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Textile-Clothing and Footwear: The Spearheads

Cập nhật: 26/04/2010 09:25
Deputy Prime Minister Hoang Trung Hai chairs a meeting in the southern key economic zone

(VEN) - Textile-clothing and footwear are among several spearheads for development in key economic zones based on the Official Letter 153/BCDDP-VP dated February 22, 2010 of the Key Economic Zone Steering Committee and instructions by Deputy Prime Minister Hoang Trung Hai.

Planning material areas for the textile-clothing sector
Textile and garment businesses located in the key economic zones played a decisive role in the textile and garment sector's US$9.1 billion export value in 2009, thus turning the sector into a leading export earner. Alongside gaining footholds in foreign markets, many textile and garment businesses such as Phong Phu, Viet Tien, Nha Be, Viet Thang and Thai Tuan made great efforts to gradually dominate the domestic market through launching extensive marketing campaigns in big cities and distributing products in rural areas.
The southern key economic zone, particularly Ho Chi Minh City, Dong Nai and Binh Duong, attracts 40 percent of the workforce and turns out 45 percent of the production value of the textile-clothing sector. The area saw an average growth rate of 34.3 percent in the textile-clothing revenue annually from 2006-2009. The Ministry of Planning and Investment said that efforts have been and will be made to build textile dyeing complexes in Long An province from 2008-2012, and in Tien Giang province from 2012-2015. The Vietnam National Textile and Garment Group has taken charge of building two garment accessories centers in Ho Chi Minh City and tackling five pivotal textile and dyeing projects from 2007-2012. Of them the Binh An dyeing plant in Ho Chi Minh City will have an annual capacity of 45 million square meters per year.
The president of the Vietnam Textile and Apparel Association (Vitas), Le Quoc An, said this year Vitas will spend over VND1.1 trillion to create breakthroughs in the productivity and production technology. The textile and garment sector is also attempting to bring together import and export businesses, restructuring local material supply and further attracting investors to raise the local content in made-in-Vietnam textile-garment products. The sector is assigned with an export target of US$10.5 billion in 2010, 12 percent more than in 2009.
The footwear sector builds small and medium size industrial parks
The footwear sector seeks to achieve US$10.4 billion in total export value in 2015 that is expected to reach US$16.5 billion in 2020 and an estimated US$23.8 billion in 2025. The sector is attempting to increase the local content in footwear products to 60.65 percent in 2015, 75-80 percent in 2020 and 80-85 percent in 2025. Similarly, the sector will use 838,000 laborers in 2015, increasing to 1,003,000 laborers in 2020, and 1,167,000 laborers in 2025.
To achieve these goals, and maintain 70 percent of the total capacity in the key economic zones, the footwear sector is employing a huge number of the laborers to work in the key economic zones. An export footwear production industrial zone and a center for promotion of fashionable leather and footwear products have been established in Hai Phong City. Similarly, Da Nang will become a trade center in the central region key economic zone where top-of-the range leather and footwear products will be made and businesses will be encouraged to move production to the suburbs. As regards to the southern key economic zone, efforts will be made to stabilize production in major footwear production areas. Increasing production in Long An, Tien Giang and outlaying areas that are still weak in footwear production is also recommended.
The chairman of the Vietnam Leather and Footwear Association (Lefaso), Nguyen Duc Thuan, said the local footwear industry must be geared towards producing both exports and items for local sale. Reality shows that footwear businesses are in a position to see good profits provided that material expenses account for half of total revenue, payroll expenses around 23 percent and management cost another 8-10 percent. Therefore, the footwear sector seeks to maintain the existing 14 percent share in the world market and the second largest footwear exporter position in Asia. Businesses should target to seize 50-70 percent of the share in the domestic market through developing distribution outlets and promoting brands. The local footwear industry now consists of over 500 businesses exporting 600 million pairs of shoes/year and employing more than 650,000 laborers. Local businesses only produce 35 percent of the sector's total export value. Therefore, the domestic market with more than 85 million residents is full of potential for local businesses./.
Nguyen Le
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