Textile and Garment is an industry with high export turnover and growth rate and is one of the export industries that play an important role in the growth of the economy, accounting for 12 - 16% of the total export turnover of Vietnam. In 2022, although the world economy has many fluctuations, the textile and garment exports decelerated heavily in the fourth quarter, Vietnam's textile and garment export turnover still reached US$ 44.4 billion, up 9. 7% compared to 2021. To achieve that result is thanks to the efforts of enterprises, the active attention and support from the Government, agencies, departments from central to local levels, customers and partners, especially employees, have always accompanied the enterprises to overcome difficulties and challenges to achieve the goal of sustainable development.
With the goal of bringing the textile and garment industry to steady development in the coming periods, in line with the process of world economic integration and the general development speed of the whole industry in the period of 2021-2030 and after 2030, it is very necessary to develop a Sector Development Strategy. On that basis, the Prime Minister issued Decision No. 1643/QD-TTg approving the "VIETNAM TEXTILE AND GARMENT INDUSTRY DEVELOPMENT STRATEGY TO 2030, VISION TO 2035."
The overall objective is to develop the Textile and Footwear industry as the main export sector of the economy; to step up the production of products with high quality and competitiveness in the international market, meeting the needs of the domestic market; maintaining its position in the group of leading producing and exporting countries of textile, leather and footwear products in the world. By 2035, Vietnam's Textile, Garment and Footwear industry will develop effectively and sustainably according to the circular economy model; complete the domestic production value chain, effectively participate in the global value chain; develope a number of regional and world brands.
Specifically, in the period of 2021 - 2030, the growth rate of textile and garment export turnover will reach 6.8% - 7.2%/year, of which the period 2021 - 2025 will reach 7.5% - 8.0%/year. Striving for export turnover in 2025 to reach US$ 50-52 billion and in 2030 to reach US$ 68-70 billion. The localization rate of the textile and garment industry in the period of 2021 - 2025 will reach 51% - 55% and in the period 2026 - 2030 will reach 56% - 60%. Besides, the industry is also oriented to develop towards specialization and modernization; accelerate the shift from manufacturing outsourcing to forms requiring higher capacity
SOLUTION TO THE PROBLEM OF LACKING THE MATERIAL
Textile and garment is one of the industries depending quite heavily on raw materials from other countries. Currently, the country can only meet 25% of the fabric demand, cotton products are still heavily dependent on imported goods. In the situation the world supply chain is interrupted, Vietnam textile and garment industry will fall into a shortage of raw materials. On the other hand, enterprises also cannot take advantage of tariff preferences from signed Free Trade Agreements if they have not met the rules of origin. In order to solve this problem, the development strategy of the industry has set an orientation to promote investment in the production of raw materials, auxiliary materials, supporting industries; focusing on the production of fabrics, artificial fabrics, encourage the production of fabrics from domestically produced yarns in order to reduce imports, positively impact the linkages, forming a complete supply and value chain in the industry. Specifically, for the Textile industry (including fiber, yarn, weaving, dyeing and fabric finishing): Developing production of synthetic fibers, functional fibers, new and environmentally friendly raw materials, and high quantity, high quality threads, ... meet the needs of domestic production, gradually reduce imports. Investing in strongly developing knitted, woven and technical fabrics. To build a number of specialized industrial parks, large specialized complexes of Textile, Garment, Leather and Footwear (including yarn chains, textile dyeing, finishing fabrics; tanning); prioritize projects with large capacity from reputable investors, using advanced and modern technology, with synchronous and closed production processes and ensuring compliance with environmental regulations.
FOCUS ORIENTATION OF PLANNING INDUSTRIAL PARKS
In order to link the chain to achieve the highest efficiency, the Strategy also "designates" clearly to attract investment in a number of specialized industrial parks and specialized complexes in the Northern region (Nam Dinh, Hung Yen, Thai Binh, …); the Central region (Thanh Hoa, Nghe An, Thua Thien-Hue, Quang Ngai, Binh Dinh,...) and the South (Binh Phuoc, Tay Ninh, Long An,...)
