Recently, Vietnamese Ministry of Industry and Trade (MOIT) has submitted a development strategy till 2015, for textile and apparel industry with various expansion policies and ambitious targets.
The Ministry encourages all economic sectors to participate and focus on development of materials resources, especially cotton.
Vietnam's cotton output is very small and is also suffering from strong competition of imported cotton at local markets, compared to other textile and apparel manufacturing countries in the world.
In recent years cotton planting area in Vietnam has increased to around 25-35 thousand hectares (ha), distributed at the North and South regions of the country. However, cotton yield of Vietnam stands only at 10 quintals per hector (ha). Where as it is 30 quintals per ha in the US, 40 quintals in Mexico, 12 quintals for Australia and 16 quintals in Israel.
Experts observe, since Vietnam's accession to WTO, import tariff for cotton has been nullified resulting increase in imports. Thus, local producers are facing various difficulties for development.
In the proposed development policy by MOIT, the industry targets to obtain annual production growth of 16-18 percent and 20 percent for exports in 2007-2010 period.
In order to reach such targets, the industry would need investment of around US $7 billion, which would be mobilized from various local and foreign sources.
In the first eight months of 2007, the country is enjoying strong export growth in textile and apparel sector and has fetched a turnover of $5.084 billion, posting a year-on-year rise of 30 percent.
Vietnam targets to earn $7.5 billion from exports of textile and apparel in 2007.
Fibre2fashion News Desk - Vietnam
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.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
