Vietnam : Poor machinery induces higher cost for garment sector

Ministry of Industry and Trade believes that incompetent and energy consuming equipments in the garment and textile industry is causing an unnecessary drain of finance.
Although, the industry has seen an outstanding growth of 31 percent in past one year, it still requires immense development to compete on an international level and meet the set target of US $7.5 billion for export turnover.
According to VITAS statistics the country employs more than 500,000 people and encompasses an approximate of 2,000 apparel and textile companies with about 12,000 power looms.
Inefficient management skills and wasteful energy consumption has nearly doubled the production cost. A recent study shows that the industry loses nearly 20 percent as energy cost. What is needed is adaptation to an improved technology that will enable domestic industry to stand at par with giant international companies.