, especially with busy top ma
nagers,
company profile in questionnaire was limited.
Finally, even the comparisons between the value chain management of garment
companies in Vietnam and other competitors in foreign countries are mentioned in
the
notes of questionnaire but it may not easy to compare. The respondents also may
not
have enough information about competitors to compare and afraid that the image o
f
company would be affected, the rating score of respondents from garment companie
s,
especially for production activity may not very reliable.
5.3.4 Suggestions for further studies
This study provides a lot of facts and findings about the value chain
management of garment companies in Vietnam. The suggestions for further studies
are
as follows:
Firstly, it is needed to expand the respondents of the primary research into the
whole textile and garment industry in Vietnam. The research about the upstream
linkage between textile and garment firms should be conducted to analyze the who
le
value chain. Thanks to this the readers will have clearer picture about the valu
e chain
management of garment companies in Vietnam, what the garment companies in
Vietnam can and should do to improve their value chain management.
Secondly, next studies should test hypothesis to measure the relations among
activities in the value chain of garment companies and the affects of activities
to the
margin of the value chain by using more advanced technique to analyze the primar
y
data such as: Pearson Correlation, Correlation Coefficient, and effect size.
Thirdly, the next study should show how the total cost can be traced to key or
strategic activities in the value chain of garment companies in Vietnam and how
this
cost information used to manage the strategic value chain activities.
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APPENDIX 1
LETTER FOR INTERVIEW S APPOINTMENT

Date:
To whom it may concern:
My name is Hoang Thi Bao Thoa, a lecture of Garment Technology and Fashion
Design Department, Hung Yen University of Technical Education. I m studying MBA in
international business at University of Thai Chamber of Commerce, Bangkok, Thail
and. I
am conducting a research on the topic entitled Value chain management of garment
companies in Vietnam to fulfill my MBA degree. The main purpose of my research is
to
describe the value chain of garment companies in Vietnam and how effectively are
activities in the value chain managed. I would be very grateful if I could have
a depth
interview with you about your opinion and work experiences in order to complete
the
research process. I will give you a call to discuss with you about appointment.
I promise
that your information will be treated confidentially and will only be used for a
cademic
purpose.
My contact number is 0912808119; email address: baothoasp1@gmail.com
Sincerely yours,
Hoang Thi Bao Thoa
MBA, Master of Business Administration
University of Thai Chamber of Commerce, Bangkok, Thailand
APPENDIX 2
TOPICS FOR FACE TO FACE INTERVIEWS
Topic title: Value chain management of garment companies in Vietnam
Profile of interviewees:
Name of interviewee: .
Position: .
Organization: .
Contents of the interview:
Introduce and explain the purpose of the interview.
Explain about value chain model and value chain management.
Interview
3.1 How do you evaluate the importance of primary activities and support activit
ies in
the value chain of garment companies in Vietnam, explain why?
No. Activities in the value chain
Least important .. Most important
1 2 3 4 5
1. Inbound logistics
2. Operations
3. Outbound logistics
4. Marketing
5 Sales
6. Service
7. Infrastructure
8. Human Resource Management
9. Technology Development
10. Procurement
3.2 What are strengths and weaknesses of garment companies in Vietnam?
3.3 Policy regime for garment trade in Vietnam.
3.4 Opportunities and challenges of garment companies after quota lifted.
3.5 The policies that Vietnamese government should implement to help garment
companies in Vietnam improving their value chain.
APPENDIX 3
LETTER FOR QUESTIONNAIRE SURVEY

