Vietnam is all set to join hands with Thailand in the field of textiles, design and administration. Vietnam has the skills and potential to become an apparel production hub for international buyers; however it lacks upstream and midstream channels. On the other hand, the textile and garment industry of Thailand has a complete supply chain cycle from upstream to downstream, from yarn manufacturing to apparel manufacturing. Setting a fully vertical integrated supply chain between Thailand and Vietnam will, therefore, help both the countries sustain their competitiveness.
Last year, the trade turnover between the two countries totaled 10 billion dollars, a year-on-year increase of 12.5 per cent. Also, Vietnam earned 76 million dollars from yarn exports to Thailand and spent 194 million dollars on importing fabric from the country.
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The co-operation of the two countries would also help the textile and garment industry better exploit the Asean market of 600 million people, when the Asean Economic Community becomes effective by the end of this year.
With the costs increasing significantly in China, as well as competitiveness with other industries, many garment and textile producers have shifted their production base to Asean countries, including Vietnam. The country has signed a number of free trade agreements. Thai enterprises want to enhance co-operation with Vietnamese firms to produce fabric and materials in Vietnam so as to take advantages of benefits brought from trade agreements.
