Vietnam Seeks Fresh Investment into Textile & Garment Industry

Vietnam Seeks Fresh Investment into Textile & Garment Industry

Textile and garment firms in Vietnam need fresh investment to renew their technology, the Central Economic Management Institute recommended.

The recommendation was put forward after the institute conducted a survey on technological renovation at 100 textile, garment and chemical companies in Hanoi and Ho Chi Minh City.

According to the survey, the textile industry’s technological innovation is taking place at a slow pace. So far, the industry has renovated 30-35 per cent of its equipment and machines.

Many companies continue to use equipment imported from China and India in the 1970s. Others still use 100-year-old power-looms, while modern equipment from Germany, Switzerland, Italy and France account for only 30-35 per cent.

The survey shows that most enterprises want to renovate their technology and machinery but lack capital to do so. Up to 70 per cent of surveyed enterprises lack information about technology and market.

Meanwhile, the process to petition State support for technological modernisation is complicated and takes time, and is further hindered by worry about investment risks.

To quicken technological renovation in Vietnamese enterprises, the Central Economic Management Institute recommends that the State should quickly set up a risk investment fund to support them to invest in new technology.

VietNamNet