Date:
To whom it may concern:
My name is Hoang Thi Bao Thoa; I m a lecture of Garment Technology and
Fashion Design Department, Hung Yen University of Technical Education. I m studyin
g
MBA in international business at University of Thai Chamber of Commerce, Bangkok
,
Thailand. I am conducting a research on the topic entitled Value chain management
of
garment companies in Vietnam to fulfill my MBA degree. The main purpose of my
research is to describe the value chain of garment companies in Vietnam and how
effectively are activities in the value chain managed. I would be very grateful
if you fill
in the questionnaire in order to complete the research process. There will be no
right or
wrong for the answers as they depend on each applicant s opinion and experience. Y
our
responses will be treated confidentially and this will only be used for academic
purpose.
Please answer all the questions and return it back as soon as possible. If you h
ave
any question please feel free to contact me at 0912808119 or email me at:
baothoasp1@gmail.com
Thank you for your participation in this questionnaire.
Sincerely yours,
Hoang Thi Bao Thoa
MBA, Master of Business Administration
University of Thai Chamber of Commerce, Bangkok, Thailand
APPENDIX 4
Code: .
QUESTIONNAIRES
Research title The value chain management of garment companies in Vietnam
Thank you very much for spending your time and effort to fill this form.
The questionnaire is divided into 3 parts:
(I)
Company profile
(II)
Primary activities management
(III)
Support activities management.
The value chain management means managing integrated information about
product flow from suppliers to end users to reduce defects and inventories, spee
d time
to market and improve customer satisfaction.
Part I: Company profile
1. Company s name: .
2.
Your position:
[ ] Director
[ ] Vice Director
[ ] Import export manager
[ ] Marketing manager
[ ] Production manager
3.
Number of year that the company operate in garment trade field (check one)
[ ]< 5 years [ ]5 10years [ ]>10 years
4.
What type of your company?
[ ] State-owned enterprise
[ ] Limited liability company
[ ] Joint stock company
[ ] Private company
[ ] FDI
5.
Where your company locates?
[ ] South of Vietnam [ ] North of VN
[ ] Central region of VN
6.
What was the main type of your orders in the year 2005?
[ ] FOB: 0 - 25% (CMT: 75 - 100%)
[ ] FOB: 25 50% (CMT: 50 - 75%)
[ ] FOB: 50 75% (CMT: 25 50%)
[ ] FOB: 75 100% (CMT: 0 25%)
7. What is your major market in this year?
[ ] Local market [ ] Oversea markets
The value chain includes 5 primary activities (Inbound logistics, operations,
outbound logistics, marketing and sales, service) and 4 support activities (Firm
infrastructure, human resource management, technology development and
procurement).
Inbound logistics: receiving, storing, handling, inventory control,
transportation scheduling of fabric and accessory
Operations: cutting, making, trimming, packaging, equipment maintenance,
and testing
Outbound logistics: warehousing, order fulfillment, transportation,
distribution management to bring products to customers
Marketing: channel selection, advertising, promotion, pricing
Sales: Selling, retail management, wholesale management
Service: customer support, complain handling
Infrastructure: general management, planning management, legal, finance,
accounting, public affairs, quality management, etc,.
Human Resource Management: recruiting, development (education),
retention and compensation of employees and managers
Technology Development: Research and Development, Process automation,
design, and redesign
Procurement: Procurement of raw materials, servicing, spare parts, building,
machine, etc,.
8. How do you evaluate the importance of following activities in your company s va
lue
chain?
No. Activities of value chain
Lest important .. Most important
1 2 3 4 5
1. Inbound logistics
2. Operations
3. Outbound logistics
4. Sales and marketing
5. Service
6. Infrastructure
7. Human Resource Management
8. Technology Development
9. Procurement
From question 9 to question 18, you can skip activities that not exit in your
company. In 5 point rating questions you can compare your company s performance
with your competitors if it is necessary.
Part II: Primary activities
9. How are inbound logistics activities managed in your company?
No. Activities
Not at all effective .. Very effective
1 2 3 4 5
1. Receiving fabric and accessory
2. Storing
3. Handling system
4. Inventory control
5. Transportation scheduling
6. Inbound logistics
10. What do you think about your production management?
No. Activities
Not at all effective .. Very effective
1 2 3 4 5
1. Production scheduling
2. Pattern making
3. Spreading and cutting
4. Garment assembly
5. Finishing and packaging
6. Machine maintenance
7. Production
11. How are outbound logistics activities done in your company in 2005?
No. Activities
Not at all effective .. Very effective
1 2 3 4 5
1. Warehousing
2. Order fulfillment
3. Transportation
4. Outbound logistics
12. What do you think about marketing management strategy of your company?
No. Activities
Not at all effective.. Very effective
1 2 3 4 5
1. Product management
2. Price management
3. Place management
4. Promotion management
5. Marketing mix management
13. How is your sales management?
No. Activities
Not at all effective .. Very efficient
1 2 3 4 5
1. Retail management
2. Whole sales management
3 Sales management
14. How is your service managed?
No. Activities
Not effective at all .. Very effective
1 2 3 4 5
1. Customer supports
2. Complain handling
3. Services management
Part III: Support activities
15. How is your technology development management?
No. Activities
Not at all effective .. Very effective
1 2 3 4 5
1. Design and redesign
2. Sewing system development
3. Cutting system management
4. Pressing and ironing systems
5. Other support equipment
6. Technology development
16. How is Human Resource Management in your company?
No. Activities
Not at all effective .. Very effective
1 2 3 4 5
1. Recruiting
2. Worker training
3. Staff training
4. Salary and compensation
5 Human Resource Management
17. How is your Infrastructure managed?
No. Activities
Not effective at all .. Very effective
1 2 3 4 5
1. General management
2. Planning management
3. Finance management
4. Quality management
5. Infrastructure management
18. How is procurement managed in your company?
No Activities
Not at all effective .. Very effective
1 2 3 4 5
1. Procurement of fabric and accessory
2. Procurement of servicing
3. Procurement of machines
4. Procurement of stationary
5. Procurement management
Thank you very much for your help!
MBA student Hoang Thi Bao Thoa
University of Thai Chamber of Commerce
APPENDIX 5
LIST OF 173 GARMENT COMPANIES IN VIETNAM
No. Name of company Product Address
1 1/5 Plastic & Garment Co
Ltd
Director: Doan Hau
T shirt 10/2 Thanh Cong St., Ward 17, Tan Binh
Dist., Ho Chi Minh City
Tel: (08) 8496048
Fax: (08) 8425912
2 19/5 Garment Company
Ministry of Police
Director: Do Xuan Van
Garment and
leather shoes
Hoang Cau St., Thanh xuan Dist., Hanoi
Tel: (04) 854392
Fax: (04) 8541368
3 20c Garment
enterprise(belongs to Nam
Hong Co)
Director: Nguyen Nam
Hong
Garment 20 Phan Dang Luu St., Vinh City, Nghe
An Province
Tel: (038) 849683
Fax: (038) 830959
4 21/10 Garment company
Trade name: 21/10 GARCO
Director: Nguyen Manh
Phong
Jackets; Shirts;
Sportswear;
Trousers; Work
wear
Group 2C, Dong Anh Town, Dong Anh
Dist., Hanoi
Tel: (04) 8833700
Fax: (04) 8832036
5 247 Garment company
Ministry of Defense
Trade name: COMPANY
247
Director: Pham Duy Tan
Jackets; suit;
Vest; Trousers
311 Truong Chinh St., Thanh Xuan Dist.,
Hanoi
Tel: (04) 8531153
Fax: (04) 8530154
Email: no247co@bdvn.vn.net
6 27/7 Binh Luc Garment
Company
Garment Binh Luc Town let, Binh Luc Dist., Ha
Nam Province
Tel: (0351) 860034
7 27/7 Company
Director: Nguyen Hoang
Yen
Export of garment
and embroidery
128-130 Ham Tu St., Ward 1, Dist.5, Ho
Chi Minh City
Tel: (08) 8458692
Fax: (08) 8350879
8 27/7 Garment Company
Ministry of Defense
Director: Vu Xuan Chac
Jackets; Trousers;
Underwear
Phu Tho Town, Phu Tho province
Tel: (0210) 820044
Fax: (0210) 820830
9 27/7 Garment Enterprise
Director: Vu Xuan Hoa
Jackets;
Sportswear
Hung Vuong Wad, Phu tho Town, Phu Tho
province
Tel: (0210) 820044
Fax: (0210) 820364
10 27/7 Quang Ninh Garment
Enterprise
Director: Tran Thi Suu
11 30/4 Garment Export Share
Corporation
Trade name: GEC304
Director: Bui Huu Nghia
12 32 Company
Trade name: ASECO
Director: Mai Duy Hien
13 389 Garment Company
Military Division 3
Director: Nguyen The Hung
14 An Giang Garment Export
Company
15 An Phuoc Garment
Embroidery Co Ltd
Trade name: APCO
Director: Nguyen Thi Dien
16 Bac Giang Garment
Company
Trade name: BAGARCO
Director: Nguyen Huu Phai
17 Bac Giang Import-Export
Company
Trade name: IMEXCO
BAC GIANG
Director: Tran Van Luy
18 Bac Ninh Garment Import-
Export Company
Director: Nguyen Xuan
Sanh
Vests
Jackets; Skiwear;
Sportswear;
Trousers; Polo
shirt; Children
wear
Garment;
Handbag;
Shoes
Jackets; Trousers;
Skiwear
Garment
Garment and
Embroidery
Jackets; coats;
Shirts; Skiwear;
Skirt
Woolen carpets,
garments
Jackets; Shirts;
Trousers;
Sportswear
Cao Xanh St., Ha Long City, Quang Ninh
province
Tel: (04) 825708
321 Ho Van Hue Industry Zone, Ward 9,
Phu Thuan Dist.,
Ho Chi Minh City
Tel: (08) 8443332 8446697
Fax: (08) 8442464
Email: gec304@tlnet.com.vn
170 Quang Trung St., Go Vap Dist., Ho
Chi Minh City
Tel: (08) 8940416 8941235
Fax: (08) 8940279
Email: congty32@hcm.vnn.vn
Le Duan St., Bac Son Ward, Kien An
Dist., Hai Phong City
Tel: (031) 876155
Fax: (031) 787212
Tran Hung Dao St., My Quy Ward, Long
Xuyen City, An Giang Province
Tel: (076) 834079 834958
Fax: (076) 824908 834915
Email: ag.garmex@hcm.vnn.vn
100/11 12 13 An Duong Vuong St.,
Dist.5, Ho Chi Minh City
Tel: (08) 8331429 8350059
Fax: (08) 8350058
Email: anphuoc@hcm.vnn.vn
Website: www.anphuoc.com
Ke St., Bac Giang Town, Bac Giang
Province
Tel: (0240) 852156
Fax: (0240) 854655
Email: bagarco@vol.vnn.vn
2 Nguyen Thi Luu St., Tran Phu Ward,
Bac Giang Town,
Bac Giang Province
Tel: (0240) 854386 854225
Fax: (0240) 855879
Lieu Bao Comm., Tien Du Dist., Bac Ninh
Province
Tel: (024) 1837910
Fax: (024) 1838435
19 Bach Mai Export Garment
Enterprise
Trade name: BAMACO
Director: Nguyen Huu Hiep
Jackets; Trousers;
Shirts
20 Bao Phuong Company
Director: Nguyen Huu
Quach
Garment
21 Binh Minh Garment
Company
Director: Dang Ngoc
Chinh
Jackets; Trousers;
Sportswear;
Others
22 Binh Minh Garment
Jointstock Company
Trade name: BIGAMEX
Director: Doan Xuan Mai
T-shirt; Polo
shirt; Jogging
suit; Sportswear;
Baby clothes
23 Binh Thuan Garment Im-
Ex Company
Trade name: BTEXGA
Men shirt,
jackets, trouser
Director: Huynh Van Nghi
Member of VITAS
24 Cam Binh Textile
Garment Co
Trade name: BAGARCO
Director: Nguyen Trong
Tien
Garment;
Production of
sport shoes
25 Cam Pha Garment making
for Export Enterprise
Director: Dam Van Gioi
Garment
26 Chan Viet Co Ltd
Director: Le Thuy Doan
Trang
Knitwear; Kinds
of clothes
27 Chin Phong Garment
Company.
Director: Dai Minh Hoa
Producing and
trading in
garment products.
28 Chien Thang Garment
Company
Trade name: CHIGAMEX
Director: Doi Thi Thu
Thuy
Jackets; Pant;
Vest; Shirt;
Dresses; Shorts;
Sportswear; Dress
gloves;
536 Bach Mai St., Hanoi
Tel: (04) 624007

