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Textile sector slash imports to boost local production
14 Mar '08
2 min read
Vietnam National Textile and Apparel Group (VINATEX) has decided to take measures to increase local apparel production to 50 percent by 2010 in order to reduce dependency on imports.
Le Quoc An, General Director of Vinatex as well as the Chairman of the Vietnam Textile and Apparel Association (Vitas) opined that encouraging local production of apparel accessories is one of the most significant strategies for the textile and garment industry of Vietnam.
Presently, local production of apparel stands at around 43 percent, however, the industry is expected to produce some one billion meters of fabric in the next five years.
In 2007, Vietnam's textile and garment exports turnover saw a year-on-year rise of 23 percent to reach US $7.5 billion.
Although, expenditure on apparel materials increased by 27 percent in 2007, the average ratio of imported goods compared to that of local products has been declining steadily and this is surely a positive sign for the domestic textile industry.
Of the total amount of apparel materials sourced last year, cotton fiber accounted for $28 million, yarn some $744 million, fabric $3.98 billion while other items and accessories formed about $1.5 billion.
Industry experts suggested that if local material is available at value 10 percent higher than imported items of the same quality, then manufacturers must opt for the domestic sources because of easy accessibility and timely deliverance of the raw materials.
Moreover, Mr An also stated that low profit margins have endangered cotton farming. Therefore the setting up of trading centers for apparel materials is one of the necessary steps to solve difficulties for Vietnam's textile industry.
Le Quoc An, General Director of Vinatex as well as the Chairman of the Vietnam Textile and Apparel Association (Vitas) opined that encouraging local production of apparel accessories is one of the most significant strategies for the textile and garment industry of Vietnam.
Presently, local production of apparel stands at around 43 percent, however, the industry is expected to produce some one billion meters of fabric in the next five years.
In 2007, Vietnam's textile and garment exports turnover saw a year-on-year rise of 23 percent to reach US $7.5 billion.
Although, expenditure on apparel materials increased by 27 percent in 2007, the average ratio of imported goods compared to that of local products has been declining steadily and this is surely a positive sign for the domestic textile industry.
Of the total amount of apparel materials sourced last year, cotton fiber accounted for $28 million, yarn some $744 million, fabric $3.98 billion while other items and accessories formed about $1.5 billion.
Industry experts suggested that if local material is available at value 10 percent higher than imported items of the same quality, then manufacturers must opt for the domestic sources because of easy accessibility and timely deliverance of the raw materials.
Moreover, Mr An also stated that low profit margins have endangered cotton farming. Therefore the setting up of trading centers for apparel materials is one of the necessary steps to solve difficulties for Vietnam's textile industry.
Fibre2fashion News Desk - Vietnam
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