OBM, ODM modes considered for Vietnam’s textile and productionVietNamNet Bridge - Foreign-invested enterprises have organized production according to the OBM mode (original brand manufacturer), in which they undertake all important phases of the production chain, from design and production to distribution. Analysts said if Vietnamese enterprises followed the ODM (original design manufacturer) and OBM modes, they would be able to increase the profit margin by 30-40 percent or even 100 percent. Experts commented that in order to enhance Vietnam’s position in the global value chain, Vietnamese enterprises have no other choice than to change the production method. According to the Vietnam Textile & Apparel Association (Vitas), 70 percent of enterprises are still following OEM and 20 percent follow FOB. Vietnamese enterprises need to take the initiative in building a supply chain with emphasis on input material supply.


Source:   VietNamNet News
March 31, 2018 05:26 UTC