Group 18, Area 10, Giacam Ward, Viet Tri

City, Phu Tho Province
Tel: (0210) 846271
Hoa Thuong comm., Dong Hy Dist, Thai
Nguyen Province
Tel: (0280) 820347
Fax: (0280) 820347
440 No Trang Long St., Ward 13, Binh Thanh
Dist., Ho Chi Minh City
Tel: (08) 8432358 8055147 8055973
Fax: (08) 8432348
Email: dthangbmx@hcm.vnn.vn;
bigamex@hcm.vnn.vn
200 Nguyen Hoi St., Phan Thiet Ward, Binh
Thuan Province
Tel: (062) 821947 824720
Fax: (062) 823347
Lai Cach Hamlet, Cam Binh Dist., Hai Duong
Province
Tel: (0320) 8786452 8786414
Fax: (0320) 876104
Quang Han hamlet, Cam Pha Town, Quang
Ninh province
Tel: (033) 862069
1076-1080 Ta Quang Buu St., Ward 6, Dist.8,
Ho Chi Minh City
Tel: (08) 9812943
Fax: (08) 9812942
Email: chanviet@hcm.vnn.vn
111/1200A 26/3St., Go Vap Dist., Ho Chi
Minh City
Tel: (08) 8947146
Fax: (08) 8947148
22 Thanh Cong St., Ba Dinh St., Ha Noi
Tel: (04) 8312075
Fax: (04) 8312208
Email: chigamex@fpt.vn
29 Cho Lon Garment
manufactured Im-Ex Co.,
Ltd.
Trade name: Garmex Cho
Lon
Director: Vo Thi Le
30 Company No.26
Ministry Of Defense
Director: Nguyen Manh
Tuong
31 Da Lat Garment Im-Ex
Company.
Trade name: DAGEXCO
Director: Cao Duy Hoang
32 Da Nang Export-Import
Company
Director Lu Bang
33 Dai Bao Industrial
Garment Company.
Director: La Thuyen
34 Dai Dong Garment
Commune
Director: Cao Van Khanh
35 Dai Han Co Ltd
Director: Nguyen Thi Lien
36 Dai Hung Garment
Manufacturing Co.,Ltd
Director: Dam Ngan Chi
37 Dai Quang Maika
Co.,Ltd.
38 Dai Viet Hai Phong
Jointstock Garment Co
Trade name: DAVICO
Director: Tran Quang
Nam
Garment (Shirt;
Jacket; Sport
wear)
Garment; Hats;
Footwear
Garment
Garment
Producing and
trading in
garment products.
Jackets, Shirt
Handicraft,
garments
Garment
Garment
Jackets;
Sportwear; Shirt
Binh Dang IPZ , Dist.8, Ho Chi Minh City
Tel: (08) 8551041-8502960-8501020
Fax: (08) 8503103
Sai Dong Industrial Zone, Gia Lam, Ha Noi
Tel: (04) 8751527
Fax: (04) 8751460
Email: x26@hn.vnn.vn
9 Phu Dong Thien Vuong St., Ward 9, Da Lat
city, Lam Dong Province.
Tel: (063) 823624.
Fax: (063) 830727.
Email: dagexco@hcm.vnn.vn
Website: www.dagexco.com.vn

