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Textile sector stitches big targets together
Vietnam is set to double its textile and apparel export turnover by 2015. The Vietnam Textile and Apparel Development Plan to 2015 and Orientation to 2020, which was approved by the Ministry of Industry and Trade (MoIT) in late November.
MOIT set a target of increasing the sector’s export earnings to $18 billion by 2015 and $25 billion by 2020, two times and nearly three times higher respectively than this year’s estimated figure of around $9.1 billion. The annual export growth rate has been set at 20 per cent for 2008-2010 and 15 per cent for 2011-2020.
At present, Vietnam is the world’s ninth largest textile and apparel exporter. Phan Chi Dung, director of the MoIT’s Light Industry Department, said Vietnam would be among the top five by 2015. “The textile and apparel sector will be a key industry as well as a spearhead export item of Vietnam,” said Dung.
Vietnam Textile and Garment Group (Vinatex) deputy director general Le Tien Truong said the plan would deal with the sector’s major weaknesses including its dependence on imported materials and a lack of trained employees.
“We will attach great importance to the sector’s production of cloth, other related materials and accessories,” said Truong, adding that only by increasing local content, could the industry earn more from business value chains. He said the industry’s localisation ratio now stood at 35 per cent and would be raised to 50 per cent by 2010, 60 per cent by 2015 and 70 per cent by 2020.
He said the MoIT, in late November, approved the Cloth Investment and Production Programme for exports to 2015. Accordingly, Vietnam would produce one million square metres of cloth by 2010 and 1.5 million square metres by 2015. The country would establish 10 weaving and dyeing industrial complexes throughout the country, like similar plants in Thai Binh, Ninh Binh, Nghe An, Khanh Hoa, Binh Thuan and Long An provinces from 2008-2012 and in Ha Tinh, Quang Tri, Tien Giang and Tra Vinh provinces from 2012-2015.
The country would also complete five key weaving and dyeing projects from 2007-2012 including the Teachang-Vina dyeing plant, a joint venture between Vinatex, Thien Nam Company and South Korea’s Teachang with annual dyeing capacity of 63 million square metres of cloth, a joint venture between Vinatex and the United States’ ITG with an annual dyeing capacity of 76 million square metres by 2010 and Binh An dyeing plant between Viet Thang dyeing plant and the Netherlands’ Tencate with annual capacity of 45 million square metres by 2010.
“We will invest $2.57 billion in the programme from 2008-2015 and about 95 per cent of this amount will be used for the establishment of the weaving and dyeing industrial complexes and dyeing projects,” said Truong. He said 20-30 per cent of the investment capital would come from Vinatex and other partners.
There are around 2,000 textile and apparel enterprises in the country, providing jobs for more than two million workers. According to the programme, the sector will focus on increasing the number of professional fashion designers and skilled workers and will establish a textile, apparel and fashion university.
Last year, the sector’s export turnover reached more than $7.8 billion, increasing by 32 per cent compared to 2006 and is expected to hit $9.1 billion this year, up 17 per cent.
VIR
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