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Projects to help Vietnam retain its garments exporter status
Jul '11
A number of projects which have been initiated recently are bound to boost the production capacity of Vietnam's garment industry and help it retain its position as one of the world's leading textiles and garment exporter.

These projects are mainly aimed at enhancing production of raw inputs like yarn and value-added finished goods like suit.

According to Tran Van Pho, General Deputy Director of the Vietnam National Garment and Textile Group, securing raw materials was a major problem for Vietnamese textiles and garment industry.

Hence, funding the projects aimed at enhancing production of raw materials and other value-added goods is a good move. This would increase the content of local raw materials in Vietnam's garments and boost the competitiveness of the Vietnamese textiles and garment items, he said. This would also enable the industry to register sustainable growth, he added.

The VND 1.35 trillion or US$ 63 million Nam Dan garment and textile cluster project is one of the key projects aimed at increasing country's raw material production. Ha Noi Textile and Garment Joint Stock Company (Hanosimex) is developing this project in Nam Dan district of Central Nghe An Province.

The first phase of the project involving a cost of VND 850 billion million is likely to be completed by 2013. It includes developing support facilities and two fibre manufacturing units.

The second phase of the project will have an investment of VND 500 billion. Besides developing infrastructural facilities, it would also involve setting up of a factory engaged in production of superior quality yarn and two other garment factories, each housing a capacity to churn out 2.4 million pieces of garments per annum.

Another project aimed at establishment of a factory at a cost of VND 350 billion or US$ 16.98 million is being undertaken by Nha Trang Garment and Textile Joint Stock Co, an associate of the Phong Phu Corporation. This new facility planned to be set up in the central province of Khanh Hoa would house a production capacity of 40,000 spindles of spun yarn per annum.

Beside other superior quality yarns, the unit would also produce polyester yarn and TC yarn with 65 percent polyester and 35 percent cotton content, for export as well as domestic consumption.

Work on the Hoa Tho Veston Plant has also been initiated by the Hoa Tho Textile and Garment JSC. The plant is being set up in the central Da Nang City at a cost of VND 86 billion or US$ 4.17 million. This new facility would have a capacity to churn out 400,000 suits per annum, and would be the first to manufacture deluxe suits in the central region.

Editor's note-Being self-reliant in raw materials always augurs well for export of finished goods. It normally results in saving time, and reducing labour and transportation costs, and thereby increasing the competitiveness of the industry.

Fibre2fashion News Desk - India

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