Home / Knowledge / News / Apparel/Garments / Vietnamese garment sector's dependence on imports to continue
Vietnamese garment sector's dependence on imports to continue
28
Oct '11
Vietnamese garment and textiles sector will have to continue its dependence on imports of raw materials owing to the ongoing financial crunch.

The garment and textiles industry in Vietnam has temporarily stopped investing in most of its raw material production projects, according to Vu Duc Giang, Chairman of Vietnam Textile & Apparel Association.

As a result of stoppage of several large scale projects in dyeing and fabric making, the country may miss many of the goals set in the 2011-2015 five-year development plan, that has a vision until 2020.

The five-year plan envisages setting up of 20 plants with a combined capacity to produce 7,000 tons of fabric annually by 2015. Under the plan, 96 garment factories with an annual capacity to produce three million pieces and 14 dyeing units with an annual capacity of 22 million sq. m. are also planned to be set up during the five-year period.

For all the new projects, a total capital investment of about US$ 202 million was estimated to be required, but most of these projects are likely to be suspended owing to the current capital shortage, Mr. Giang said.

In present circumstances, the garment and textiles sector has proposed to call for linkages and joint ventures with overseas manufacturers for setting up some of the projects. However, given the current economic scenario, even that looks difficult, Mr. Giang added.

In addition to the large amount of capital required for construction of the dyeing projects, a lot of capital is also required for purchase and installation of machinery and waste treatment systems in the dyeing plants, according to Nguyen Son, Chairman of the Vietnam Cotton and Spinning Association.

Moreover, dyeing units also have a greater risk of incurring loss owing to high production costs, which make it difficult to compete with countries like China, Taiwan and South Korea. Hence, both domestic and overseas investors are hesitant to invest in projects to set up dyeing units, Mr. Son added.

During January-September of current year, Vietnamese garment and textile sector registered an export turnover of US$ 10.5 billion, but more than US$ 9 billion were spent on raw material imports, which included US$ 5.024 billion on fabric, US$ 1.160 billion on yarn, and US$ 805 million on cotton.

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 21st Jul 2017

No shortage of cotton & yarn in country: Minister

There is no shortage of cotton and yarn in the country, and the...

Pic courtesy: Sutlej Textiles & Industries Ltd

Textiles | On 21st Jul 2017

Sutlej Textiles’ Q1 FY18 EBITDA expands to Rs 76.28 cr

Sutlej Textiles and Industries Ltd (STIL), one of India’s largest...

Textiles | On 21st Jul 2017

CAI revises 2016-17 cotton crop to 337.25 lakh bales

Cotton Association of India (CAI) has upwardly revised cotton crop...

Interviews View All

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Cindy McNaull
Cordura

We have broad range of options in durable fabrics

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X