Promoting Cotton Development
Vietnam is expanding the production of materials for the textile-garment sector and the projection is to have 76,000ha of land planted in cotton by 2020. The Prime Minister has approved the cotton development plan to 2015 with an orientation towards 2020 via Decision 29/QD-TTg.
Presently, the planting of cotton in Vietnam remains of small scale. Therefore the production output is not high and not enough to meet the demand for materials of the domestic textile-garment sector. Vietnam has to import most of the materials that are needed for textile-garment production. To reduce material imports and develop the textile-garment sector in a sustainable manner, Vietnam must expand the planting of cotton.
Intensive farming techniques will be applied to increase productivity, improve the quality of products and protect the ecological environment. High-yield cotton plantations in areas where natural conditions are favorable for cotton to grow will be expanded. Irrigation works around cotton plantations will be upgraded to better serve the planting of cotton.
The implementation of the cotton development plan will begin with the restoration of cotton plantations in Dak Lak, Dak Nong and Gia Lai provinces in the Tay Nguyen (Central Highlands) region.
The Vietnam Textile and Garment Group said that Binh Thuan province will invest in the development of 10 cotton farms with total area of 1,300ha; Ninh Thuan province: five farms (2,800ha); Dak Lak province: 10 farms (more than 4,500ha); Gia Lai: 12 farms (3,450ha); and Dak Nong province: seven farms (2,400ha).
To facilitate the planting of cotton, major irrigation projects will be accelerated. Construction of the Phan Ri irrigation work in Phan Thiet began in 2009 and is being accelerated. Research activities are being intensified to create new, high-yield cotton varieties with improved fiber properties. The budget for training human resources of the cotton sector in the field of agricultural extension will be increased.
Stabilizing cotton prices
Under the cotton development plan towards 2020, the State will support cotton planters. Along with expanding cotton plantations, investment in cotton processing will be increased. Cotton planters will be assisted in selling their products. The Government has assigned the Ministry of Science and Technology to do scientific research and transfer new techniques to farmers so that they can increase productivity and improve the quality of cotton. The Vietnam Textile and Garment Group will open classes to teach agricultural extension officials new cotton planting techniques. These officials are responsible to impart the new planting techniques to farmers.
Decision 29/QD-TTg encourages cotton processing enterprises to help cotton planters mechanize the entire process of cotton planting, from working the soil and watering the plants to harvesting, preserving and preliminarily processing cotton.
A specialized fund will be established to keep cotton prices stable as well as to ensure the interests of cotton planters. This fund will be established with contributions of domestic cotton producers (two percent of their production cost) when they make a profit and the cost of domestic production is lower than the import price. Cotton producers will be allowed to borrow money from this fund with preferential interest rates to buy cotton seeds.
The linkage between cotton planters, companies, research organizations and business associations must be built and maintained. Important links of this chain include the Vietnam Cotton Joint Stock Company, the Vietnam Textile-garment Materials Production and Trade Joint Stock Company, the Nha Ho Cotton Research and Agricultural Development Institute, and cotton production stations in areas where cotton is planted. This is to ensure stable supply of quality cotton for textile-garment production as well as the interests of cotton planters.
Under the cotton development plan, by 2015 Vietnam will have 30,000ha of land planted in cotton with average productivity of 1.5 tonnes per ha. The production output of raw cotton is expected to be 20,000 tonnes.
By 2020, total area of cotton plantations in Vietnam is projected to reach 76,000ha, the average productivity to be 2.5 tonnes per ha and the production output of raw cotton to reach 60,000 tonnes.
From now to 2020, the Vietnam Textile and Garment Group will invest VND3.5 trillion in cotton plantations in the Tay Nguyen (Central Highlands) region./.
Tags: Vietnam cotton
Posted by VBN on Jan 26 2010. Filed under Garment Textile. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry
Subscribe via Email 
Subscribe in a Reader 
Follow us on Twitter 
Connect on Facebook
China Business News