Lack of dyeing link Vietnam many measures to improve the textile and garment industry chain

Release time:

2019-08-23

As the second largest export industry in Vietnam, the textile and garment industry has shown double-digit growth and has always attracted a large number of investors. However, the upstream industries of the industrial chain, such as weaving, dyeing and finishing, are difficult to be allowed to invest due to local concerns about environmental pollution. This has led to the unbalanced development of the textile and garment industry in Vietnam and the lack of fabric production links. Therefore, the development of the textile industry is restricted and the added value of products is not high.

In 2018, Vietnam's textile and garment industry exported about US $36.2 billion, but imported raw materials and accessories alone amounted to US $23.6 billion, of which imported fabrics were about US $12.8 billion and various textile accessories were about US $5.47 billion.

Reported that due to the lack of dyeing links, 2/3 of the yarn produced in Vietnam must be exported. The EVFTA requirement for textiles "local production of cloth" and the CPTPP requirement for "local production of textile yarn" will promote the Vietnamese textile and garment industry to turn to invest in these upstream industries.

According to the Vietnam Textile Association (VITAS), in the past few years, some projects dedicated to the production of fabrics have been rejected by local governments. The dyeing process does have the risk of polluting the environment, but if the project is also put into the wastewater treatment process, it should be approved. In this regard, the general office of the government has issued a document to the Ministry of industry and trade, pointing out that the prime minister of the government has asked the Ministry of industry and trade to coordinate with various localities to solve this industry problem.

Vietnam also recently announced a new "Made in Vietnam" standard. According to the preliminary plan, the added value of domestic processing in Vietnam must account for more than 30% of the value of exported products, and imported products must be completely processed into other products before they can be regarded as "Made in Vietnam". Products that only pass Vietnam's re-export will not be made in Vietnam. In the future, Vietnam will strengthen the inspection and certification of the certificate of origin of goods.

Internationally support the promotion of the upstream construction of Vietnam's domestic industrial chain, strengthen the management of import and export activities, foreign investment, etc., investigate and strictly deal with evasion of trade defense and fraud in the origin of goods. Through a number of measures, Vietnam's textile and garment industry chain will be more perfect and more balanced in the future.

(Source: China Cotton Association)

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