Vietnam’s Ministry of Industry and Trade (MoIT) has proposed the development of large textile and garment industrial zones (IZs) to attract investment in dyeing, and fabric and yarn production. The 500ha to 1,000ha zones would attract local and foreign investment for high-end products.

The ministry has also proposed that the government provide full support for the building of textile and garment industrial zones located in provinces and cities experiencing socio-economic difficulties in order to create conditions for the success of small and medium startup enterprises, according to the ministry. The proposal also targets the development of transport infrastructure connecting the large industrial zones to ports and logistics centers and reduces transportation costs.

Meanwhile, the Vietnam Textile and Apparel Association (Vitas), has sent a document detailing the difficulties of textile and garment enterprises and proposed solutions, supports the IZ plan to the Government. The association also suggested the government provide credit for enterprises to build waste water treatment centers at those industrial zones.

Textile and garment exports grew in the first half of this year, but local firms face difficulties in obtaining production and export contracts for the second half of 2016, according to the MoIT. The ministry reported a six-per cent export increase in the first half of this year to US$12.8 billion.