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Digital Transformation: Challenges for the Textile Industry
Saturday_23/4/2022 Chuyên mục: Textiles and Garments

80% of enterprises in Vietnam are small and medium-sized because of limited financial resources and lack of high-quality human resources. Therefore, enterprises do not know where to start to transform digitally to suit their capacity.

​​The most spoken phrase in the textile industry today is digital transformation. In this regard, Mr. Le Tien Truong, Chairman of the Board of Vietnam Textile and Clothing Group (Vinatex), asked: Why is the same order, but there are businesses that do it with lower production costs but still bring high added value and in reverse? The reason is the production technology that enterprises are using. Digital transformation is imperative for manufacturing enterprises, especially for export-oriented industries. However, for most Vietnamese textile and garment enterprises, changing production technology is not easy.

Ms. Nguyen Thi Tuyet Mai, Deputy General Secretary of the Vietnam Textile and Clothing Association (VITAS), stated that the use of new technologies and digital transformation in production and administration is an unavoidable trend that will assist textile and clothing enterprises in quickly recovering from Covid-19 and gradually moving up the global supply chain. Enterprises will fall behind in production, lose competitiveness, and may even be forced out of the market if they do not implement digital transformation in a timely manner. The issue of advanced technology investment capital, on the other hand, is a difficult "challenge."


In order to make the digital transformation process, there are many difficulties. In particular, the most difficult is the capital to invest in digital technology solutions, implementing and maintaining technology because the cost is very high, and the efficiency in production activities is not evident in a short time. In addition, difficulties in changing habits, production practices, long-standing business; lack of specialists and lack of highly specialized human resources to apply digital technology make the possibility of success in digital transformation even lower...

In order to make a successful digital transformation, Ms. Nguyen Thi Tuyet Mai said that, right from the inside, business leaders must be willing to change, improve the production process, invest in technology, machinery, modern equipment, continuously improve skills and workmanship for employees.

From the perspective of someone with experience in information technology, Mr. Tran Tinh Minh Tri - Software Solutions Engineer, SAP Vietnam, analyzes: Digital transformation is not the solution to all problems. Each different business model will have a suitable digital transformation cycle. As a result, it is vital to prioritize customer focus, operate the business system in a flexible and efficient manner, and swiftly develop a supply chain value system in order to choose a B2B or B2C business model... Because Vietnam is at the start of the production chain, automation should be a top priority. Furthermore, gaining a better understanding of client preferences, improving customer service, and developing new business models will generate additional cash flow for corporate operations.

Vinatex leaders emphasized that training to increase qualifications, skills, workmanship, especially knowledge connected to information technology, automation, design, and so on, should be concentrated based on the actual process of genuine digital transformation of organizations. "It is necessary to make digital transformations, invest in technology, and construct a decent production management system in order to boost labor productivity, reduce the unit price of labor on a product while still ensuring high labor standards." "For a long time, digital transformation will assist the garment sector overcome the problem of labor shortage by creating opportunities to break through, escape from labor-intensive situations with low and uncertain salaries," stated Vinatex's CEO.

Author: General editorial board