Garment sector strives to use domestic raw materials

A number of businesses investing in the textiles 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 Viet Nam Textile and Apparel Association (VITAS), domestic textile companies only have the capacity to supply between 30-50 per cent of the country’s demand for shirts, jeans and other basic textile products. Production of vests, jackets and other high-quality clothes is primarily dependent on imported materials.

The Viet Nam 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 all failed.

The group is making efforts to produce more material domestically, including building the Dinh Vu fibre plant in the northern port city of Hai Phong.

The plant is expected to meet 70 per cent of the sector’s demand once it becomes operational in 2011.

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

In addition, two large material 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 sq.m of cloth by the end of this year.

The acreage for growing cotton will also be increased. The country’s total cotton growing area is expected to reach around 15,600ha by the end of this year, 6,600ha more than last year.

According to VITAS, Viet Nam is currently 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.

Textile and garment exports fetched around US$3.8 billion in the first five months of the year, a year-on-year increase of more than 17 per cent. This year’s export figure is expected to reach $10.5 billion, a year-on-year increase of 15 per cent, said VITAS.

The sector is focusing on Asian markets due to the pricing advantage when compared with Eastern European, and Central and South American countries. — VNS

Tags: Vietnam Garment industry, Vietnam raw materials