Vietnam Garment Sector Needs VND6.5 Tln to Develop Material Source

Vietnam needs VND6.5 trillion (US$393.93 million) to grow cotton trees and produce synthetic fabric serving the textile and garment industry, according to the Vietnam Textile and Garment Group (Vinatex).

 

Of the sum, some VND3.5 trillion is to grow 40,000 hectares of cotton trees, which will be regularly irrigated, in central and central highlands provinces, by 2015.

 

Vinatex is joining hands with PetroVietnam to build a VND3 trillion polyester plant, the first of its kind in Vietnam, with a daily capacity of 400 tons of common fabric, 50 tons of special fabric and 50 tons of chip grain. The plant is scheduled to go on stream in 2011 and is expected to supply 40 per cent of the domestic demand for synthetic fabric by 2020.

 

The sector is targeting to raise the localization rate to 50 per cent from the current 30 per cent by 2010 and 60 per cent by 2015, and to obtain export revenues of US$12 billion in 2010 and US$18 billion in 2015.

Last year, Vietnam spent roughly US$5 billion importing cotton, fabric and material while it earned US$7.8 billion from exporting garments and textiles.

 

This year, the sector expects an export turnover of US$9.5 billion. (VNA)