Vietnam textile industry ready to stand on its own feet

Vietnamese textile and garment companies are prepared to forgo subsidies since the country is set to become a member of the WTO, the industry association has said. 

The Vietnam Textile and Apparel Association (Vitas) made the statement amid government plans to revoke Decision 55 which sought to mobilize US$4 billion to speed up the industry’s growth in the 2006—10 period.

The decision followed a US demand that all subsidies should be scrapped if Vietnam wanted to join the WTO since any government intervention would be a “non-market’ move.

The US is worried that a robust export growth in Vietnam-made clothing products will impact its own industry after Vietnam enters the WTO.

Le Quoc An, Vitas chairman, said the industry would face serious difficulties but would learn to stand on its own feet once subsidies were gone.

The industry planned to mobilize money from local and foreign investors, and seek private investment in new facilities and technologies to aid growth.

He underlined the importance of foreign investors in the industry’s development.

The government had directed the Vietnam Textile and Garment Corp. (Vinatex), the industry’s largest player, to go public and cooperate with foreign investors to raise funds for expansion.

Last year the textile industry earned some $2.7 billion from exports to the US, around 3.8 percent of total US textile and garment imports.

(Source: Thanhniennews)