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 17th Jan 2017

GST rollout from July 1; states to control small taxpayers

The Centre and states have reached a consensus on the issue of dual...

Textiles | On 17th Jan 2017

Reliance Industries net increases 3.6% in Q3FY17

In the three months ended December 31, 2016, India’s biggest private...

Textiles | On 17th Jan 2017

IMF projects advanced economies to grow at 1.9% in 2017

Advanced economies are projected to grow by 1.9 per cent in 2017 and...

Interviews View All

Sunil Rathore
Lacoste India

‘New vendor is welcome if he offers cost, quality and timely delivery’

Abhishek Ganguly
Puma India

‘As a brand, Puma is always looking for new and innovative ways to inspire ...

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search