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Garment firms join forces to trim costs
In a bid to cut costs, textile and garment enterprises are jointly opening retail outlets.
Gia Dinh Textile and Garment Corporation (Giditex) and Sai Gon 2 Garment Joint Stock Company, which own the Gidini and Sanding brands, plan to open several outlets in HCM City.
"This is the first time the two companies have joined forces," said Le Dong Trieu, General Director of Giditex.
He also said Giditex was also planning to join forces with other garment makers such as Nha Be, Phong Phu Corporation and Sai Gon Garment Manufacturing Trade Joint Stock Company (Garmex Sai Gon).
Nguyen Huu Toan, director of Sai Gon 2 Garment Joint Stock Company, said his firm also planned to open joint retail outlets around the country.
Viet Nam National Textile and Garment Corporation (Vinatex) is planning to hook up with the Sai Gon 2 Garment Joint Stock Company.
Le Tien Truong, Vinatex Deputy General Director, said co-operation was essential in an increasingly competitive market place.
"Rentals range from US$800 to $3,000 a month, which eats into enterprises profits," said Duong Thi Ngoc Dung, General Director of Nha Be Garment Company.
Local firms are having to cope with stiff competition, mainly from China, Thailand and South Korea following the signing of the ASEAN-China Free Trade Area (ACFTA), which took effect on January 1.
Competition will be even greater when Laos, Cambodia and Myanmar join the ACFTA in 2015.
vietnamnews
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