t vietnam june 5 th 2017 - · pdf filevietnam textile and apparel industry 40 12 10 7 ......
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T E X T I L E A N D A P PA R E L O U T S O U R C I N G O P P O R T U N I T Y I N
V I E T N A M
J u n e 5 t h 2 0 1 7
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Country name: Socialistic Republic of Vietnam
Capital : Hanoi
Area : 331,210 km2
Coast Line: Extending 1650 km north to south
Government : Socialist party of Vietnam (President : Tran Dai Quang)
Legal system : based on communist legal theory and French civil law
Currency: Vietnamese Dong (22 300 dong ≈ 1 USD )
Neighbor countries: China, Laos and Cambodia
Population 91.7 million
Age structureBelow 14 : 25%Below 64 : 69%
65 and over = 5,5%
Language Vietnamese.
Main religion Buddhism, Christians
Most populated city HCMC : 7,818,000
Urban population 32%
Annual population growth rate
1,2%
Death rate 6,0 / 1000
Literacy 94%
Sources: CIA Factbook
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HanoiPopulation: 7 millionPolitical Capital
Ho Chi Minh CityPopulation: 11 millionEconomic Capital
• Strategic location in the heart of Asia
• 95M + population
• Golden population structure
• 40 % population in the 15-24 age bracket
• Skilled workforce
• Continuous economic growth coupled to low inflation
• Unique political stability
• FDI welcoming country
• US Dollar based economy
• Free trade agreement with European Union and
Russia, member of WTO and ASEAN
WHY VIETNAM
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POPULATION
5,5 Million people
96 Million people
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VIETNAM ECONOMIC INDICATORS
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
Malaysia Thailand Phillipines Indonesia Vietnam
GDP/capita – 2016USD
0
5
10
15
20
25
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
Inflation rate - %
0
1
2
3
4
5
6
7
8
2012 2013 2014 2015 2016
GDP growth per year - %
Source: World bank
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WAGE COMPARISON
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EMERGING MANUFACTURING INDUSTRIES
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• Average year-to-year growth of 15 % since 2001• The industry represents 15 % of Vietnam´s GDP• 2016 exports: USD 27.2 billion• Major export product: Jackets, shirts, pants• The industry has benefited from increasing foreign direct
investment over the years.
VIETNAM TEXTILE AND APPAREL INDUSTRY
40
1210
7.8
30
0
5
10
15
20
25
30
35
40
45
USA EU Japan Korea Other
EXPORT COUNTRIES - %
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AROUND 6,000 TEXTILE AND APPAREL ENTERPRISES
MORE THAN 2.5 MILLION WORKERS
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6000 apparel and textile factories
84% are privately owned15% are foreign direct investment companies1% are state owned
85% are CMT factories15% are FOB factories
VIETNAMESE FACTORIES
62% of factories located in South
6% of factories located in Center
30 % of factories located in North
72%
6%
18%
4%
TYPE OF COMPANIES
Sewing Spinning Weaving-Knitting Dyieng
1,6
50
KM
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• When it comes to textile and apparel manufacturing,
Vietnam is an excellent choice combining affordability,
competency and flexibility
• In fact, several Chinese factories are now relocating part or
totality of their textile-apparel production facilities to
Vietnam
• Minimum batches and order quantities are way more
flexible than in neighbor countries
• Advantage for SMEs placing smaller orders
• Vietnam has a big advantage in non fully automatized
apparels production requiring manual work.
MORE AFFORDABLE, MORE FLEXIBLE
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• 2,5 million textile and apparel worker in total
• Young and stable workforce base
• Vietnamese workforce is great in the higher-end apparel
segment
• They adapt quickly to western standards
• Reliable and hard working
• The government and private stakeholders are working hard
on further upskilling the textile and apparel workforce
QUALIFIED WORKFORCE
60%
40%
WORKFORCE BY GENDER
Women Men
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• The European Union and Vietnam reached an agreement on
the EU-Vietnam Free trade agreement resulting in the first
FTA of its kind between the EU and a developing country.
• Under the FTA, all import tariffs of textile fabrics from
Vietnam into the EU are reduced to zero at entry
• Other Vietnamese textile products into the EU will be
reduced to zero over seven years.
• Trade deals come to effect in 2018
EU-VIETNAM FREE TRADE AGREEMENT
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• Vietnam is member of the Eurasian Economic Union trade
agreement along Russia, Belarus, Kazakhstan, Armenia and
Kyrgyzstan.
• The VN-EAEU agreement took effect in October 2016
• Under the agreement, 90 per cent of tariff lines have been
cut or reduced. Of that amount, 59 per cent of tariff lines
were removed right after the agreement took effect
• In the apparel and textile sector, import tariffs are cut from
10 to 0%.
• Vietnam currently exports about $320 million worth of
apparel each year to Russia. Thanks to the agreement, this
figure is believed to reach $ 1 billion within next years
VN - EAEU FREE TRADE AGREEMENT
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TEXTILE AND APPAREL EXPORT VALUE BY 2025
US$ 55 BILLION
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Affordable
Vietnam is one of Asian cheapest manufacturing center
More complex product
If your production requires human labor and cannot be fully automatized, Vietnam is the place to be.
