Garment sector increases home made materials

A few businesses investing in the textile and dye sector, which has received preferential policies and has a high added-value, are finding it difficult to meet domestic demands.

According to the Vietnam Textile and Apparel Association (VITAS), domestic textile companies are only capable of supplying between 30-50 percent of the country’s demand for shirts, jeans and other basic products production.

The Vietnam National Textile and Garment Group (Vinatex) said that it has come up with nearly 20 key textile and dye projects over the past five years to attract domestic and foreign investments but failed.

The group is striving to produce more materials domestically by building the Dinh Vu fibres plant in the northern port city of Hai Phong, which is expected to meet 70 percent of the sector’s demand.

The Ministry of Industry and Trade has devised a scheme to develop garment and textile materials input areas. A dying zone will also be set up in the Nhon Trach district of Dong Nai province between now and 2015.

In addition, two large materials production centres will be built in HCM City and five key textile and dye projects in a number of other localities will be upgraded to turn out 45 million m2 of cloth by the end of this year.

The total area for growing cotton is also being extended to around 15,600 ha by the end of this year, 6,600 ha more than last year’s crop.

According to Vitas, Vietnam is now one of the world’s largest textile and garment exporters and textiles and garments also record the highest export growth among the country’s 10 staples.

The country’s textile and garment exports fetched around US$3.8 billion 0in the first five months of the year, a year-on-year increase of more than 17 percent and this year’s export figure is expected to reach US$10.5 billion, a year-on-year rise of 15 percent, said Vitas.

The sector is focusing on Asian markets, because of the pricing advantage when compared with Eastern European, Central and South American countries.

VNA

Tags: Vietnam garment exports, Vietnam Garment industry, Vietnam textile industry