6 Le Loi St., Hai Chau Dist., Danang City.

Tel: (0511) 821819
Fax: (0511) 821049
578 Ben Binh DongSt., Dist8., Ho Chi Minh
City
Tel: (08)8861848
Fax: (08) 9500026
279 Dien Bien Phu St., Quang Trung Ward,
Hung Yen Town, Hung Yen Province
Tel: (0321) 862590
18 Hang Non St., Hoang Kiem Dist., Ha Noi
Tel: (04) 8251294 7165379
Fax: (04) 8733907
49/11St.14, Tan Binh Dist., Ho Chi Minh City
Tel: (08)9610069
Fax: (08) 8565557
45 Hamlet3, Binh Hung Hoa Ward, Binh
Chanh Dist., Ho Chi Minh City.
Tel: (08) 8755196
Fax: (08) 8755197
279 Cho Hang St., Le Chan Dist., Hai Phong
City
Tel: (031) 854281
Fax: (0321) 854342
Email: haiga@hn.vnn.vn
39 Dalat 27/7 Malaysia
Jointventure Company
40 Dalat Garment Im-Ex
Company
Trade name: DAGEXCO
Director:Cao Duy Hoang
41 Dan Sinh Garment
Company (DASIMEX)
Director: Nguyen Van
Chien
42 Da Nang Carpet Garment
Embroidery Company
Director: Nguyen Thi
Hong Nhi
43 Dap Cau Garment
Company
Trade name: DAGARCO
Director: Nguyen Dang
Luan
44 Dong Nai Garment
Jointstock Company
Trade name:
DONAGAMEX
Director: Vu Khac Thai
45 Dong Nai Industrial
Sewing Company
Trade name: DONAMAY
Director: Nguyen The
Thang
46 Dong Tai International Co
Ltd
Director: Nguyen Quoc
Thuan
47 Dong Tien Garment Im-
Export Co Ltd
Trade name: DOVITEC
Director: Vu Ngoc Thuan
Garment;
Embroidery;
Handicrafts
Jackets
Jackets; Trousers;
Down coat;
Ladywear
Jackets; Coat;
Shirt; Pullover;
Dress; Trousers
Jackets
Garment
Fashion items
Garment
1 Van Kiep St., Ward 8, Dalat City, Lam Dong
Province
Tel: (063) 828888
Fax: (063) 826551
9 Phu Dong Thien Vuong St., Ward 9, Dalat
City, Lam Dong Province
Tel: (063) 823624
Fax: (063) 830727
Email: dagexco@hcm.vnn.vn
Website:www.dagexco.com.vn
45 Giai Phong St., Nam Dinh City
Tel: (0350) 848576
Fax: (0350) 849691
223 Truong Chinh St., An Khe Ward, Thanh
Khe Dist., Danang City
Tel: (0511) 712259 842455 842499
Fax: (0511) 842413
Email: dananggarment@dng.vnn.vn
Thi Cau St., Bac Ninh Town, Bac Ninh
Province
Tel: (0241) 821290
Fax: (0241) 821745
Email: dagarco@hn.vnn.vn
Road No.2 Bien Hoa, No.1 Industry Zone, Bien
Hoa City, Dong Nai Province
Tel: (061) 836151 836271 836147
Fax: (061) 836141
Email: donagamex@saigonnet.vn
An Binh Ward, Bien Hoa Industrial Zone, Bien
Hoa City, Dong Nai Province
Tel: (061) 836117 836266
Fax: (061) 836118
Phuc Thai Industrial Zone, Kim Thanh Dist,
Hai Duong Province
Tel: (0320) 722061
Fax: (0320) 722065
Email: dongtaihd@hn.vnn.vn;
thuan@dongtaihd.com.vn
Website:www.dongtai.com
No.10 Road No.5, Tan Tien Precinct, Bien Hoa
City, Dong Nai Province
Tel: (061) 822248 827147 823011
Fax: (061) 823441
Email: dovitec@hcm.vnn.vn
48 Dong Xuan Knitting
Company (DOXIMEX)
49 Duc Giang Garment
Import-Export Company
Trade name: DUGARCO
Director: Tran Xuan Can
50 Epic Designer Vietnam
Company
51 Export Garment Co Ltd
(Belonging to the General
Im-Export Co No.1)
Director: Quach Chien
Thang
52 Export Garment Co Ltd
(Belonging to Ministry of
Agriculture and Rural
Development)
Trade name: EXGARCO
Director: Vu The Vinh
53 Fashion Garment 2 Co Ltd
54 Fashion Garment
Jointstock Company
Director: Nguyen Hoai
Nam
55 Garment Company 379
Director: Nguyen Van
Truong
56 Garment Company No.10
Trade name: GARCO10
Director: Dang Phuong
Dung
57 Hanoi Textile Company
(HANOSIMEX)
Knitted fabrics,
Knitwear,
underwear,
Children's Wear
Shirts; Jackets;
coat; Trousers;
Sportswear
Garment export
Jackets; Trousers
Jackets; Trousers;
Skirt
Jeans and other
garment
Garment
Jackets; Shirts;
Sportswear;
Trousers; coat;
Shirts; Jackets;
Trousers; Work
wear
Towels, knitwear,
children's
knitwear, Jackets
67 Ngo Thi Nham St., Hanoi
Tel 84.4.9716564
Fax 84.4.9715580
doximex@hn.vnn.vn
59 Duc Giang St., Gia Lam Dist., Hanoi
Tel: (04) 8271344
Fax: (04) 8271896
Email: dugarco@hn.vnn.vn
Bien Hoa 2 Industry Zone, Dong Nai Province
Tel: (061) 824708
Fax: (061) 824712
Km 110, Highway 5, Doan Xa, Dong Hai, An
Hai
Tel: (031) 766211
Fax: (031) 827079
Email: mayth1ht@yahoo.com
20D Phuong Mai Ward, Dong Da Dist., Hanoi
Tel: (04) 5761736
Fax: (04) 8524492
Bien Hoa 2 Industry Zone
Tel: (061) 836181
41 Ben Chuong Duong St., Dist.1, Ho Chi
Minh City
Tel: (08) 8212795
Fax: (08) 8231629
35 Chua Thong, Son Loc Ward, Son Tuy
Town
Tel: (0834) 832139
Km 10, Sai Dong St., Gia Lam Dist., Hanoi
Tel: (04) 8276923
Fax: (04) 8276925
Email: garco10@fpt.vn
Website: www.garco10.com
Mai Dong St., Hai Ba Trung Dist., Hanoi
Tel 84.4.8624619
Fax 84.4.8622334
hanosimex@hn.vnn.vn
home.vnn.vn/adertisement/hanosimex
58
59
Ha Noi Industrial Canvas
Textile Co. (HAICATEX)
Add :
Hai Duong Garment
Company No.1
Director: Vu Duc Tranh
60 Hai Ha Garment Joinstock
Company
Trade name:
HAIHAGAMEX
Director: Le Xuan Vu
61 Hai Hung Garment
Company No.2
Director: Dao Hong Phu
62 Hai Phong Co for Im-Ex
Production & Business
Trade name: APROTEX
63 Ho Guom Joint- Stock
Garment Company
64 Hoa Binh Garment
Company (PEGARIMEX)
65 Hoa Binh 3/2 Garment
Export Company
Trade name: HOGAMEX
66 Hoa Tho Textile-Garment
Company (HOTEXCO)
67 Hoang Thi Loan Knitting
Company
Jackets; Shirt;
Trousers;
Sportwear; Skirt
Jackets; Trousers;
Skirt; Sportwear
Jackets; Trousers;
Children wear
Garment
Jackets, shirts
Jackets, shirts,
trousers,
sportswear
Shirt; Jacket;
Trousers; School
uniform;
Sportswear
Yarns, towels,
gray fabrics,
home textile,
garments
Knitted fabrics,
knitwear
93 Linh Nam, Hai Ba Trung Dist, Hanoi
www.vinatex.com/members/haicatex.htm
4 Chi Lang St., Hai Duong City, Hai Duong
Province
Tel: (0320) 852056
Fax: (0320) 853624
Email: may1hd@hn.vnn.vn
15 Tran Phu St., Ngo Quyen Dist., Hai Phong
City
Tel: (031) 921072
Fax: (031) 921072
Hien Nam Ward, Hung Yen Town, Hung Yen
Province
Tel: (0321) 862310
Fax: (0321) 862365
5 Cau Tre St., An Duong Town, An Hai Dist.,
Hai Phong City
Tel: (0310) 870117 871543
Fax: (0310) 871777 871706
Director: Quach Chien Thang
7 Tuong Mai St, Hai Ba Trung Dist, Hanoi
Tel 84.4.6621111
Fax 84.4.6621111
380 Ben Nguyen Duy, Dist. 8, HCMC
Tel 84.8.8555566
Fax84.8.8553072
mayhoabinh@hcm.vnn.vn
www.hoabinhgarment.com
14 An Duong Vuong St., Cham Mat Ward, Hoa
Binh Town
Tel: (018) 858065
Fax: (018) 858003
Email: hogamex@vol.vnn.vn
Hoa Tho Commune, Hoa Vang Dist, Da Nang
Tel 84.511.846925
Fax84.511.846216
hotexco@dng.vnn.vn
www.vinatex.com/members/hotexco.htm
100 Nguyen Van Troi St, Vinh City, Nghe An
Province
Tel 84.38.855184
Fax 84.38.855422
68 Hop Thinh Co
69 Hung Thinh Garment and
Embroidery Co
Director: Dao Phu Vinh
70 Hung Viet Garment
Company (HUNG VIET
GARCO)
Director: Tran Xuan Lam
71 Hung Yen Garment
Company
Trade name: HUGARCO
Director: Luong Thi Huu
72 Huong Canh Garment Co
Director: Nguyen Xuan
Hoa
73 Huu Nghi Company
(Danang)
Trade name: HUMEXCO
Director: Nguyen Luong
Dinh
74 Huu Nghi Garment
Company
Trade Name: HUGAMEX
Director: Cao Son Ngoc
75 Import-Export Production
& Trading Corporation
(PROSIMEX)
Director: Nguyen Nam
Phuong
76 Ivory Vietnam Co Ltd
77 Khanh Hoa Garment
Company
Director: Vo Thanh Quang
Garment
Woven and
Knitted garment;
Shirt; Jackets; T-
shirt
Jackets; Pants;
Swimwear; Shirt;
T-shirt; Polo
shirt; Sport wear;
Coat; Uniform
Jackets; Trousers;
Children wear;
Lady wear
Garment
(Trousers;
Jackets; Shirt)
Garment
Garment
Nomura Industrial Zone, An Hai, Hai Phong
City
Tel: (031) 743015
Fax: (031) 743014
232 Tran Dang Ninh St., Ha Dong Town, Ha
Tay Province
Tel: (034) 824880
Fax: (034) 824196
Di Su Ward, My Hao Dist, Hung yen Province
Tel: (0321) 943005
Fax: (0321)943867
Email: hungvietgaco@fmail.vnn.vn
83 Trung Trac St., Hung Yen Town, Hung Yen
Province
Tel: (0321) 862312
Fax: (0321) 962500
Email: hugaco@hn.vnn.vn
Huong Canh Town, Binh Xuyen Ward, Vinh
Phuc Province
Tel: (0211) 866345
Fax: (0211) 866521
