The Government has just issued Decision No. 1643/QD-TTg approving the “Strategy to develop Vietnam’s textile, garment and footwear industry until 2030, with a vision to 2035”.
For the textile and garment industry, the strategy sets an expectation that the growth of export turnover in the 2021 - 2030 period will reach 6.8 - 7.2%/year, of which the period 2021 - 2025 will strive to reach 7.5 - 8. 0%/year. Striving for export turnover in 2025 to reach 50-52 billion USD and in 2030 to reach 68-70 billion USD.
The strategy also states that developing the fashion industry is considered a new direction. Accordingly, focusing on developing the elements of design human resources, raw material supply, production and distribution systems to form supply chains, domestic value chains, and create sustainable foundations and foundations. for the development of the fashion industry and the Vietnamese fashion market; and develop fashion centers in Ho Chi Minh City and Hanoi.
The strategy emphasizes on encouraging and creating conditions for enterprises to gradually shift their investment from outsourcing to higher production (FOB – purchase of raw materials, semi-finished products, ODM - self-design and sale). brand, OBM- owning a private label), building a private brand to improve the efficiency and competitiveness of the business.
Raw materials are the most difficult problem of the textile industry for a long time. Therefore, in order to promote the development of the textile and garment supporting industry, according to the Strategy, the textile and garment industry strives for the localization rate of the industry in the period of 2021 - 2025 to reach 51% - 55% and in the period 2026 - 2030 to reach 56%. – 60%.
To achieve this goal, it is necessary to attract investment in the development of supporting industries and products of raw materials and accessories for the textile and garment industry on the basis of taking full advantage of the international trade agreements that Vietnam has signed. participation.
Along with that, the direction of supporting industry projects, the production of raw materials and auxiliary materials will focus on developing in areas with high density of textile and garment enterprises such as localities in the Southeast region (Binh Phuoc, Tay Ninh, etc.). , Ba Ria-Vung Tau), Red River Delta (Hung Yen, Nam Dinh, Thai Binh) and some central provinces (Thanh Hoa, Thua Thien-Hue, Quang Nam, Quang Ngai, Binh Dinh) to reduce costs transportation, lower product costs and improve competitiveness.
In particular, promote the development of textile, dyeing and supporting industries. Gradually increase the localization rate of the textile and garment industry, to improve production efficiency and maximize the benefits obtained from free trade agreements. Investing in strongly developing knitted and woven products, which are products capable of linking yarn and garment production stages.
Also in this period, the textile and garment industry needs to build a number of large specialized textile and garment industrial zones (including yarn-weaving-dyeing and fabric finishing chains), in order to soon improve and develop the weakest stage of the textile industry. Vietnamese garment today.
To do these things, the Strategy emphasizes the role of state management agencies in prioritizing enterprises to invest in fiber, yarn, weaving, dyeing… with policies to encourage and create conditions for investors and enterprises to develop investment projects with advanced technology that do not cause adverse impacts on the environment and have connections with domestic garment enterprises, forming a chain of links across the world. Value Chain.
The approved textile and garment development strategy will help form industrial parks with centralized wastewater treatment to attract textile and dyeing projects. Currently, the infrastructure for textile dyeing and fabric production is still limited.
In fact, domestic fabric production only reaches 2 billion meters per year, meeting 25-30% of the demand of the garment industry. Vietnam’s textile and garment industry currently depends on 60-70% of raw materials imported from China. Fortunately, Vietnam has joined many FTAs, creating conditions for textiles and garments to expand export markets with the tax rate gradually reduced to 0%.
But in order to enjoy tariff preferences, businesses must meet the rules of origin according to each FTA, for example, with CPTPP being the rule of origin “from the yarn onwards”, with the EVFTA being “from the fabric onwards”. Therefore, if it is not possible to produce materials and accessories, meeting the origin requirements, the textile and garment industry will not benefit from FTAs and will continue to have to process with low added value.
In some markets today, customers change their perception from “fast fashion” to sustainable fashion towards a circular business. In particular, they are concerned that supply chains must be traced to labor and environmental standards.
The development strategy of the textile and garment industry is also oriented, from now to 2030, the industry will gradually shift its focus to sustainable development and circular business. From 2030 to 2045, develop effectively and sustainably according to the circular economy model.
Therefore, policies need to encourage and create conditions for enterprises to invest in scientific research and apply advanced technology to production. Review existing specialized centers and laboratories. Invest in improving the potential of centers and laboratories at specialized research institutes to have the capacity to research and check the quality of internationally recognized products, with a focus on safety criteria. and ecology.
Formulate and promulgate mechanisms and policies to encourage the import of source technology, high technology and clean technology in the textile and garment industry. Incentivize and encourage enterprises to invest in new machinery, equipment and technologies to reduce energy consumption and wastewater discharge in order to help businesses offset initial investment costs and improve product competitiveness. The strategy emphasizes paying attention to green and clean standards for textile products right from raw materials to finished products.
Vietnamese garment enterprises have a large processing capacity, raw materials account for about 65% from imported sources. This is the biggest barrier for the development of the textile industry today.
Source: Vietnam Posts English
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