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

UNIDO, eWTP discuss strengthening ties to back e-commmerce

Textiles | On 25th Apr 2018

UNIDO, eWTP discuss strengthening ties to back e-commmerce

United Nations Industrial Development Organisation director general...

Courtesy: HueTrap

Apparel/Garments | On 25th Apr 2018

Making sustainability affordable is a big challenge

In a lot of instances, being sustainable comes with an additional...

Courtesy: Formosa Petrochemical Corporation

Textiles | On 25th Apr 2018

Formosa to set up petrochemical plant in Louisiana

Formosa Petrochemical Corporation has selected St. James Parish in...

Interviews View All

Abhishek Ganguly
Puma India

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

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Urmil Arya

Sushila International, a well established textile organisation established ...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Marcel Alberts
Eurofibers

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

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...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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

Leave your Comments


April 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
69.9%
No
12.6%
Skip
17.5%

Total Votes: 103

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
63.1%
No
29.1%
Skip
7.8%

Total Votes: 103

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
87.4%
No
8.7%
Skip
3.9%

Total Votes: 103

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
7.8%
Skip
9.7%

Total Votes: 103


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