An Asian hub Abundance of competent workforce
Vietnam is quickly improving its infrastructure, making it a more attractive outsourcing destination for Western and even Chinese companies..
Flexibility
Batches and minimum order quantities are lower than in neighbor countries and adapted to SMEs needs.
No scandals
Vietnam is strict regarding workers condition and children labor
6 REASONS
TO OUTSOURCE TEXTILE AND APPAREL IN VIETNAM
Vietnamese clothing workers are well experienced and quality control works in factories.
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Your SUCCESS story in Vietnam
Local presence
Turnkey solutions to host and manage your local staff and provide working premises, including HR and
payroll services.
IPO
We can operate as your IPO, handling all your orders from negotiations through sampling, production orders QC and
delivery survey up to packing of containers.
Partner Search
Search, benchmark and select your outsourcing Partners to be visited jointly
Sourcing
Sourcing of your standard apparels such as socks, shirts, jeans etc.
Nordesk offers a large range of services for Finnish apparel companies in Vietnam
OUR SERVICES
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Robert KarjalainenMarketing and branding
Robert graduated with both a Master degree in international business and an MBA in E-
Business in Paris. He has since then been running a successful business in the
audiovisual industry in Nice (France). In 2014 he set up an import-export company
trading FMCG goods between Northern Europe and Vietnam.
He successfully established Kiss Cider (Carlsberg group) as a leading Cider brand in the
Vietnamese retail market with more than 350 salespoint accross the country.
Robert is specialized in the Vietnamese retail, consumer market and FMCG industry..
Robert is in charge of marketing, communication and business development strategy at
Nordesk.
Area of expertise
• French
• Finnish
• English
• Marketing strategies
• Business development
• Branding
Languages
• Consumer market
• Retail
• FMCG
• Market research
• Consumer behavior
• B2B Marketing
Skills
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Claudio KarjalainenBusiness consulting
Claudio is Head of Regional Operations for FinnSEA & Nordesk in Vietnam, his role is to
coordinate and ensure successful implementation and completion of consulting cases.
He has been living in Vietnam since 2012 and prior to FinnSEA, Claudio worked as
Business Development Executive for an Insurance advisory firm, he has also successfully
launched a Cider brand In Vietnam and has co-founded a non-profit accelerator to
support Vietnamese startups.
Claudio is graduated with a Master of Finance, his keen understanding of International
companies’ needs, local market offering and a wide network have been drivers of
successful implementation of cases for SME’s and larger corporations.
Area of expertise
• French
• Finnish
• English
• International Business
• Business Strategy
• Sales Channel Development
Languages
• Mechanical engineering
• Cleantech
• Consumer goods
• Market research & Analysis
• Partner Search
• Sales Management
Skills
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Pietro KarjalainenFounder and CEO
Pietro has over 30 years’ experience in international business such as electronics sales,
marketing and management functions. Since 2008, he has been specializing in Asian
region, spending 4 years in Vietnam as Finpro Country Manager, running a team of 5
people specializing in Finnish market entries to Vietnam.
He has also gathered knowledge and networks from neighboring countries and other
Asian regions. He has been working in Asia as well with major Finnish companies as
SME's and Start-Ups.
Area of expertise
• French
• Finnish
• English
• Market entry
• Sales operations
• Management
Languages
• Manufacturing
• Outsourcing
• Startups
• Market analysis
• Financing
• Sales channel development
Skills
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Kaija KeijolaSenior Sales Consultant
Kaija has served in management positions in international IT companies in the business
development, sales and supply organizations over 30 years. In addition, she has worked
as an independent consultant in the UK and Finland.
Kaija is you contact point in Finland, may you have any urgent questions feel free to
contact her.
Area of expertise
• Finnish
• English
• Swedish
• Business Development
• Supply chain
• Management
Languages
• Information Technology
• Management consulting
• CRM
• Customer Service
• New Business Development
• Outsourcing
Skills
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Trinh TranJunior analyst
Trinh is a talented analyst working at Nordesk since 2016, she is in charge of searching
for primary and secondary data about your industry in Vietnam.
Trinh understands your business, your needs and aspiration in the Vietnamese market.
She will dig the data you need to help you take the appropriate decision regarding your
project in Vietnam.
Since she joined Nordesk, Trinh has been working with Finnish customers from various
industries, giving her the ability to quickly assess the specificities of your business.
Main areas
• Vietnamese
• English
• Market research
• Data collection
• Critical thinking
Languages
• Construction
• Food and Beverage
• Machinery
• Market analysis
• Interpretation
• Surveing
Skills
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Address detail
CirCO Co-Working space384 Hoang Dieu, District 4Ho Chi Minh City, Vietnam+84 903 023 212
A FRESH APPROACH TO BUSINESS SERVICES
CONTACT IN EUROPE :Kaija Keijola+358 40 542 [email protected]
CONTACT IN ASIA :Claudio Karjalainen+84 903 023 [email protected]