53 Nui Thanh St., Hoa Thuan Ward, Danang
City
Tel: (0511) 821430 821571
Fax (0511) 822472
636-638 Nguyen Duy St., Ward 12, Dist 8, Ho
Chi Minh City
Tel: (08) 8554176 8553415 8555411
Fax: (08) 8553476
Email: hugamex@hcm.fpt.vn
Khuong Dinh Ward, Thanh Xuan Dist., Hanoi
Tel: (04) 8584087 8585269 8583672
Fax: (04) 8585009
Km 6+500, Thai Binh-Nam Dinh Road, Vu thu
12 Le Thanh Ton St., Nha Trang City, Khanh
Hoa Province
Tel: (058) 822527 - 823983
Fax: (058) 823830
78 Kien Giang Garment Co
Ltd
Director: Nguyen Thi
Thuy
79 Kim Nam Garment Co Ltd
Trade name: KINCO
Director: Truong Thu Van
80 Kiuchi Huu Nghi JV Co
81 Lan Lan Garment Co Ltd
Trade name: LAN LAN
CO LTD
82 Le Truc Garment Stock
Company
Trade name: LEGASTCO
Director: Duong V. Khan
83 Legamex Company
Trade name: LEGAMEX
Director: Le Dong Trieu
84 March 8 Textile Company
(EMTEXCO)
85 Meko Garment Factory
Director: Tran Chi Gia
86 Merak Indera Vietnam Co
Ltd
87 Minh Ha Garment
Company
Director: Nguyen V. Dong
88 Minh tri Co Ltd
Director: Nguyen The
Hung
Fashion items;
Bag; Sack;
Jackets;
Sportswear
Garment
Garment
Garment
Jackets; Shirt;
Skirt; Work wear;
Uniform
Footwear;
Garment;
Labeling
Yarns, working
cloth, jackets,
pants, shirts
Jackets; Down-
Jackets
Garment
Jackets; Mosquito
net; Felt clothes;
Trousers
T-shirt; Polo
shirt; Knitted
garment
Llosk 4, Tran Phu St., Tu Son Town, Bac Ninh
Province
Tel: (0241) 831614
Fax: (0241) 822558
1A-B Tran Xuan Soan St., Tan Thuan Ward,
Dist.7, Ho Chi Minh City
Tel: (08) 8728502 8721521
Fax: (08) 8728502
638 Nguyen Duy St., Dist.8, Ho Chi Minh City
Tel: (08) 8559428
Fax: (08) 8559248
Km 4, St.10, Phu Khanh Ward, Thai Binh
province
Tel: (037) 836638
Fax: (037) 834641
Email: lanlanco@hn.vnn.vn
8B Le Truc St., Ba Dinh Dist., Hanoi
Tel: (04) 7334324
Fax: (04) 7337217
15 Truong Son St., Ward 15, Dist.10, Ho Chi
Minh City
Tel: (08) 8641386 8660564
Fax: (08) 8641265 8660565
Email: legamex@hcmc.netnam.vn
Website: ww.legamex.com.vn
460 Minh Khai St., Hai Ba Trung Dist., Hanoi
Tel 84.4.8624460
Fax 84.4.8624463
www.vinatex.com/members/emtexco.htm
Truc Chinh St., Tra Noc Industrial Zone, Can
Tho Province
Tel: (071) 841263
Fax: (071) 841330
Email: mekogarmentsmtp@hcm.vnn.vn
Noi Bai Industrial Zone, Hanoi
Hoai Duc, Ha Tay Province
Tel: (034) 765152
Fax: (034) 861280
Ba Hang Village, Linh Nam Ward, Thanh Tri
Dist, Hanoi
Tel: (04) 8622802
Fax: (04) 8623602
Email: mintrikd@fmex.vnn.vn
89 Minh Tuan Garment &
Constructinon Co Ltd
Director: Nguyen Van
Han
90 Mode Viet Company
Director: Le Duong Lam
91 Mondial Privat Export
Garment Co Ltd
Trade name: MODIAL
Director: Dang Ngoc Tuy
92 Mountech Co Ltd
93 MSA Garment Co Ltd
94 Muraya Vietnam Co Ltd
95 My Anh Co Ltd
Director: Tu Thi Bich Loc
96 My Dung Garment
Embroidery Co Ltd
Director: Cao Hoa Long
97 Nam Dinh Garment and
Fine Arts Company
Director: Nguyen Gia
Thanh
98 Nam Dinh Garment
Company
Trade name: NAGACO
Director: Phan Duy Hanh
99 Nam Ha Export Garment
Construction
Director: Nguyen Thi
Thanh
Garment;
Construction
Garment
Garment
Garment, Bags
Garment
Underwear;
Garment
Garment
Garment
Jackets; Trousers
Shirt; Jackets;
Trousers;
Sportswear
Jackets; Lady
wear; Trousers
Km 52, St.5., Den Thanh Zone, Binh Han
Ward, Hai Duong Town, Hai Duong Province
Tel: (033) 853368
Fax: (033) 856727
4A Pham Ngoc Thach St., Dist.1, Ho Chi Minh
City
Tel: (08) 9300606
Fax: (08) 9300505
59 Mac Dinh Chi St., Dakao Ward, Ho Chi
Minh City
Tel: (08) 8962010
Fax: (08) 8962009
Ho Van Hue Industrial Zone, Ho Chi Minh
City
Tel: (08) 8446159 8444535
Fax: (08) 8650304
Email: mountech@hcm.vnn.vn
18 Phan Van Tri St., Ward 17, Go Vap Dist.,
Ho Chi Minh City
Tel: (08) 8943821
Fax: (08) 8943823
Tan Thuan EPZ, Ho Chi Minh City
Tel: (08) 8729971
Fax: (08) 8729970
159 Lo Duc St., Hai Ba Trung Dist., Hanoi
Tel: (04) 8219552
Fax: (04) 8260970
Email: myanhco@fpt.vn
Song Than Industrial Zone, Binh Duong
Province
Tel: (0650) 853569 852740
Fax: (0650) 852458
4 Tran Hung Dao St., Nam Dinh City
Tel: (0350) 848432
Fax: (0350) 845457
46 Tran Hung Dao St., Nam Dinh City
Tel: (0350) 849627
Fax: (0350) 849451
Email: nagago@hn.vnn.vn
Website: www.nagaco.com.vn
510 Truong Trinh St., Nam Dinh City
Tel: (0350) 649563 649326
Fax: (0350) 644767
100
Nam Thien Co Ltd
Director: Tran Le Ha
101
New Top Garment Pte Ltd
Trade name: NEWTOP
GARMENT CO LTD
Director: Lai Kim
102
Ngan An Co Ltd
Director: Nguyen Minh
Quang
103
Ngan Ha Garment Co Ltd
Director: Phan Thi My
Dung
104
Nghe An Garment
Company
Director: Vo Van Ban
105
Ngoc Phuong Garment Co
Ltd
Director: Nguyen Thi Leo
106
Nguyen Hoang Co Ltd
Director: Nguyen Hoang
Chuong
107
Nha Be Garment Import-
Export Company
Trade name: NHABECO
Director: Vu Duc Thinh
108
Ninh Binh Garment
Company
Trade name: NIBIGA
Director: Le Van Dung
109
Nobland Vietnam Co Ltd
Shirt; Jackets;
stockinet
Garment;
Children wear;
Baby wear; Polo
short, T-shirt,
Nightdress
Long dress;
Fashion
Garment
Jackets; Trousers
Jackets; Work
wear; Sportswear
Children wear; T-
shirt; Polo shirt;
Jackets; Coat
Garment
Garment; Carpet
and Embroidery
Garment
Tan Binh Industry Zone, Ward 15, Tan Binh
Dist., Ho Chi Minh City
Tel: (08) 8650052
28 Gio An St., Ward 17, Tan Binh Dist., Ho
Chi Minh City
Tel: (08) 7505679 7507358 7507357
Fax: (08) 7505383
Email: nhattanco@hcm.vnn.vn
Website: www.newtopnhattan.com
7 Tran Phu St., Ba Dinh Dist., Hanoi
Tel: (04) 8438397
Fax: (04) 7333008
169/6A Bau Nai Hamlet, Dong Hung Thuan
Ward, Ho Chi Minh City
Tel: (08) 8911574
Email: notes han@yahoo.com
Bac Vinh Industry Zone, Dang Thai Mai St.,
Vinh City, Nghe An Province
Tel: (038) 511830
Fax: (038) 511810
Email: nagco@vol.vnn.vn
231 Tran Nguyen Han St., Hai Phong City
Tel: (031) 856557
Fax: (031) 856557
Nhu Quynh Town, Van Lam Dist., Hung Yen
Province
Tel: (0321) 986304
Email: nhchuong@netnam.vn
Ben Nghe St., Tan Thuan Dong Ward , Dist.7,
Ho Chi Minh City
Tel: (08) 8720077 8729124
Fax: (08) 8729937 8725107
Email: nhabeco@hcm.fpt.vn
Website: www.nhabe-textile.com
9 Dinh Tien Hoang St., Bich Dao Dist., Ninh
Binh Town
Tel: (030) 871172
Fax: (030) 875274
Email: nibiga@hn.vnn.vn
Tan Thoi Hiep Industry Zone, Ho Chi Minh
City
Tel: (08) 8218524
Fax: (08) 8214938
110
Nomura Fotranco
Garment Jointventure
Company
111
North Gaiety Apparel
Vietnam Co Ltd
112
Novelty Vietnam Co Ltd
113
Nui Thanh Garment
Jointstock Company
114
P&P Co Ltd
115
Pho Hien Garment
Company
Director: Do Dinh Lam
116
Phu Dong Garment
Company
Director: Duong Duc
Thanh
117
Phu Ha Co Ltd
Director: Duong Duc
Trung
118
Phu Tho Garment
Company
Director: Truong Van
Quang
119
Phu Tho Garment
Company No.1
Trade name: GACOPHU
No.1
Director: Le Khac Duong
120
Phu Yen Garment Import-
Export Company
Director: Hoang Cong
Kha
Garment
Garment
Garment
Jackets
Garment; suits
Trousers; Knitted
garment
Shirt
Jackets; vest;
Shirt
Jackets; Dress;
Trousers;
Sportwear;
Childrenwear
Jackets; Trousers;
Workwear;
Sportwear
fine art articles,
garment
8 Nguyen Hue St., Dist., Ho Chi Minh City
Tel: (08) 8242246
Fax: (08) 8295396
Email: ntc@hcm.vnn.vn
Land Group 235 Map 2, Formerly Ward 21,
Ward 16, Dist.8, Ho Chi Minh City
Tel: (08) 8768414
Fax: (08) 8768413
Linh Trung EPZ, Ho Chi Minh City
Nui Thanh Dist., Quang Nam Province
Tel: (0510) 871905
Fax: (0510) 871905
Tan Thuan Dong Town, Dist.7, Ho Chi Minh
City
Tel: (08) 8729464
Fax: (08) 872944
Email: Chilsinghats@hcm.vnn.vn
311 Le Van Luong St., Hien Nam Ward, Hung
Yen Town, Hung Yen Province
Tel: (0321) 862704
Fax: (0321) 864993
Email: ctmphien@hn.vnn.vn
Sai Dong, Gia Lam, Hanoi
Tel: (04) 8765573
Fax: (04) 8767235
19 Nguyen Van Thu St., Dist.1, Ho Chi Minh
City
Tel: (08) 8297114
Phong Chan Ward, Phu Tho town, Phu Tho
Province
Tel: (0210) 821396
