Ho Chi Minh City, 28 February 2006 — A new institution opened its doors today in Ho Chi Minh City to help Vietnam’s garment industry thrive in an increasingly competitive global market. The International Garment and Textile Training Center (IGTC) will strive to improve the capacity of garment industry managers in four crucial areas: production management; marketing & merchandising; human resources management; and compliance with international standards of corporate social responsibility.
IGTC is a joint venture set up by 13 Ho Chi Minh City garment manufacturers and one equipment supplier, with assistance from the Mekong Private Sector Development Facility, a multi-donor initiative of the International Finance Corporation, which has pledged three years of technical assistance to IGTC. Also funding technical assistance for the Center are New Zealand's International Aid and Development Agency (NZAID) and Danish International Development Assistance (DANIDA).
Speaking at the opening today, Mr. Le Quoc An, Chairman of the Vietnam National Textile and Garment Corporation and the Vietnam Textile and Apparel Association, stated that upgrading garment industry technology and skills is crucial. “Vietnam will join the World Trade Organization soon and to take advantage of the opportunities, we need to develop the labor force and especially industry managers.” Mr. An praised IGTC’s partners for establishing Vietnam’s first center for industry excellence, and doing so for the whole industry.
IGTC’s Chairman and Deputy Chairman of the garment, textile, embroidery and knitting association (AGTEK), Mr. Diep Thanh Kiet, stated that the Center will strive to provide world-class training courses in the latest garment industry technology and management practices. “With much stronger competition world-wide, and especially from China, garment buyers are now demanding more and better services from producers. These include: shorter lead times for delivery; product innovation; price competitiveness; consistent quality; and reliable delivery. Experts say that if the industry does not upgrade, we will lose customers to more competitive countries.”
IGTC will also train garment industry managers to ensure compliance with international labor, health and safety standards. As a result of consumer boycotts in developed countries, buyers and retailers want assurance that the factories producing for them have good labor, environmental and social practices. Factory owners are now recognizing that having good labor practices reduces labor disputes, and fairly-treated workers are more productive workers.
The garment industry is Vietnam’s second largest. In 2005, garment and textile exports were worth US$ 4.84 billion, and by 2010 the government expects industry earnings to be US$ 8-9 billion. The industry is also a leading employer, with more than two million workers, most of whom are women.
