Over 4 months after the signing of the Memorandum of Understanding (MOU) between Vinatex and Coats Group on the production of flame-retardant fabrics and garments, Vinatex has well prepared for production, while Coats has actively promoted the market to export the first shipments in 2024. This can be seen as a new step in production, moving away from the increasingly competitive traditional textile garment manufacturing sector and expanding opportunities in niche markets.

Preparations for Production

In March 2024, Vinatex and Coats Group (UK) signed an MOU on the production of flame-retardant fabrics and garments. To prepare for the project, Vinatex has actively invested in infrastructure, equipment, and personnel, while Coats has sent experts from India to Vietnam to guide and transfer technology and production processes.

Mr. Pham Xuan Trinh, CEO of Vinatex, stated that flame-retardant fabric is a key product in Coats Group’s development strategy for the next five years. Therefore, Coats has thoroughly prepared in terms of research and product development, leveraging the advantages of this product, which Coats has already implemented in Mexico and India. For Vinatex, the company has been consistently focusing on developing based on strengths in the supply chain from spinning, weaving, and dyeing, to sewing to meet the needs of global customers. This cooperation is based on the strengths of both parties, as well as the scale and potential of the market. Additionally, the preparation for producing this “special” product includes numerous principles and regulations such as market, personnel, factory, and technology requirements. Vinatex has now fully prepared resources to work with Coats, receive information, transfer technology, and produce samples. Essentially, some sample products have met the technical requirements set by Coats.

“However, we have encountered some initial challenges due to the use of special chemicals, different from regular chemical suppliers. Some chemical product labels require 1-2 months to order and deliver to Vietnam. These chemicals need to meet global standards for chemical residues and prohibited chemicals for flame-retardant fabrics. Even if certain chemicals can be used, if they contain components listed as banned for flame-retardant fabrics, they cannot be used. All chemical and dye suppliers must be ‘evaluated’ to meet the requirements from Coats before Vinatex signs contracts to bring them into production. In terms of fibers, Coats currently supplies part of them, and they also introduce reputable suppliers evaluated according to global standards, especially premium cotton such as Egyptian cotton, and Pima cotton. Under the MOU, the manufacturer must ensure and be responsible to the consumer, making this a ‘key’ criterion that Vinatex must adhere to in long-term production, through careful selection of raw materials, chemicals, and dyes,” Mr. Pham Xuan Trinh said.

Mastering Technology and Production Processes

Mr. Nguyen Xuan Vu, Deputy General Director of Natexco, shared that when being selected as the production unit for the new product line, Natexco’s leadership extensively informed all employees about this project, recognizing it not only as a political task but also as an opportunity to transform in many aspects, such as production foundation and long-term business efficiency. Additionally, this is an opportunity for Natexco to enhance the supply chain, providing a complete product chain under Natexco’s brand.

According to a survey conducted by Coats’ expert team, Natexco meets over 90% of the requirements for equipment, and production conditions. However, there are still some requirements for equipment investment. The company’s leadership sought guidance from Vinatex on investment policies and received support from the group regarding both policies and implementation methods. Additionally, assessments on fire prevention, signage, pathways, exits, and policies for workers need to be completed according to Coats’ requirements.

“During the preparation, Natexco conducted trial production (from the weaving stage) using flame-retardant yarn provided by Coats to evaluate and adjust parameters and control the technology. The weaving process met the technical specifications, and Coats’ experts highly appreciated the skills of Natexco’s workers in the sewing stage. However, the finishing process needed some adjustments. After re-production, even when the woven fabric met the requirements, we still re-wove to meet the high technical specifications and fabric structure in terms of warp density, weft density, and shrinkage… For the dyeing and finishing stage, color parameters needed adjustment. By the end of July, two new fabric samples had met the technical requirements with correct color on the first trial. In a short time frame with the support from Vinatex’s leadership, the project team, and the collective effort of Natexco’s staff, we have enabled control of the technology from weaving to dyeing and sewing. In August, Coats’ experts visited Vietnam for two weeks to continue implementing the yarn spinning stage, aiming to produce the first batches by August” emphasized Natexco’s Deputy General Director.

Broad Market Potential

Vinatex’s CEO mentioned that in early August 2024, the partner designated by Coats evaluated the infrastructure, production capacity, working conditions for workers, and other policies at the manufacturer. As a result, Vinatex scored 92 points, a relatively high score for a first-time evaluation of a new product produced Sicbo Tài Xỉu Sảnh Rồng - Tải game trực tuyến để kiếm tiền thật . With some lack of equipment for the finishing stage, Vinatex will immediately invest to meet the technical requirements of the U.S. and EU markets. During the evaluation process, Vinatex also promptly understood the concerns of workers and made timely adjustments. Most workers are satisfied with the improved working environment, enhanced labor risk prevention measures, improved working conditions, and welfare aiming to create a green environment and green factories throughout the supply chain.

“In August and September, we will produce orders worth approximately $500,000 for some customers to try the products. This is a crucial step in evaluating the market and customer satisfaction with the product before officially launching it and receiving subsequent orders. These are specialized products with high technical characteristics that meet the strictest standards of the U.S. and Europe, not traditional products. Therefore, if major brands well accept these products, the market potential will certainly be possible. In addition, we will provide the market with two main products: flame-retardant fabric made from flame-retardant materials (fibers, flame-retardant yarn) and flame-retardant fabric made from conventional materials (cotton, fiber) coated with flame-retardant chemicals. Both products meet the highest technical standards for these special fabrics. However, the product made from flame-retardant materials will be more expensive, while the product coated with flame-retardant chemicals will lose its technical characteristics (after about 30-60 washes), depending on the type of cotton or TC. For the domestic market, Vinatex and Coats expect to offer products made in Vietnam to current partners who are importing flame-retardant fabrics. The goal is to supply locally, replacing brands currently supplying FOB production in Vietnam for some specialized industries. Additionally, we plan to build a PR program about the quality level of the fabric in line with the two Vinatex’s strategic products, depending on the needs of each customer,” noted Mr. Pham Xuan Trinh.

Recently, Mr. Le Tien Truong, Chairman of the Board of Directors of Vinatex, inspected the preparation for the system evaluation of the flame-retardant fabric project in collaboration with Coats Group. Mr. Chairman said, “The current status of the factory, including both the internal organization and exterior landscape, has completely transformed compared to six months ago when the Group’s inspection team visited. In just over four months since the official signing of the MOU with Coats Group, a significant amount of tasks has been completed.”

The Chairman highly appreciated the achievements of the flame-retardant fabric project and the effort of the project management team, especially Natexco in organizing and operating the project in recent months. The preliminary evaluation results are very promising, and the Chairman offered the project management team to continue addressing the recommendations from the experts, aiming to achieve over 80 points in the official evaluation. The project is on the right way, with the operational system running smoothly and efficiently. The Chairman also tasked the project management team with ensuring the completion of the order production in the final months of 2024 as committed to the partner, while also reviewing personnel needs, investing in equipment for production, and proactively addressing any other issues.