Hanoi, September 30, 2015 - The Bank for Investment and Development of Vietnam JSC coordinated with Vietnam National Textile Garment Group (Vinatex) to hold the seminar titled “Textile and Garment – Opportunities and challenges amid integration”. Experts, researchers, managers, policy-makers from Ministry of Trade, Ministry of Finance, the State Bank of Vietnam, Vietnam Textile and Apparel Association and representatives from business in garments and textiles were in attendance.

 

​BIDV has big traditional customers in the fields of garments and textiles. BIDV operations in this industry improved significantly. In the TOP 50 leading enterprises of textile exports, BIDV’s credit market share ranked second. The bank’s outstanding loans for the textile industry as of end-2014 reached VND7,168 billion, up 44.5% compared with 2013, the highest growth rate compared to other industries with high export volume such as fisheries, timber, natural rubber.

Recognizing the potential for development of the textile industry in the context of integration, BIDV has classified this industry into key group to increase market share. The bank reduced lending rate, streamlined approval procedures to support customers in their production and business activities, thereby increasing the bank’s outstanding loans to customers and use of the bank’s services. Currently, BIDV provides a full range of products and services to textile businesses including credit products, trade finance, international payments, forex trading, derivatives, payment, cash management, e-banking, to name a few.

BIDV is not only the leading bank that provides credit to businesses operating in the textile and garment industry but also actively provides consultancy, gives master and long term solutions in order to solve problems and develop financial strategy for the development of the textile industry in the context of integration.

Addressing the seminar, Mr. Tran Bac Ha, BIDV Chairman, analyzed and evaluated impacts of free trade agreements (FTAs) on Vietnam economy as well as the textiles and garments industry. Mr. Ha said joining FTAs will help Vietnamese garment products enjoy export tax incentives, thus increasing the competitive capacity of Vietnamese products on international markets. There will also be more opportunities for local firms to increase investment capital, capture more local market share, and restructure business towards international standards, enhance competitive capacity and ensure sustainable development.

Currently, enterprises, mostly FDI ones started to seek for chance to invest in production of source materials such as fabric, weaving and dyeing. If local firms do not actively seize the opportunities, they may gradually lose their advantages even in their local market.

At the seminar, representatives from textiles and garments enterprises agreed that besides the opportunities, new challenges also exist. Weak competitive capacity is the first challenge. Most of Vietnamese garment businesses are of small and medium size while foreign rivals have better management capacity and scale, leading to severe competition in the industry. Besides, new outside barriers due to integration impact such as: requirements to improve production capacity to meet quality, environment and labor safety standards; requirements to establish and maintain a local favorable investment environment; create a stable source of materials; requirements to improve laborers capacity and qualification as well as the infrastructure issues such as environment treatment, traffic systems, transportation and logistics services, trade, finance, etc.

The seminar is an important step for the up-coming programs and activities of the textile and garment industry to develop practical and efficient solutions to its development in the context of integration.

 

For more information, please contact:

Branding and Public Relations

The Bank for Investment and Development of Vietnam JSC (BIDV)

Tel: (+84)4. 22205256; Fax: (+84)4. 22225316

Hotline: 19009247

Website: www.bidv.com.vn