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Vietnam denies licenses to new garment projects
Mar '12
Local authorities in Vietnam are increasingly refusing 'go-ahead' permission to new textile and garment projects. While environmental pollution threats are impeding the approval of textile projects, garment projects are losing favour for their incapacity to contribute much to the country's economy.

As contended by the Vietnam Textile and Garment Group (Vinatex), it has been enduring difficulties in executing new projects as local authorities are limiting issuance of licences to textile and garment enterprises.

Deputy Director of Hung Yen provincial Planning and Investment Department, Tran Quoc Van, said there already exists a textile and garment industrial zone in Hung Yen province, and provincial authorities have been extending all possible assistance to the projects in the zone.

However, in future they might act more vigilantly in sanctioning projects outside the industrial zone, and may limit licensing of textile and garment projects, he said.

After a long period of trying to draw maximum number of investment projects, local authorities in Vietnam have now adopted a different outlook and are focusing on enhancing the quality of investment rather than chasing the number.

The authorities are now focusing on attracting projects with state-of-the-art technology which can help them in enhancing value, while supporting development of local economies. This has greatly raised the difficulties of textile and garment investors in the northern provinces of Hung Yen and Thanh Hoa as well as in the southern provinces of Dong Nai and Binh Duong.

Fibre2fashion News Desk - India

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