THUA THIEN HUE – The central province of Thua Thien-Hue will promote investment in projects which focus on producing raw materials, fabrics, fibers, leather and footwear at an industrial zone (IZ) dedicated to the textile and garment industry.
This is part of an action plan by the People’s Committee of Thua Thien-Hue Province to implement the Government’s resolution on developing the supporting industry in Vietnam.
The IZ will be home to projects aimed at making garment accessories such as buttons, zippers, elastic bands as well as spare parts of the textile and garment industry such as combs, wire rods, foot sewing machines, and cutting machines. By 2025, enterprises in the province will be able to produce over 150,000 tons of yarn and over 45 million meters of fabric a year.
This action plan focuses on promoting the development of the supporting industry in apparel-footwear, plastic and rubber and electronics industries.
Supporting materials for the textile and garment industry in the province, in particular, can reach 75% till 2025.
To achieve this goal, the Provincial People’s Committee has proposed that the Ministry of Planning and Investment ask the Prime Minister for permission to build a new IZ covering 400 hectares in Phong Dien District to attract textile and garment investment projects.
In addition, the province has also asked the Government to invest in a high-quality concentrated wastewater treatment plant using circulating wastewater treatment technology at the IZ.
Up to now, the IZs in the province are currently home to 16 projects of yarn production with an annual combined capacity of some 108,800 tons and a total registered investment capital of some VND9,042 billion. There are 15 licensed garment and fabric projects with total registered investment capital of some VND2,530 billion and 432.5 million products a year.
According to Nguyen Van Son, deputy head of Thua Thien Hue Economic and Industrial Zones Authority, the textile and garment industry in the province is able to turn out more than 500 million garment products and 100,000 tons of yarn a year, contributing some 42.6% in production value and 41.6% in export value in the central region.
However, the added value of the industry is very small. The average localization ratio is only some 40%. Enterprises in the province must import 70% of fabric materials, which is why Thua Thien-Hue province must initiate the action plan to advance the supporting industry.
By Nhan Tam