Decision No. 161/1998/QD-TTg on approving the overall planning for the development of the Textile - Garment Industry until 2010

 DECISION

Regarding the approval of the overall planning for the development of the Textile - Garment Industry until 2010

PRIME MINISTER

Pursuant to the Government Organization Law dated September 30, 1992;

Pursuant to the Charter on Investment Management and Construction issued together with Decree No. 42/CP dated July 16, 1996 and Decree No. 92/CP dated August 23, 1997 of the Government;

Considering the proposal of the Ministry of Industry (document number 1676/KHĐT dated May 25, 1998) and the review report of the Ministry of Planning and Investment (document number 5753BKH/CN-VPTĐ dated August 17, 1998),

DECISION:

Article 1. Approves the overall planning for the development of the Vietnamese Textile - Garment Industry until 2010, established by the Ministry of Industry, with the following main contents:

1. Objectives:

The goal of developing the Textile - Garment Industry until 2010 is to focus on exports to increase foreign currency revenue, ensure balance for debt repayment and expanded reproduction of production bases within the industry, meet domestic demand in terms of quantity, quality, variety, and price; gradually transform the Vietnamese Textile - Garment Industry into a leading export sector, contributing to economic growth, job creation, and the implementation of the policy of industrialization and modernization of the country.

2. The perspective of planning the development of the Vietnamese Textile - Garment Industry until 2010 includes the following contents:

- On technology investment:

Harmonize deep investment, renovation, expansion, and new investment. Quickly replace outdated equipment and technology, upgrade equipment that still has exploitable capacity, supplement new equipment, innovate technology and equipment to improve product quality.

- On consumption markets:

Foreign market: consolidate, maintain, and develop trade relations with traditional markets, penetrate and create momentum for development in potential markets and regional markets. Gradually integrate into the AFTA regional economic market and the WTO global economic market.

Domestic market: meet the demand for textile-garment products in the domestic market through product quality, lower costs, diversification of products, catering to consumer preferences, and being suitable for purchasing power at all levels of society.

- Investment capital and enterprise restructuring:

Diversify sources of capital and methods of raising investment capital, leverage internal resources and expand direct foreign investment for development. Quickly implement shareholding of garment enterprises, gradually implement shareholding of some textile enterprises to meet the new requirements of the industry.

- Arrangement of production base planning:

Based on the current situation, consolidate and develop three textile industrial centers nationwide in the Southeast region and the Mekong Delta, the Red River Delta, and the Central Coast region. For the garment industry, widely distribute across the country, prioritizing the development of export-oriented garment factories in areas with favorable transportation conditions, close to ports and airports.

- Direction for raw material development:

Increase the proportion of domestically produced garment accessories in exported products to enhance the added value of the garment industry. Develop cotton and silk mulberry regions to ensure raw materials for weaving, reduce product costs, and narrow down raw material imports.

- Training of technical staff:

Develop various forms and levels of training to increase the number of technical staff to meet the development needs of the Textile - Garment Industry.

3. Indicators of the development planning.

- Production and export indicators:

- Raw material development indicators:

- Indicators for total investment capital requirement by 2010:

Unit: Million USSD

The indicator for the total investment capital requirement by 2010 is a guideline; the Ministry of Industry will base this guideline and the actual conditions of each period to make appropriate calculations and adjustments.

Article 2. Division of responsibilities:

- The Ministry of Industry is the management ministry responsible for coordinating with relevant ministries, sectors, and provincial people's committees to organize the implementation of the overall planning for the development of the Vietnamese Textile - Garment Industry according to the contents recorded in Article 1 of this decision.

- The Ministry of Industry shall take the lead and work with the Ministry of Agriculture and Rural Development, Vietnam Textile - Garment Corporation, and related localities regarding the planning and implementation methods for building and developing cotton and mulberry silk regions, as well as the procurement and processing of these raw materials.

- The Ministry of Industry shall coordinate with the Ministry of Planning and Investment, the Ministry of Construction, relevant provincial people's committees, and Vietnam Textile - Garment Corporation to determine the list, location, and scale of each project requiring new investment as well as renovation and expansion in each phase consistent with the production area orientation to implement.

- The Ministry of Trade, the Ministry of Industry, the Ministry of Finance, the State Bank of Vietnam, the Ministry of Planning and Investment, and Vietnam Textile - Garment Corporation shall proactively develop plans to expand new export markets, seek capital both domestically and internationally including preferential loans to meet the industry's investment capital needs.

- The Ministry of Industry and Vietnam Textile - Garment Corporation shall draft and submit to the Prime Minister plans and measures for restructuring the Textile - Garment Industry from now until 2000, including a specific list of enterprises to be implemented under shareholding.

Article 3. The Ministry of Industry and Vietnam Textile - Garment Corporation, based on the goals, perspectives, and indicators of this planning, shall develop five-year investment development plans in accordance with the country's economic and social situation.

Article 4. This Decision takes effect fifteen days after its issuance. Relevant ministries such as the Ministry of Planning and Investment, the Ministry of Construction, the Ministry of Industry, the Ministry of Trade, the Ministry of Finance, the Ministry of Education and Training, the Ministry of Labor, Invalids and Social Affairs, the State Bank of Vietnam, provincial people's committees, and Vietnam Textile - Garment Corporation are responsible for implementing this Decision.