Vietnam's garment industry is aiming to reduce its dependence on imported raw materials by focusing more on the use of domestic raw materials for its garment and textile industries.
The garment and textiles industry is the third largest export revenue generator for the country's exchequer. However, the net earnings of the sector remain to be relatively low due to its greater reliance on imported raw inputs.
As per the garment and textiles sector data, though the sector made US$ 9 billion in exports during January to August this year, it imported raw inputs worth US$ 5.5 billion during the same period.
In accordance with an extensive plan prepared by the Ministry of Industry and Trade for the sector, the country is expected to produce 500,000 tons of fibre and 1.5 billion square metres of cloth through 2015, and would thus boost the overall export earnings to US$ 18 billion.
Around 60 percent of the raw materials for the country's garment industry would be sourced from domestic sources till 2015 and this ratio would be raised to 70 percent by 2020. It is projected that by 2020 the garment industry would grow its production to 650,000 tons of fibre and two billion square metres of cloth, thus making US$ 25 billion in export earnings.
Lately, Vietnam has been investing in raw material storage centres and cotton plantations to boost the use of domestic raw materials in garment and textiles industry.
The area under cotton cultivation had fallen below 3,000 hectares in 2009 from over 32,600 hectares in 2001. Owing to this almost no domestic sourcing for fibre production is available compelling the producers to completely rely on imports from foreign countries.
Though the country has reclaimed its cotton cultivation acreage to some extent, but by now it has only been able to recover 10,000 hectares of area.
In the past, dearth or unavailability of raw material has caused several raw material storage centres to suffer badly, like for instance, Ho Chi Minh City based Saigon Garment JSC No.2 steadily shifted its operations to other business.
Fibre2fashion News Desk - India
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