The Vietnamese government has revealed that it is keen to promote favourable working conditions for overseas investors as the country looks to improve its expanding textiles industry.

Speaking at a forum for overseas investors in Hoi Chi Minh City yesterday, Deputy Industry Minister Bui Xuan Khu said: "The Government will create favourable conditions and will work towards ensuring a stable and profitable business environment."

In a bid to attract more foreign investment into the sector, the Deputy Trade Minister announced that the government was prepared to use its budget as well as official development assistance loans to ensure that material cultivation, waste water treatment, industrial park infrastructure development, training and research were all taken care of.

Khu went on to say that investors would receive a 50 per cent cut in interest on any loan that was taken out through the scheme, with a maximum 12 years of preferential credit and a three-year period of grace. The Government would also be prepared to provide incentives for textile and garment manufacturers in Vietnam to boost their exports to the US, in an attempt to reach the set target of $4-5bn in export revenue by 2005 and $9bn by 2010.