Vietnam firms face problems after shifting from HCM City

24 Aug '12

2 min read

In accordance with the Ho Chi Minh (HCM) City economic development strategy, garment and textile firms creating pollution or those with huge work force are being asked to relocate outside the HCM City, in a wake to cut the number of immigrants in big cities.

Adhering to the policy, several textile and garment firms shifted to Mekong delta provinces and central coastal provinces.

However, post relocation, these firms are facing problems in recruiting new work force at the new locations, as these provinces still lack skilled and efficient workforce. Moreover, such relocation from the city has also raised the transportation costs.

Hence, it becomes important to assess if shifting firms from the City to suburbs or other provinces is a feasible option, according to experts.

According to industry analysts, HCM City and the southern provinces of Bing Duong and Dong Nai are considered to be the garment and textile production hubs of Vietnam.

According to Vietnam Textile and Apparel Association (VITAS) statistics, over 58 percent that is about 2,146 of total 3,700 garment and textile enterprises in the country are based in the two provinces and the HCM City.

Another 27 percent of these enterprises base themselves in the Red River Delta, 7 percent in the north and central region and central coastal provinces, 4 percent in Mekong delta provinces and just 1 percent in the highland provinces.

Fibre2fashion News Desk - India

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