As planning with vision towards 2030 is obsolete, the Vietnam Textile and Garment Association (VITAS) has asked the government to review and adjust development planning for the industry. Under the current plan, the industry’s export value was targeted to reach $20 billion by 2020 but the figure exceeded $27 billion last year and is expected to hit $31 billion this year. Right from 2010 to 2015, the industry had a stable growth of export value of 15 per cent per year.
Vietnam’s demographics that consists of a population structure with more than double the number of working age than dependents was advantageous for the expansion of the sector. The reason is that only then the Government can help the industry keep up with the country’s integration and make use of the abundant resources.
Deputy Minister of Industry and Trade, Hồ Thị Kim Thoa observed that global textile and garment producers were shifting their place of production to places that had a good labour force and lower production costs. He endorsed VITAS’ recommendation, saying that the industry should make changes to its planning as it was enjoying opportunities stemming from the country joining free trade agreements.
To help textile and garment firms take advantage of opportunities and overcome challenges brought by free trade agreements, the Association suggested the government should update development strategy that was approved by the then Prime Minister in 2008 and the ministry of industry and trade in 2014. VITAS has asked the government to create a development strategy to 2025 with a vision towards 2040. It also wants the government group textile and garment enterprises in concentrated industrial parks.
Currently, there are several textile and garment industrial zones in the northern provinces of Hưng Yên, Thái Bình and Nam Định and the southern province of Đồng Nai and Bình Dương, which cover a few hundred hectares each. VITAS suggested the government allow establishment of textile and garment industrial zones with 500-1,000 ha to draw domestic and foreign capital.
