Building a Strong Internal Supply Chain – Centering on Garment as the Key Driver
In the context of international economic integration and the growing trend of sustainable development, Vietnam’s textile and garment industry is undergoing a profound transformation in both mindset and action. As a pioneering enterprise, the Vietnam National Textile and Garment Group (Vinatex) has affirmed its leadership role for over three decades, evolving into one of the country’s key economic groups. With a mission of continuous innovation and industry leadership, Vinatex’s vital strategy in this new development phase is to build a robust internal supply chain, with the garment sector serving as the driving force.
“The Heart” of Vinatex’s Internal Supply Chain
Within Vinatex’s supply chain, the garment sector, with its advantages in scale, outstanding production capacity, and flexibility in meeting market demands, not only generates high-added value but also plays a crucial role in establishing a strong foundation. It leads and drives the synchronized development of related sectors such as yarn, weaving, and dyeing.
Due to its direct access to international markets, the garment sector is instrumental in expanding Vinatex’s global market share. As the final stage of the supply chain, it not only reflects production efficiency but also determines the ultimate value of textile and garment products. In this value chain, the garment industry acts as the key driver, stimulating the growth of the yarn and weaving sectors. This is particularly important as global markets increasingly demand high quality, sustainability, and rapid responsiveness.
The seamless coordination between the garment, yarn, and weaving sectors is the foundation for building a solid internal supply chain. The yarn sector provides raw materials, the weaving sector transforms them into high-quality fabrics, and the garment sector completes the final products for the market. This model optimizes production costs, reduces reliance on imported raw materials, and enhances Vinatex’s self-sufficiency.
With deepening international economic integration, Free Trade Agreements (FTAs) such as the EVFTA, CPTPP, and RCEP offer many opportunities but also impose challenges regarding rules of origin. Establishing a closed-loop internal supply chain centered around the garment sector enables Vinatex to meet stringent origin requirements, maximize tariff benefits, and enhance its competitiveness in global markets. The garment sector is a strategic driver and the “heart” of Vinatex’s internal supply chain. Leading the industry has fostered the growth of the yarn and weaving sectors, forming a sustainable, efficient, and highly competitive value chain in the international market.
However, building a strong internal supply chain requires coordination between the garment, yarn, and weaving sectors. Vinatex has initiated major projects to develop all key links in the value chain, from yarn production and fabric weaving to dyeing and garment finishing. This integration optimizes production costs, minimizes risks, and enhances overall product quality consistency.
Vinatex is progressively establishing a closed-loop supply chain from yarn to weaving, dyeing, and garment manufacturing, with the Vinatex PD&B Center playing a crucial role in realizing this strategy. This center serves as a “strategic bridge” connecting businesses in yarn, weaving, and garment manufacturing, ensuring that all supply chain links operate in sync—from raw material production to final product completion. This optimizes internal resources and enhances production efficiency.
A key mission of the PD&B Center is to research and develop product samples using domestically produced fabrics. By leveraging local raw materials, the center can design products tailored to international market demands while meeting FTA origin requirements. This reduces dependence on imported materials and maximizes tariff benefits under trade agreements, thereby encouraging innovation and research in the yarn and weaving sectors to meet input material requirements.
Alongside the PD&B Center, the Vinatex Garment Production and Business Department is also a key player in shaping the internal supply chain. Tasked with guiding business operations, this department acts as the “driving engine” that propels the entire system forward, ensuring that products meet quality standards and international regulations while increasing export value. The collaboration between the Garment Production and Business Department and the PD&B Center forms a strong synergy, aiming to establish the garment sector as the industry’s driving force, linking with yarn and weaving sectors to create a robust internal supply chain for Vinatex.
Vinatex: Long-Term Vision and Strategic Investment
Looking ahead, with strong investments in technology, innovation, and sustainable development, the garment sector will maintain its central role in the value chain, propelling Vinatex further on the global textile and garment map.
The bright future of Vietnam’s garment industry today is the result of Vinatex’s 30-year journey of relentless development. In its early years, Vinatex focused on building infrastructure, developing human resources, and expanding export markets. This foundational phase laid the groundwork for its later transformation. During this period, the garment sector primarily engaged in export processing with low-value-added orders. However, the experience gained helped Vinatex build a solid foundation for transitioning to more advanced production models.
From its origins as a simple contract manufacturer, Vinatex has evolved into a comprehensive value chain integrating yarn, weaving, and garment production, realizing its vision of “One Destination – A Complete Solution for Textiles and Green Fashion.” Vinatex has increasingly positioned itself as a priority partner for top global manufacturers and distributors, elevating Vietnam’s textile and garment industry on the international stage.
One of the most crucial factors in this journey has been Vinatex’s long-term vision and strategic investment in modern technology to enhance production capacity and product quality. The group has continuously innovated to meet the ever-stringent demands of both domestic and international markets, strengthening its brand and delivering real value to customers and partners.
Additionally, Vinatex places a strong emphasis on human capital. Through continuous training programs, the group equips its workforce with the latest skills, updates on technological trends, and enhanced management capabilities. This has enabled Vinatex to build a professional, highly skilled, and creative workforce, ready to tackle new challenges. Investing in people has been the decisive factor in Vinatex’s remarkable growth.
By fostering a balance between technology and human development, Vinatex has maintained its competitive edge in an industry characterized by constant change and fierce competition. More importantly, with a commitment to sustainable development, Vinatex not only prioritizes profitability but also focuses on environmental protection and social responsibility. This strengthens the group’s brand reputation, creates lasting benefits for the community, and deepens its connection with employees and stakeholders.
The achievements of Vinatex stand as a testament to relentless effort, innovation, and adaptability in the face of industry shifts. With its strategic vision and strong unity across the system, Vinatex not only plays a crucial role in Vietnam’s textile and garment sector but also reaches beyond borders, establishing itself as a globally recognized Vietnamese brand.
Looking to the future, with the garment sector at the forefront and strong coordination across related industries, Vinatex will continue to grow sustainably, achieving new milestones and becoming a symbol of pride for Vietnam’s textile and garment industry.
Article by: Nguyen Duc Tri – Vice General Director of Vinatex