Continuing to invest in expanding factories

As soon as the CPTPP was signed, the Bac Giang Garment Joint Stock Company (BGG) has built two more factories in Phi Mo and Nghia Hoa communes (Lang Giang district). 

Production line of Bac Giang LGG Garment Joint Stock Company (Lang Giang district).

Nguyen Huu Phai, Chairman of the company’s Board of Directors, said: “We have invested in modern sewing lines and used automatic cutting and sewing machines up to technology 4.0. Currently, factory construction and machinery installation have been basically completed. The company now needs to employ about 2,000 workers as the new factories will begin operation at the end of the first quarter of 2019". 

Similarly, the Bac Giang LGG Garment Joint Stock Company (Lang Giang district) also plans to expand its production workshops in Nghia Hoa commune (Lang Giang) and Xuong Giang ward (Bac Giang city), and recruit 2,000 more workers to meet new orders.

With a motto that each commune has a garment factory and production lines are brought to the hands of workers, the Tin Hung Garment Joint Stock Company (Bac Giang city) is investing tens of billions of VND in 10 garment workshops in Bac Giang city and Yen Dung, Lang Giang, Hiep Hoa, Yen The and Luc Nam districts, which will employ more than 1,000 workers. 

Truong Viet Cong, Chairman of the company’s Board of Directors, said that re-renting production sites of other units and dividing production lines into rural areas will help the company save time to complete investment procedures. In addition, garment workshops built in these areas also help attract on-site labor so that businesses can early stabilize production to meet export orders.

Since 2018, the province has attracted 75 new projects and allowed nearly 150 other projects to adjust investment capital. The newly licensed and adjusted projects are mainly in the garment industry, support industries and sectors that benefit from the reduction of import and export taxes. This is considered an advantage to seize new opportunities brought by the CPTPP.

Intensive and extensive integration

Not only investing and expanding production workshops, but businesses have also focused on taking care of the lives of workers and improving their income. Nguyen Thi Thu Huong, head of the Import and Export Department (Bac Giang LGG Garment Joint Stock Company), said that before signing contracts to supply products, partner companies require an independent third party to assess factory capacity. 

New factory of Bac Giang Garment Joint Stock Company in Phi Mo commune (Lang Giang district).

Of note, the criteria of the working environment and employees' benefits are always important bases. In response, the company has actively invested in improving the working environment. In addition, the company has also launched a production emulation movement in the year with rewards including valuable gifts, creating an enthusiastic working environment for improved productivity and product quality.

According to Nguyen Cuong, Deputy Director of the provincial Department of Planning and Investment, the CPTPP is a big boost that changes institutions and policies, breaks tariff barriers, and make the legal system suitable to the general development trend of countries. To proactively seize opportunities and expand product consumption in new markets, businesses need to improve productivity and product quality, ensure food hygiene and safety, and prove the origin of goods. 

“In order to help garment enterprises promote their advantages and integrate deeply when participating in the CPTPP, the Department of Planning and Investment is considering selecting a number of potential enterprises to develop textile and dyeing industries and produce garment accessories in the province. The projects will provide input products, helping businesses further increase product values” said Nguyen Cuong.

CPTPP could create 27,000 jobs in Vietnam each year

Joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will help create 17,000-27,000 jobs each year for Vietnamese workers from 2020, Director of the Institute of Labour Science and Social Affairs Dao Quang Vinh has said.

 

CPTPP expected to boost Vietnam’s GDP by 2.01% by 2035

 

 

National Assembly passes resolution approving CPTPP, related documents

The 14th National Assembly passed a resolution approving the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and related documents in the afternoon of November 12 with 96.7 percent of votes. 

 

CPTPP: Opportunities and challenges for Vietnam

  

 

CPTPP to come into force in late 2018

 

 

Thuong Giang