Fax: (0210) 820517
Gia Cam Ward, Viet Tri Dist., Phu Tho
Province
Tel: (0210) 846208
Fax: (0210) 846680
81 National Higway 1, Ward 2, Tuy Hoa Town,
Phu Yen Province
Tel: (057) 824262
Fax: (057) 823104
121
Phuong Dong Garment
Company
Trade name: FUGAMEX
Director: Vu Duc Giang
122
Phuong Nam Garment
Joint stock Company
Director: Hung Quoc Tuan
123
Prosimex Garment
Company
Trade name: PROSIMEX
Director: Nguyen Trung
Xo
124
Qualitex Co Ltd
125
Quan Hoa Industrial
Commune
Director: Pham Thi Hong
Diep
126
Quang Ninh Export
Garment Company
Trade name:
QUEXGACO
Director: Nguyen Trong
Kinh
127
Saigon 2 Garment Making
Company
Trade name: SADING
Director: Ngo Trung Kien
128
Saigon 3 Garment Joint
stock Company
Trade name: GTEXIM
Director: Pham Xuan
Hong
129
Saigon Garment Import-
Export Company
Trade name: GARMEX
SAIGON
Director: Le Quang Hung
130
Sao Mai Corporation
(Dong Thap)
Director: Nguyen Thanh
Cong
Jackets; Sporting
suit; Pullover;
Shirt
Package; Garment
Jackets; Trousers;
Knitted garment
Garment
Jackets; Trousers;
Children wear
Jackets;
Sportswear;
Shirts; Lady vest
Garment
Jeans; Pants;
Jackets; Uniform;
Working wear
Knitwear;
Jackets; Skiwear;
Pant
Shirt; Jackets;
Trousers; T-shirt;
Pullover
18 Quang Trung St., Ward 12, Go Vap Dist.,
Ho Chi Minh City
Tel: (08) 910870
Fax: (08) 8940328
Email: fugamex@hcm.vnn.vn
Website: www.fugamex.com
Km 6, Gia Phong St., Thanh Xuan Dist., Hanoi
Tel: (04) 8643449
Fax: (04) 6640844
Group 4, Division 4, Khuong Dinh, Thanh
Xuan Dist., Hanoi
Tel: (04) 8553006
Fax: (04) 8552953
Email: xont@netnam.vn
Km7, Road 5, Trau Quy, Gia Lam, Hanoi
Tel: (04) 8767875
44 Hamlet No.86, Quan Hoa Ward, Cau Giay
Dist., Hanoi
Tel: (04) 8241748
Fax: (04) 8336955
Km 2, Nguyen Van Cu St., Ha Long City,
Quang Ninh Province
Tel: (033) 826362
Fax: (033) 824426
Email: quexgaco@hn.vnn.vn
15 An Ton St., Ward 17, Tan Binh Dist., Ho
Chi Minh City
Tel: (08) 8645331 8640086 8642015
Fax: (08) 8640031
Email: saigon2@hcm.vnn.vn
140 Nguyen Van Thu St., Dist.1, Ho Chi Minh
City
Tel: (08) 8225255 8222403 8291377
Fax: (08) 8220619
Email: sg3@hcm.fpt.vn/ sg3pxh@hcm.fpt.vn
213 An Duong Vuong St., Dist.5, Ho Chi Minh
City
Tel: (08) 8557166 8557300
Fax: (08) 8557299
Email: gmsg@hcm.fpt.vn
Website: www.garmexsaigon.com
A44 30th Province Road, Cao Lanh Town,
Dong Thap Province
Tel: (067) 851452 851482
Fax: (067) 851482 851423
131
Scavi Vietnam Export
Garment & Leather Co
Ltd
Director: Tran Thi Moc
Lan
132
Shing Viet Co Ltd
Director: Jiang Li Chia
133
Son Chinh Co Ltd
Director: Le Thi Bich
Tram
134
Song Da 20 Garment
Company
Director: Pham Cong
Bong
135
Song Da Export Garment
Enterprise
Director: Dao Duy Phong
136
Song Hong Garment
Company (Nam Dinh)
Director: Bui Duc Thinh
137
Song Hong Garment Co
(Phu Tho)
Trade name: SOHO
GARMENT
Director: Tran Phuong
Cach
138
Tan Chau Garment Export
Co Ltd
Trade name: TCC
Director: Nguyen Thi
Loan
139
Tan Phu Cuong Ex-Im
Industry & Trade Co Ltd
Trade name: TAPHUCO
Director: Nguyen V. Sinh
Lady s underwear
Garment
Knitted garment;
Woven garment
Jackets; Trousers;
Shirts; Uniform;
Work wear
Shirts; Jackets;
Uniform
Jackets
Garment
Garment
Garment;
Business of
chemical, knitting
and dyeing
735 An Dien, An Phu Ward, Thu Duc Dist., Ho
Chi Minh City
Production workshop: Bien Hoa Industry Zone,
Ho Chi Minh City
Tel: (061) 834691
Fax: (061) 834696
Email: scavi-vn@hcm.vnn.vn
Km 9, Hanoi Highway, Thu Duc Dist., Ho Chi
Minh City
Tel: (08) 8966947
Fax: (08) 8966952
Email: solon-lin@hcm.vnn.vn
Dong Tri St., Tu Hiep Town, Thanh Tri Dist.,
Hanoi
Tel: (04) 8615799
Fax: (04) 8615636
Email: sonchinh@netnam.vn
Tan Thinh Ward, Hoa Binh Town, Hoa Binh
Province
Tel: (018) 854031
Fax: (018) 854881
Tan Thinh Ward, Hoa Binh Town, Hoa Binh
Province
Tel: (018) 854653
Fax: (018) 854881
Email: phongdd@sdc.com.vn
28 Pham Hong Thai St., Nam Dinh City, Nam
Dinh Province
Tel: (0350) 649365
Fax: (0350) 846737
Email: songhong@hn.vnn.vn
Hong Ha St., Tien Cat Ward, Viet Tri City, Phu
Tho Province
Tel: (0210) 846506
Fax: (0210) 848490
Email: sohoga@vol.vnn.vn
65/5 Thuan Kieu Sub-hamlet, Tan Thoi Nhat
Ward, Hoc Mon Dist., Ho Chi Minh City
Tel: (08) 8916311 8916130
Email: tanchau@tlnet.com.vn
37/9 Thuan Kieu St., Dist.12, Ho Chi Minh
City
Tel: (08) 8916337 8916338
Fax: (08) 8916506
140
Tan Thanh Dat Co Ltd
Director: Nguyen Huu
Khoa
141
Tay Do Garment Co Ltd
Director: Pham Van Minh
142
Tay Do Garment Im-Ex
Co Ltd
Trade name:
MEKOVITEX
Director: Nguyen Thai
Hung
143
Terada Vietnam Company
144
Thach Binh Garment &
trading Co Ltd
Director: Ta Pham Phi Cat
145
Thai Binh Export Garment
Company
Trade name: THABICA
Director: To Xuan Hung
146
Thai Nguyen Garment
Company
Director: Nguyen Van
Thoi
147
Thang Long Garment
Company
Trade name: THALOGA
Director: Le Van Hong
148
Thanh Dong Garment
Company
Trade name: DOGACO
Director: Nguyen Van
Thanh
ndustrial
Embroidery;
Sewing Garment
Children s clothes
Garment (Shirts;
Trousers; Jackets;
Sportwear)
Kimono
Production
Man s trousers;
Shirts; Women
fashion clothes
Garment
Jackets; Trousers;
Sportwear
Shirts; Trousers;
suit; Jackets;
Jeans; Overcoat
Jackets; Trousers;
Sportswear
Dong Tan Quarter, Di An Dist., Binh Duong
Province
Tel: (0650) 730037
Fax: (0650) 742818
Email: info@ttd-cap.com
Website: www.ttd-cap.com
1A Ly Thuong Kiet St., Ward 7, Tan Binh Dist,
Ho Chi Minh City
Tel/Fax: (08) 8658992
73 Mau Than St., An Hoa Ward, Can Tho City,
Can Tho Province
Tel: (071) 894385 894229
Fax: (072) 891645
Email: taydo@hcm.vnn.vn
27F Tran Nhat Duat St., Tan Dinh Ward,
Dist.1, Ho Chi Minh City
Tel: (08) 8443665
Fax: (08) 8436481
17/6A Pham Van Chieu St., Ward 12, Go Vap
Dist., Ho Chi Minh City
Tel: (08) 9968240 9968244
Fax: (08) 9968242
Email: tbgc@siagonnet.vn
Website: thachbinhgarment.com
Km 2.5, Highway 10, Quang Trung Ward, Thai
Binh Province
Tel: (036) 831695
Fax: (036) 838308
Email: ctmxk-tb@hn.vnn.vn
160 Minh Cau St., Thai Nguyen Town, Thai
Nguyen Province
Tel: (0280) 855617
Fax: (0280) 852060
Email: vietthangtn@hn.vnn.vn
250 Minh Khai St., Hai Ba Trung Dist., Hanoi
Tel: (04) 8622142
Fax: (04) 8623374
Email: thaloga@fpt.vn
Ben Han, Hai Duong City, Hai Duong Province
Tel: (0320) 851055
Fax: (0320) 852689
149
Thanh Hoa Garment
Company
Trade name: THAGACO
Director: Luu Trong Manh
150
Thanh Nam Garment
Company
Director: Vu Duy Khanh
151
Thanh Phong Garment Co
Ltd
152
Thanh Tri Export Garment
Company
Director: Pham Tuan Ha
153
Thien An Garment
Embroidery Co Ltd
Trade name: THIAN
Director: Bui Thi Nhung
154
Tien Tien Garment Im-Ex
Company
Trade name: TIVTEC
Director: Pham Thi Du
155
Viet An Production Im-
Export Company
Trade name:
VAPRMEXCO
Director: Pham Minh
156
Viet Anh Garment Factory
Director: Giang Thi Hang
157
Viet Thai Jointstock
Export Garment Company
Director: Mai Cong Hoa
158
Viet Thang J Trading
Manufacturing Co
Trade name: VITA-J
Director: Phan Van Viet
Jackets; Shirts;
Trousers
Jackets; Trousers;
Knitted garment;
Down coat
Jackets;
Sportswear
Jackets; Children
wear; Skiwear
Garment and
Embroidery.
Lady wear;
Children wear
Jackets; Trousers;
T-shirt; Polo
shirt; Skirts;
Sportswear
Shirts; Jackets;
coat; Trousers;
Shirt
Jackets;
Sportswear;
Leather clothes
Garment
119 Tong Duy Tan St., Thanh Hoa City, Thanh
Hoa Province
Tel: (037) 855691
Fax: (037) 852608
Email: thanhhoaga@hn.vnn.vn
93 Dien Bien St., Loc Hoa Comm., Nam Dinh
Province
Tel/Fax: (0350) 849602
Xuan Thoi Dong Hamlet, Tan Xuan Ward, Hoc
Mon Dist., Ho Chi Minh City
Tel: (08) 8914648
Km 11, National Higway 1A, Van Dien St.,
Thanh Tri Dist., Hanoi
Tel: (04) 8614239
Fax: (04) 8615390
Email: hapro@fpt.vn
299/22 Ly Thuong Kiet St., Ward 15, Dict.11,
Ho Chi Minh City.
Tel (08) 8652485
Fax: (08) 8297317

