Home / Knowledge / News / Textiles / Vinatex to invest in rural areas
Vinatex to invest in rural areas
27
Jul '11
The Vietnam National Textile and Garment Group (Vinatex) has come out with a 10-year (2011-20) plan which envisages setting up of new manufacturing facilities in rural provinces rather than in urban areas.

Vinatex expects the shift towards countryside to prove beneficial on several counts. It would not only solve the problem of labour shortage, but would also result in a decrease in production costs owing to lower land rents.

Moreover, it would help cities like Ha Noi and HCM City by easing infrastructure and other pressures relating to transportation, increasing number of immigrants, and environmental pollution.

Under the 10-year plan, Vinatex would invest more than US$ 2 billion to set up 31 fibre manufacturing facilities, 21 dyeing and weaving units, and 164 sewing factories.

After conducting a series of surveys, Vinatex has been able to short-list some areas as ideal investment locations. These are Phu Tho, Thai Nguyen and Tuyen Quang provinces in the north; Quang Tri, Nghe An and Thanh Hoa in the north-central region; Binh Dinh, Phu Yen, Quang Nam and Thua Thien-Hue in the south-central region; and Dong Thap, Tien Giang and Tay Ninh in the south.

These areas have benefits like availability of labour, and comparatively low rents of land. However, these localities lack adequate infrastructural facilities, especially those needed for export business, which may increase the transportation costs.

On the other hand, these areas would benefit by the establishment of textiles and garment facilities, as it would generate employment and enhance the income of the local people.

As per last year's data, there are 3,710 textiles and garment companies in Vietnam. 62 percent of which are located in the southern part, most of them in HCM City and few in Binh Duong, Long An and Dong Nai provinces. Among the 38 percent of industries located in the North, Ha Noi accounts for about half of them.

The main reason for Vinatex deciding to shift the labour intensive textile industry to the countryside stems from the fact that the industry had to compete with other sectors to get sufficient number of workers to meet export deadlines. The textiles and garment industry was unable to offer higher wages as other sectors were able to, hence it lost out on many occasions.

Presently, the average salary of textile workers in urban areas is US$ 120 per month, which is very low and is expected to increase in the coming years, which the textile sector may not be able to afford. Similarly, land rentals in the urban areas are also expected to rise enormously in the coming years, adding pressure to the already low profit margins.

The Vinatex report estimates that the number of people working in the Vietnamese textiles and garment industry would touch the one million mark in the next ten years, even after the use of modern technology and machinery to decrease labour demand.

Fibre2fashion News Desk - India


Must ReadView All

Building of Ethiopian textile unit by Chinese firm starts

Textiles | On 22nd Jan 2018

Building of Ethiopian textile unit by Chinese firm starts

Chinese firm Wuxi No. 1 Cotton Mill will build a textile plant in...

JD.com to invest $3.1 bn to revive industry in NE China

Apparel/Garments | On 22nd Jan 2018

JD.com to invest $3.1 bn to revive industry in NE China

To back the government’s campaign to revitalize the traditional...

SIMA makes pre-budget recommendations to Indian govt

Textiles | On 22nd Jan 2018

SIMA makes pre-budget recommendations to Indian govt

Exemption of 5 per cent goods and services tax (GST) on raw cotton,...

Interviews View All

Dharmendra Shah
Ozone PB Spintex Limited

‘We have made huge investments to ensure quality yarn production.’

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

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...

Ravindra Jain, Ashish Baid

Oswal Prints Private Limited has been manufacturing and exporting ethnic...

Giorgio Mantovani
Corman S.p.A

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

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Anisha Chaudhari
Threads & Shirts

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

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

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 2018

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
69.1%
No
13.4%
Skip
17.5%

Total Votes: 97

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
63.9%
No
28.9%
Skip
7.2%

Total Votes: 97

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
87.6%
No
9.3%
Skip
3.1%

Total Votes: 97

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
82.5%
No
8.2%
Skip
9.3%

Total Votes: 97


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