Textile & Fashion

Vietnam Government shuns The Vietnam Textile industry over Pollution issues

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Taking in to consideration the environmental risk factors and the pollution that may be forthcoming, the Vietnam Government is unwilling to issue license to textile and dyeing projects in the country. This may prevent the country from obtaining full advantage of the Comprehensive & Progressive Agreement for Trans-pacific Partnership (CPTPP).

According to The Vietnam Textile & Apparel Association (VITAS), this move of the government is disagreeing with the very grounds of the upcoming CPTPP. Out of the total Foreign Direct Investment (FDI), only 8.3% is aimed at developing the textile and dyeing industry while a hefty 90% is fed into garment projects, hence lowering indigenous production.

Cities and provinces like Da Nang, Dong Nai and Ba Ria-Vung Tau has refused licensing to textile and dyeing industry, as a consequence of which the VITAS are bound to outsource for their foreign partners. For an instance, Chinese textile company Huafang, which had plans to set up a 110 million USD fabric industry in the Vinh Long province of the Mekong Delta, is abandoning the plan for licensing issues.

Vietnam is highly dependent on the imports of raw material for its garment industry and without the government backing up the industry, it will be impossible to sustain a viable business model for long. The government, however, is more focused on developing industrial parks and SEZ (Special Economic Zones), which could cater for setting up textile and dyeing industries.

With proper aid from the government, the textile industry may reach a value of 200bn USD by 2035.

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