Phong Thuan A, Tan My Chanh Hamlet, My

Tho City, Tien Giang Province
Tel: (073) 874276
Fax: (073) 877962
Email: tientien@hcm.vnn.vn
Group 1A, Dang Tien Dong St., Dong Da Dist.,
Hanoi
Tel: (04) 8573436
Fax: (04) 8572075
Email: vietan@fpt.vn
Gia Lam Dist., Hanoi
Tel: (04) 513205
Fax: (04) 5137360
Email: vietanhco@.fpt.vn
Km 0.1, Highway 10, Quang Trung Ward, Thai
Binh Province
Tel: (036) 731722
Fax: (036) 831548
Email: maythaibinh@hn.vnn.vn
Website: www.unimextb.com
2/83B Quang Trung St., Hiep Phu Ward,
Dist.9, Ho Chi Minh City
Tel: (08) 8961424 8963608 8452055
Fax: (08) 8452055
Email: vietthang.j@hcm.fpt.vn
159
Viet Thanh Garment Im-
Ex Company
Trade name: VIGACO
Director: Tran Xuan Can
160
Viet Tien Garment
Company
Trade name: VIGACO
Director: Tran Xuan Can
161
Viet Tien Garment
Company
Trade name: VTEC
Director: Nguyen Dinh
Truong
162
Viet Tri Export Garment
Company
Director: Le Thanh
Denmark
163
Vietnam Commercial an
International
Cooperation Jointstock
Company
Director: Le Ba Phuc
164
Vietnam National General
Im-Export Corporation
Trade name:
GENERALIMEX
165
Vina Chang Tai Co Ltd
166
Vinatex Branch in Hai
Phong
Director: Tang Van Han
167
Vinh Phu Garment
Jointstock Company
Trade name:
VIFUGASCO
Director: Pham The Hung
168
Vinh Phu Textile
Company (VITEXCO)
Jackets; Trousers;
Sportswear
Jackets; Trousers;
Sportswear
Shirts; Trousers;
Jackets; Others
Suits and Others
Garment fashion
Shirts; Jackets;
Uniforms
Garment;
Underwear
Garment
Jackets;
Sportswear;
Trousers; Jeans
Yarns, working
cloth, jackets,
fabrics
Gia Dong Ward, Thuan Thanh Dist., Bac Ninh
Province
Tel: (0241) 865103
Fax: (0241) 865100
Gia Dong Ward, Thuan Thanh Dist., Bac Ninh
Province
Tel: (0241) 865103
Fax: (0241) 865100
7 Le Minh Xuan St., Tan Binh Dist., Ho Chi
Minh City
Tel: (08) 8640800
Fax: (08) 8645085
Email: vtec@hcm.vnn.vn
11 Hao Phong St., Gia Lam Ward, Viet Tri
Dist., Phu Tho Province
Tel: (0210) 846439
Fax: (0210) 848005
536 Bach Mai St., Hai Ba Trung Dist., Hanoi
Tel: (04) 8634478
Fax: (04) 8255214
66 Pho Duc Chinh St., Dist.1, Ho Chi Minh
City
Tel: (08) 8211712 8292990
Fax: (08) 8292968
Email: generalimex@hcm.fpt.vn
Tan Dong Hiep Ward, Thuan An Dist., Binh
Duong Province
Tel: (0650) 750803
174 Le Lai St., Hong Bang Dist., Hai Phong
City
Tel: (031) 836632
Fax: (031) 836928
Email: vinatexhp@hn.vnn.vn
Nong Trang Ward, Viet Tri Dist., Phu Tho
Province
Tel: (0210) 847742
Fax: (0210) 843892
108 Hung Vuong St., Viet Tri City, Phu Tho
Province
Tel 84.210.846409
Fax 84.210.846676
www.vinatex.com/members/vitexco.htm
169
Vinh Thinh Export
Garment and Trading
company
Director: Nguyen Duc
Thinh
170
Vung Tau Export Garment
Co
Trade name:
VIEGARMENT CO
171
Wool Embroidery Carpet
Export Company
Trade name: WEC
SAIGON
Director: Diep Thanh Kiet
172 Y Trang Roo Hsing
International Co Ltd
173
Yen Bai Export Garment
Company
Director: Hoang Duy
Dong
Jackets; Trousers;
Children wear
Director: Nguyen
The Hoi
Shirts; Trousers;
Jackets; Dress
Shirts; Blouse;
Children wear;
Dress; Pyjama;
Embroidery items
Garment
Jackets; Trousers;
Sportswear
11 Pham Su Manh St., Hai Duong City, Hai
Duong Province
Tel: (0320) 857210
Fax: (0320) 857210
848 Binh Gia St., Vung Tau City
Tel: (064) 848372 849422
Fax: (064) 848244 848133
Email: vgf@hcm.vnn.vn
4th Floor, 146 Nguyen Cong Tru St., Dist.1, Ho
Chi Minh City
Tel: (08) 8215757 8222174
Fax: (08) 8296581
Email: wec@tlnet.com.vn
Bien Hoa 2 Industry Zone, Dong Nai Province
Tel: (061) 824701
Fax: (061) 824706
Email: roohsing@hcm.vnn.vn
Website: roohsing.com.tw
271 Tran Hung Dao St., Hong Ha Ward, Yen
Bai Province
Tel: (029) 862839
Fax: (029) 862504
196
APPENDIX 6
IMPORT OF TEXTILE AND GARMENT OF THE WORLD AND THREE
ECONOMIC CENTERS

