Home / Knowledge / News / Textiles / BIDV commits $2 bn to boost Vietnamese textile industry
BIDV commits $2 bn to boost Vietnamese textile industry
14
Oct '15
Over the next 5 years, Vietnam's clothing and textile industry will be able to avail of loans up to $2 billion from the Bank for Investment and Development of Vietnam (BIDV)to increase their productivity and achieve their potential, a Vietnamese newspaper has reported.

At a recent conference in Hanoi, BIDV Chairman Tran Bac Ha said, “BIDV has committed to providing loans of up to $2 billion to support domestic companies in the clothing and textile industry over the next five-years.”

He also said that once the Free Trade Agreements are in place, Vietnam would have access to a wider market, and investors would prefer to gradually shift their manufacturing base to the Vietnam. Bac Ha presumption was that this would only happen if businesses restructure and enhance their competitiveness.

But other speakers at the conference were not as optimistic as Bac Ha.Most of the speakers felt that despite having an average growth rate of 18.4 per cent for the past five years with exports reaching a record high $24.7 billion in 2014, Vietnam's clothing and textile industry hasn't realized its full potential.

Manufacturers in the industry remain largely non-competitive in the global market place, relegated to performing work considered menial low level outsourcing with low added value and scant profits, they said.
In order to prepare for the onset of FTAs in the offing, domestic firms in the industry working in concert with the government need to take the initiative to resolve problems plaguing it.

“The use of outdated technology, shortage of funds for investment, and weak management capacities are the most significant challenges facing companies in the industry,” said National Garment and Textile Group (Vinatex) Chairman Tran Quang Nghi.

General Director Truong Thi Thanh Ha of the Dong Xuan Knitting Company stressed the point that domestic clothing and textile companies have not kept pace with the latest technologies. “In fact far too many companies in the industry are still using old dilapidated machinery and equipment purchased decades ago,” Ha said.

In view of the upcoming challenges arising from the trade deals, the Vietnam government should ease the financial burden by easing the tax burden and land rentals, he said. Ha said this move would allow the companies to use these monies to fund new modernized state-of-the-art machinery and equipment.

Phan Chi Dung of the Ministry of Industry and Trade (MoIT) said many domestic companies depend extensively on imported raw materials, which along with low productivity will make it extremely difficult for them to take full advantage of FTAs.


Must ReadView All

Sri Lanka’s apparel exports rise after EU GSP+ reinstatement

Apparel/Garments | On 18th Nov 2017

Sri Lanka’s apparel exports rise after EU GSP+ reinstatement

Sri Lanka’s apparel exports from January to September 2017 has...

Bangladesh plans 2 leather estates in Rajshahi, Chittagong

Apparel/Garments | On 18th Nov 2017

Bangladesh plans 2 leather estates in Rajshahi, Chittagong

Bangladesh Prime Minister Sheikh Hasina has said two more leather...

ASEAN, Hong Kong sign free trade agreement

Textiles | On 18th Nov 2017

ASEAN, Hong Kong sign free trade agreement

The Association of Southeast Asian Nations (ASEAN) and Hong Kong...

Interviews View All

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Vidhyaa Shankar. S
A Ganapathi Chettiar

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

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Erik Sy

Manila-based CustomThread is a start-up offering premium custom apparel...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Ritu Kumar
Label Ritu Kumar

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

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

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

November 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

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

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

Yes No

Active Poll

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

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

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

Yes No

Active Poll

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

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

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

Active Poll

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

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


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