Unproductive investment mars textile-garments trade
22 Nov '05
1 min read
The Vietnam Textile-garment Corporation (Vinatext) has stated that 11 new projects conducted until now this year, with total capital of VND345bil ($21.56mil), incrasing total investment in the field to VND8, 375bil (US$525mil) in 220 projects over the five years (2001-2005).
Even the big investment has failed to enhance the effectiveness. For example, cotton production reached only 56 percent, knitting cloth production 71.4 percent, knitted garments 83 percent and shuttle garments 77 percent of the plan. Only fibre production proved an exception and registered 6 percent increase.
Industry experts say that investment is still confined to separate companies and specialization is inferior which is the cause why investment has been unproductive.