In an bid to increase competitiveness of its textile industry, the Vietnamese government is mulling over increasing production technologies before TPP, the most lucrative deal signed between the Pacific Rim countries and the US, comes into force.
A seminar, aimed at evaluating Vietnam’s opportunities and challenges when the Trans-Pacific Partnership agreement (TPP) comes into force, was conducted in Ho Chi Minh City.
Expressing concern for the country’s textile sector, Le Dong Trieu, General Director of the Gia Dinh Textile and Garment Corporation said that to avail the benefits of TPP, the country must immediately develop the apparel and textile support industries by encouraging investors to chip in in sectors that have remained weak so far. He also stressed on the need to develop a complete supply chain for the domestic garment and textile industry.
International Business and Law Academy, Prof Dr Don Nang said “According to the ministry’s statistics, the country has nearly 600,000 enterprises, with more than 90 per cent of them being small and medium-sized and most of them used outdated technologies.”
He also emhasised on the need for technological intervention ahead of the TPP as “productivity, quality and competitiveness of Vietnamese goods and services are far behind that of other TPP member countries.”
He substantiated his statement with figures, stating that little research has been done in Vietnam to innovate technologies and make modern machinery and equipment. He added, “Importation of outdated technologies must stop, and speeding up training and developing skilled human resources and technological workers is an imperative.”
Import of machinery products, which have increased significantly as per a UNDP survey report, account for less than 10 per cent of the country’s total imports, compared to 30-40 per cent for other countries.