In an ad hoc meeting organized by the Ministry of Industry, to discuss the garment sector’s next five-year development plan, Viet Nam’s textile sector last week disclosed that by 2010 their target in export is to increase the previous objective from US $2 bln to US$10 billion of products annually. The revision comes shortly after the nation was ranked 16th among 153 garment exporting countries late last year. Ministry officials at the meeting sought ideas for the new draft before it is submitted to the Prime Minister next month for approval.
The new target is almost double last year’s US $5.5 billion textile export value- would require industry-wide efforts to overcome persistent obstacles, including design capability and material supply, according to an industry insider. Deputy Minister of Industry Mr. Bui Xuan Khu said that higher export growth rates of up to 15 % a year- could be achieved if the sector focused on developing infrastructure, training skilled workers, building product design centres and calling for more foreign investment. Mr. Le Quoc An, chairman of the country’s leading State-run garment producer Viet Nam Textile and Garment Group (Vinatex) proposed the sector follow a
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| nine-pronged development plan. Two of the top priorities, he said, would be establishing dedicated raw material centres and expanding retail outlets.
Mr. Diep Thanh Kiet, deputy chairman of the HCM City Textile, Apparel and Embroidery Association said the Government should improve Viet Nam’s investment environment to help the sector attract more foreign partners. He predicted that Viet Nam would become a World Trade Organisation member this year, meaning textile exporters would be free of production quotas in 2007. Mr. An added that comprehensive restructuring of all businesses in the sector would contribute to industry-wide growth, as evidenced by the success of his company’s own corporate restructuring efforts. With export turnover growth reaching 13 per cent last year, Vinatex ranked among the largest garment producers in the world, he said. He added that Viet Nam should also focus on promoting its trademarks. Vinatex Deputy General Director Mr. Vu Duc Giang added the group posted revenue of VND18.3 tln ($1.15 billion) last year, up 11 % from 2004. This year, the group hopes to post revenue growth of 16 %and 10 % higher profits, he added. The country’s second most important export after crude oil, textile sales hit $370 million last month alone, according to the General Statistics Office. 
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