At the same time, directing projects of supporting industry, production of raw materials and auxiliary materials to focus on development in areas with high density of enterprises in the above-mentioned localities to reduce transportation costs, reduce costs and enhance the competitiveness of products. This orientation will contribute to solving the difficult situation when applying for investment in textile and dyeing projects in localities, attracting investment in the supply shortage. In addition, enterprises also need to invest in new machinery, equipment and technologies to improve productivity and product quality, reduce energy consumption, reduce waste water discharge, and reduce greenhouse gas emissions; increase recycling and reuse of raw materials, fuels and wastes; Prioritize the stages of creating high added value associated with intelligent, automated and environmentally friendly production processes.
INCREASE LOCALIZATION RATE, BUILD VIETNAMESE FASHION BRAND
Accordingly, the strategy sets the direction of textile and fashion development, promotes and creates cohesion, coordination between manufacturers, product design and development, and business to orient and create fashion trends for the domestic market; develop product brand and national brand.
To develop fashion centers in Ho Chi Minh City and Hanoi; promote the development of textile fashion in close association with marketing and communication strategies; fashion textile products to serve domestic and foreign needs and tourists, in association with the world trend of green and convenience products. Build up a plan to develop Vietnamese textile, leather and footwear brands, bringing Vietnamese brands into the global retail chain; improve design capacity, branding and competitiveness; Research owns famous brands abroad.
TO ACHIEVE THE GENERAL OBJECTIVES AND ORIENTATIONS PROVIDED, THE STRATEGY PROVIDES 7 FOCUS SOLUTIONS INCLUDING:
1. Market development. In which, promoting and diversifying trade promotion activities; providing regular, complete, accurate and timely market information, support enterprises to diversify and expand their markets. Diversifying forms of promotion and introduction of textile and footwear products through entertainment, cultural and social platforms such as dramas, music, and fashion events. Raising awareness for enterprises about the impact of free trade agreements, consulting on international trade law, with a focus on rules of origin and trade remedies. Promulgating and implementing policies to protect consumers and the domestic market. Enterprises need to invest and improve their marketing capacity; actively monitor market developments, approach customers; focus on developing product standards in line with international practices; strengthen digital transformation in management and production activities; actively participate in fairs and exhibitions at home and abroad.
2. Attract investment and develop domestic value chains. Accordingly, the State management agency completes the legal system, mechanisms and policies related to investment in an open and attractive way, ensuring compliance with international commitments and practices, especially paying special attention to attract investment projects in the short supply of the industry. Implementing programs to connect, transfer technology, experience in management and production between domestic and foreign enterprises. Building a database system, sharing information on industry raw materials and auxiliary materials for enterprises to promptly exchange about supply sources; to establish a trading floor for raw materials and accessories for the Textile, Garment and Footwear industry to help enterprises cut transaction costs and improve production and business efficiency.
3. Develop raw materials and auxiliary materials for production. Accordingly, to encourage investment in projects to produce functional fibers, new, environmentally friendly raw materials, high-cost, high-quality yarns; textile production, dyeing, finishing and supporting industries. Develop a mechanism to support funding for the treatment of wastewater and waste in specialized industrial zones and clusters that have been planned.
4. Management organization. In which, State management agencies complete and implement policies to support businesses and investors according to the set strategic orientations. At the same time, industry associations continue to advise the Ministry of Industry and Trade and related ministries to develop policies on industry development and protect the legitimate interests of enterprises and consumers; implementing programs towards sustainable development goals for the textile industry.
5. Improve the quality of human resources. Strengthen human resource training for the production of textile raw materials and accessories, especially human resources in the dyeing, finishing and design stages; capacity building training for textile enterprises in production management, value chain management and customers; application of new technologies to improve production efficiency and quality productivity.
6. Scientific and technological innovation and sustainable development, greening the textile, garment and footwear industries. Specifically: Developing and promulgating mechanisms and policies to encourage the import of source technology, high technology and clean technology; encouraging enterprises to invest in new machinery, equipment and technologies; Developing policies to promote technology application of the industrial revolution 4.0 (3D printing, new materials, automation, robotics, digitization,...), applying advanced science and technology based on information technology and artificial intelligence; Organizing training courses, disseminating information and improving capacity on management and control of environmental issues at enterprises; research and develop policies to support traceability, transparent value chains... in line with international standards...
7. Financial mechanisms, taxes and capital sources. Formulating policies on investment, credit and tax for supporting industries; supporting policies for vocational training in spinning, weaving, dyeing and finishing.
File attached: Decision No. 1643/QĐ-TTg approving “Vietnam textile, garment and footwear industry development strategy to 2030, and vision to 2035”.
