Vietnamese garment export turnover has been high over the last four years at up to $9 billion annually but a large part of their profits have been lost out on the imports of cotton and other raw materials.
In 2009, the garment and textile industries spent $5.4 billion on cotton, fiber and fabric. Apart from shortages of cotton, other raw materials for the garment industry are also lacking, which explains why garment companies every year have to import 70% of the materials needed, mainly from China and Taiwan. In general, every year, Vietnamese enterprises have to import between $2.5 and $4 billion worth of materials.
Le Quoc An, chairman of the Vietnam Textile and Apparel Association said that domestic materials for the garment industry are seriously lacking which makes garment companies unable to rely local suppliers.
Under plans on garment and textile industry development put in place and approved by the Prime Minister, Vietnam strives to obtain a turnover of $14.8 billion by 2010, $22.5 billion dollar by 2015 and $31 billion by 2020
As a part of the plan, the Ministry of Industry and Trade and the Vietnam Textile and Garment Group (Vinatex) plan to increase the cotton growing area to 150,000 hectares in order to obtain 80,000 tonnes of cotton fiber by 2010.