Unit: $ million
Industry Markets 1990 1995 2001 2002 2003
Textile +
garment
Whole of the world 212.480 310.670 341.360 355.070 395.360
Japan 12.843 24.743 23.942 22.137 24.520
USA 33.707 51.808 81.820 236.733 89.566
EU (15) 107.214 131.411 127.673 133.457 153.828
Total amount of above centres 153.764 207.962 233.435 392.327 267.914
Textile
Whole of the world 104.350 152.320 146.870 152.760 189.420
Japan 4.106 5.985 4.756 4.536 5.035
USA 6.730 10.441 15.429 17.002 18.289
EU (15) 50.370 57.227 46.671 47.091 52.534
Total amount of above centres 61.206 73.653 66.856 221.629 75.858
Garment
Whole of the world 108.130 158.350 194.490 202.310 225.940
Japan 8.737 18.758 19.186 17.601 19.485
USA 26.977 41.367 66.391 66.731 71.277
EU (15) 56.844 74.184 81.002 86.366 101.294
Total amount of above centres 92.558 134.309 166.579 170.698 192.056
Source: World Trade Statistics 2004 WTO.
APPENDIX 7
TEXTILE AND GARMENT EXPORT OF VIETNAM IN THE WORLD MARKET
Unit: Million vnd
Textile and garment export of Vietnam in the world market.
0
500
1000
1500
2000
2500
3000
EU
Japan
United states
Others
EU 410 521 555 609 559 579 580 762
Japan 325 321 417 620 588 521 514 531
United states 12 26 34 49.5 44.6 951 1973 2474
Others 602 483 387.3 613 730.4 701 587 619
1997 1998 1999 2000 2001 2002 2003 2004
Source: World trade statistics, 2004 WTO
198
APPENDIX 8
GROWTH RATE OF TEXTILE AND GARMENT INDUSTRY 1997-2004
Unit : Billion vnd
1998 1999 2000 2001 2002 2003 2004
GDP
GDP growth rate (%)
244.596
5,76%
256.272
4,77%
273.666
6,79%
292.535
6,89%
313.247
7,08%
336.242
7,34%
362.092
7,69%
Indutry output (IO)
IO Growth rate (%) 151.223
12,50%
168.749
11,59%
198.326
17,53%
227.342
14,63%
261.092
14,85%
305.080
16,85%
354.030
16,04%
Processing industry
(PI)
PI Growth rate (%)
120.666
12,08%
133.702
10.80%
158.098
18,25%
183.542
16,09%
213.697
16,43%
252.886
18,34%
293.619
16,11%
Textile and garment
(TG)
TG Growth rate (%)
13.033
12,48%
13.606
4,40%
16.089
18.25%
17.503
8,79%
20.520
17,24%
24.680
20,27%
29.124
18,01%
Ration
TG/GDP 5,33% 5,31% 5,88% 5,98% 6,55% 7,34% 8,04%
TG/IO 8,62% 8,06% 8,11% 7,70% 7,86% 8,09% 8,23%
TG/PI 10,80% 10,18% 10,18% 9,54% 9,60% 9,76% 9,92%
Source: GSO, 2004.
APPENDIX 9
GROWTH FORECAST OF VIETNAM S TEXTILE AND GARMENT INDUSTRY 2005 - 2010
No. Targets
Project 1
(Average level)
Project 2
(High level)
2005 2010 2005 2010
1 Production growth rate per year 3% 8% 12% 14%
2 Export growth rate per year 5% 5% 10% 10%
3 Export turnover ($ million) 4.650 6.000 4.800 7.700
4 Domestic turnover ($ million) 1.150 2.310 1420 3537
5 Total turnover ($ million) 5.800 8.310 6.220 11.237
Source: VINATAS, 2004
APPENDIX 10
GROWTH FORECAST OF VIETNAM S TEXTILE AND GARMENT 2006-2015
No Targets
Project 1
(Average level)
Project 2
(High level)
2006-2010 2011-2015 2006-2010 2011-2015
1 Production growth rate per year 16,60% 14,46% 16,60% 14,46%
2 Export growth rate per year 10,76% 10,20% 15,81% 8,45%
3 Export turnover ($ billion) 7-8 12-13 9-10 14-15
Source: VINATAS, 2004
APPENDIX 11
CONDITIONS TO REACH THE TARGETS OF VIETNAM S TEXTILE AND GARMENT INDUSTRY 2006 - 2
010

Name Unit 2005 2010 Projects $ million Labor (persons) Electricity

(KVA)
Water(m3/
Day)
Land
(ha)
Total 3.136,560 350.000 359.022 204.271 9.940
Materials 179,700 3.400 10.700 25.000 9.014
- Synthetic fiber 1,000 tons 140 260 120 168,000
-Weaving, dying 2.266,110 108.000 161.992 148.004 366
Garment 446,000 158.350 131.485 17.248 432
- Garment factory Million product 1.100 1.800 700 350,000
- Accessory production Factory 9 90,000
- Design centres 1 6,000
- Machanic tools factory 1 5,000 200 1000 1.000 2
Trade, services, R&D 119,750 60.050 3.845 3.020 46
- Fashion design institute 5,000
- Accessory and trims centers 2 114,750
- Education and Training 120,000 20.000 50.000 10.000 80
Source: VINATAS, 2004
201
APPENDIX 12
LIST OF 5 YEARS INDUSTRIAL PROJECTS AND CONSTRUCTIONS AND ESTIMATED BUDGETS
List of projects Unit 2005 Capacity of the industry Investment Investment plans
Total
($ 1,000) Investment 2010 2015 2020 ($ 1,000) 2006-2010 2011-2015 2016-2020
Textile 1.825 2.834 3.632 2.266.110 2.893.430 2.843.430 8.002.970
Garment 1.810 2.868 4.025 446.000 601.000 645.000 1.692.000
Fashion design centers
1
2 2 6.000 6.000 6.000
12.000
Garment factory 1.100 1.800 2.850 4.000 500 350.000 525.000 575.000 1.450.000
Accessory factory
9
16
23
10.000 90.000 70.000 70.000 230.000
Sewing equipment and tools production 1 1 2 5.000 5.000 5.000 10.000
Trade, services, R&D 16 25 33 119.750 66.200 58.550 244.500
Trade and service centers 1
15
23 30 7.650 114.750 61.200 53.550 229.500
R&D 1
1
2 3 5.000 5.000 5.000
5.000
15.000
Education 8 13 17 120.000 66.000 61.200 247.200
University 1 2 2 4.800 4.800 4.800 9.600
College 1 2 3 7.200 7.200 7.200
7.200
21.600
Vocational inst 6 9 12 18.000 108.000 54.000 54.000 216.000
Total ($) 3.136.560 3.853.630 3.914.180 10.904.370
Total 1,000 vnd 50.184.960 61.658.080 62.626.880 174.469.920
Source: VINATAS, 2004
APPENDIX 13
VIETNAM S MAP

Source: CIA the world fact book, 2005

Country name:
The capital:
Government type:
Total area:
Border countries:
Climate:

Population:
Labor force:
Law system:
Executive branch:

GDP:
GDP - Real growth rate:
GDP - per capita:
Inflation rate
(consumer prices):
Administrative divisions:

APPENDIX 14
COUNTRY S PROFILE

Socialist Republic of Vietnam

Ha Noi
Communist state.
329,560 sq km
Cambodia 1,228 km, China 1,281 km, Laos 2,130 km
There are 4 seasons in the North: summer, winter, autumn
and spring, 3 seasons in the Middle and tropical in south
83,535,576 (July 2005 est.)
42.98 million (2004 est.)
Based on communist legal theory and French civil law.
Chief of state: President Tran Duc Luong (since 24
September 1997), Head of government: Prime Minister
Phan Van Khai (since 25 September 1997); First Deputy
Prime Minister: Nguyen Tan Dung (since 29 September
1997);
Purchasing power parity - $227.2 billion (2004 est.)
7.7% (2004 est.)
Purchasing power parity - $2,700 (2004 est.)
9.5% (2004 est.)
59 provinces (tinh, singular and plural) and 5
municipalities (thu do, singular and plural); provinces: An
Giang, Bac Giang, Bac Kan, Bac Lieu, Bac Ninh, Ba Ria-
Vung Tau, Ben Tre, Binh Dinh, Binh Duong, Binh Phuoc,
Binh Thuan, Ca Mau, Cao Bang, Dac Lak, Dac Nong,
Dien Bien, Dong Nai, Dong Thap, Gia Lai, Ha Giang, Hai
Duong, Ha Nam, Ha Tay, Ha Tinh, Hau Giang, Hoa Binh,
Hung Yen, Khanh Hoa, Kien Giang, Kon Tum, Lai Chau,
Lam Dong, Lang Son, Lao Cai, Long An, Nam Dinh,
Nghe An, Ninh Binh, Ninh Thuan, Phu Tho, Phu Yen,
Quang Binh, Quang Nam, Quang Ngai, Quang Ninh,
Quang Tri, Soc Trang, Son La, Tay Ninh, Thai Binh, Thai
Nguyen, Thanh Hoa, Thua Thien-Hue, Tien Giang, Tra
Vinh, Tuyen Quang, Vinh Long, Vinh Phuc, Yen Bai;
municipalities: Can Tho, Da Nang, Hai Phong, Hanoi, Ho
Chi Minh
Exports: $23.72 billion f.o.b. (2004 est.)
Imports: $26.31 billion f.o.b. (2004 est.)
Currency: Dong (VND)
Exchange rates: dong per US dollar 15,874 (july 2005), 15,787 (2004),
15,279.5 (2003), 15,279.5 (2002), 14,725.2 (2001),
14,167.7 (2000).
Source: CIA the world fact book, 2005
BIOGRAPHY
Hoang Thi Bao Thoa was born on November 9, 1979 in Trung Hung, Yen My
District, Hung Yen Province, Vietnam.
She received her degree of Bachelor of International Business at Vietnam
University of Commerce in 2001. She also holds a cetificate of Marketing and
Merchandising in Apparel industry from Pearl Academy of Garment and Fashion Desi
gn,
New Dehli, India and a cetificate of Marketing and Merchandising in Apparel indu
stry
from International Garment Training Center, Indonesia and other cetificates of s
hort
courses from Vietnam and overseas.
She worked for Import-Export Department of Hanoi Equipment Company as a
marketing representative from June 2001 to November 2001.
She has been working for Hung Yen University of Technical Education as an
officer of Foreign Project Department. She has been a lecturer of Economics in G
arment
Technology and Fashion Design Department since November 2001.
She received a scholarship from Thailand International Development Cooperation
(TICA), Ministry of Foreign Affair, Kingdom of Thailand for her MBA at Universit
y of
Thai Chamber of Commerce, Bangkok, Thailand.