Vietnam investing $300m to develop garment hub
Vietnam's central Thua Thien-Hue Province is understood to be investing more than VND6.6trn (US$295m) on transforming itself into a textile and garment hub.
The move is part of plans for the province's 2016-2020 period, and will focus on developing the domestic market as well as expanding export markets; the latter being a driving force for the sector's development, according to local reports. The investment is expected to give priority to boosting research, product design, brand-building and promotion for the country's apparel and textile industry.
In order to develop the sector sustainably and ensure enough supply of materials for production, the province is working with the Vietnamese government's board of key economic zones to build a centre for supplying apparel materials. The centre will cover 400 hectares in the Phong Dien Industrial Zone, according to Vietnam News. Research is also being conducted into the addition of a modern wastewater treatment system.
The province is currently home to 50 textiles and garment enterprises, many of whom are said to have expressed willingness to expand their factories.
This week, Vietnam labour groups and businesses agreed on a 7.3% increase in the national minimum wage – just a week after proposing a freeze on salaries for the country's garment workers.
The rise, however, is the smallest since a minimum wage system was first introduced in 1997. The industry has concerns it may miss its export target for 2016 due to slowing consumer demand and increased competition.
Help test our new apparel sourcing tool.
- Hard hit Turkish industry is not knocked out
- China leads US apparel sources with falling prices
- "Power of the many" drives change at Otto Group
- Vietnam grows share of US apparel imports in 2016
- US apparel sector braces for potential cost hikes
- US Q4 in brief – Foot Locker, Nordstrom, Carter's
- Bangladesh crackdown has cost garment sector $100m
- Inditex and H&M boycott Dhaka Apparel Summit
- Macy's will "do the right thing", says Lundgren
- JC Penney to close 140 stores amid lower sales
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective
- Technical textile markets: product developments and innovations, December 2016
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Global market review of lingerie – forecasts to 2022