The Ministry of Industry and Trade has ratified the textile and garment industry development plan 2020, with a vision for 2030.
The plan is expected to boost the industry's growth, said deputy minister Do Thang Hai at a meeting early this week.
Underthe plan, the industry aims to achieve 55 percent localisation rate by2015, which will increase to 65 percent and 70 percent by 2020 and 2030respectively.
During the 2013-2020 period, the industry plans an annual production growth rate of 12 to 13 percent.
Exportsin the 2013-2015 period are expected to increase by 10 to 11 percentyearly, increasing by 9 to 10 percent in the 2016-2020 period, and by 6to 7 percent in the 2021-2030 period.
The growth rate of thedomestic market will be 9 to 10 percent in the 2013-2015 period and10-12 percent in the 2016-2020 period, according to the plan.
Labour-intensivetextile and garment firms will be moved to the rural areas, while thosespecialising in fashion production as well as in the supply of relatedservices will be placed in urban areas.
According to the VietnamTextile and Apparel Association, Vietnamese clothing products are beingexported to 50 countries and territories. The US is the largest importerof Vietnamese textiles and garments, accounting for 48 percent of theindustry's total export revenue.
Vietnam's textile and garmentexports have grown 15 to 17 percent per year since 2007, said Nguyen VanTuan, deputy head of the Vietnam Cotton and Spinning Association anddeputy secretary-general of VITAS. The export turnover is estimated toreach 40 billion USD in the 2020-2025 period, requiring 12 billionsquare metres of fabric and five million workers.
Textiles andgarments currently make up 13.6 percent of the country's total exportvalue. That percentage is expected to rise when the country signs tradeagreements.
The country is currently negotiating theTrans-Pacific Partnership Agreement (TPP) and the Viet Nam-EU Free TradeAgreement, which are expected to come into effect in the next couple ofyears.
When these agreements are signed, Vietnamese garment andtextile products will enjoy zero per cent tax rate in the US and EU. Atpresent, the average tax rates are 17.5 percent and 9.6 percent in thesetwo markets, respectively.
Vietnam's exports to the US and EUare still limited, according to experts. The US and EU markets spent 105billion USD and 260 billion USD on garment and textile productsrespectively, last year.
However, Vietnam's exports accounted for only 8 percent and 3 percent of the US and EU market shares respectively.-VNA
The plan is expected to boost the industry's growth, said deputy minister Do Thang Hai at a meeting early this week.
Underthe plan, the industry aims to achieve 55 percent localisation rate by2015, which will increase to 65 percent and 70 percent by 2020 and 2030respectively.
During the 2013-2020 period, the industry plans an annual production growth rate of 12 to 13 percent.
Exportsin the 2013-2015 period are expected to increase by 10 to 11 percentyearly, increasing by 9 to 10 percent in the 2016-2020 period, and by 6to 7 percent in the 2021-2030 period.
The growth rate of thedomestic market will be 9 to 10 percent in the 2013-2015 period and10-12 percent in the 2016-2020 period, according to the plan.
Labour-intensivetextile and garment firms will be moved to the rural areas, while thosespecialising in fashion production as well as in the supply of relatedservices will be placed in urban areas.
According to the VietnamTextile and Apparel Association, Vietnamese clothing products are beingexported to 50 countries and territories. The US is the largest importerof Vietnamese textiles and garments, accounting for 48 percent of theindustry's total export revenue.
Vietnam's textile and garmentexports have grown 15 to 17 percent per year since 2007, said Nguyen VanTuan, deputy head of the Vietnam Cotton and Spinning Association anddeputy secretary-general of VITAS. The export turnover is estimated toreach 40 billion USD in the 2020-2025 period, requiring 12 billionsquare metres of fabric and five million workers.
Textiles andgarments currently make up 13.6 percent of the country's total exportvalue. That percentage is expected to rise when the country signs tradeagreements.
The country is currently negotiating theTrans-Pacific Partnership Agreement (TPP) and the Viet Nam-EU Free TradeAgreement, which are expected to come into effect in the next couple ofyears.
When these agreements are signed, Vietnamese garment andtextile products will enjoy zero per cent tax rate in the US and EU. Atpresent, the average tax rates are 17.5 percent and 9.6 percent in thesetwo markets, respectively.
Vietnam's exports to the US and EUare still limited, according to experts. The US and EU markets spent 105billion USD and 260 billion USD on garment and textile productsrespectively, last year.
However, Vietnam's exports accounted for only 8 percent and 3 percent of the US and EU market shares respectively.-VNA
