Taiwan's government is to spend NT$2 billion upgrading the country's textile industry over the next five years.

An official from the Department of Industrial Technology said the move was necessary to improve the sector's competitive edge.

The official pointed out that there are now about 7,000 textile producers in Taiwan, with annual production totalling NT4460 billion.

However, 90 per cent of the profits come from low value-added sectors, which will face increased competition from key exporters such as China when quotas expire next year.

As a result, the industry is plans to increase production of value-added industrial textile products, such as fireproof garments and protective wear.

The investment is aimed to help Taiwan's textile industry research into applied technologies.

The country hopes to increase its production of industrial textile products by 20 per cent in the coming years.