Decision No. 42/2008/QĐ-BCT Approving the Textile and Garment Industry Development Master Plan to 2015 with a Vision to 2020

Pursuant to …;

Approving the planning for the development of the Textile-Garment Industry of Vietnam until

2015,guiding until 2020

_______________

THE MINISTER OF INDUSTRY AND TRADE

Pursuant to Decree No. 189/2007/NĐ-CP dated December 27, 2007 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Industry and Trade;

Pursuant to Decree No. 92/2006/NĐ-CP dated September 7, 2006 of the Government on the establishment, approval, and management of overall planning for economic and social development, and Decree No. 04/2008/NĐ-CP dated January 11, 2008 of the Government amending and supplementing certain articles of Decree No. 92/2006/NĐ-CP;

Pursuant to Decision No. 36/2008/QĐ-TTg dated March 10, 2008 of the Prime Minister approving the Strategy for the Development of the Textile-Garment Industry of Vietnam until 2015, guiding until 2020;

Considering the proposal of the Vietnam Textile-Garment Group at Report No. 1115/TĐDM-TT/KHĐT dated October 22, 2008 regarding the request for approval of the Planning for the Development of the Textile-Garment Industry of Vietnam until 2015, guiding until 2020;

At the proposal of the Director of the Department of Light Industry.

Pursuant to …;

Article 1.Approve the planning for the development of the Textile-Garment Industry of Vietnam until 2015, guiding until 2020 with the following main contents:

1. Development Orientation

a. Developing the Textile-Garment Industry towards specialization, modernization, ensuring rapid, stable, sustainable, and efficient growth;

b. Maximizing the domestic market while expanding the export market; taking exports as the target for industry development;

c. Developing the fashion market in major cities and urban areas. Strongly relocating textile-garment establishments that heavily rely on labor to rural areas;

d. Diversifying ownership, scale, and types of enterprises; mobilizing all domestic and foreign resources to develop the Textile-Garment Industry of Vietnam;

đ. Developing the Textile-Garment Industry towards specialized investment, modernization, aiming to achieve a significant leap in both quality and quantity of products;

e. Vigorously developing supporting industrial products, producing textile-garment raw materials, reducing import surpluses, and increasing the added value of the industry;

g. Developing the Textile-Garment Industry in conjunction with environmental protection and the trend of labor migration from agriculture in rural areas;

h. Developing human resources in terms of both quantity and quality for the sustainable development of the Textile-Garment Industry of Vietnam.

2. Development Goals

a. General Goal

- Developing the Textile-Garment Industry into one of the key and spearhead industries for export; satisfying increasingly higher domestic consumption needs; creating many jobs for society; enhancing competitiveness and firmly integrating into regional and global economies;

- Ensuring sustainable and efficient development of textile-garment enterprises based on modern technology, quality management systems, labor management, and environmental management according to international standards.

b. Specific Goals

- During the period from 2008 to 2010, average production growth reaches 16% to 18%, average export growth reaches 20%, and export value reaches 12 billion USD in 2010;

- During the period from 2011 to 2015, average production growth reaches 12% to 14%, average export growth reaches 15%, and export value reaches 18 billion USD in 2015;

- During the period from 2016 to 2020, average production growth reaches 12% to 14%, average export growth reaches 15%, and export value reaches 25 billion USD in 2020.

3. Product Development Planning and Layout

a. Strategic Product Planning

- Concentrating on producing fabrics and auxiliary materials for export garment manufacturing. In fabric production, dyeing and finishing processes play a crucial role in ensuring fabric quality to meet market and customer requirements. Investment in fabric production must select technologies that create high-value-added products, reduce raw material costs, and be environmentally friendly.

- Strengthening investment in the production of cotton, synthetic fiber, and auxiliary materials to enhance business efficiency and gradually reduce imports, saving foreign currency;

- Increasing investment in the export-oriented garment industry to take advantage of market opportunities. Garment enterprises need to diversify and upgrade product categories, actively change export production methods from receiving raw materials and delivering finished products to purchasing raw materials outright, and promoting activities to support garment businesses such as design, supply of raw materials, and trade promotion.

b. Regional and Territorial Planning

The planning of the textile-garment industry by region is distributed across various areas with the following main directions:

- Region I: Red River Delta

Planning focuses on making Hanoi the center for services, providing raw materials, technology, fashion designs, and garment factories producing high-value-added products. Production facilities will relocate to industrial zones in provinces such as Hoa Xa (Nam Dinh), Nguyen Duc Canh (Thai Binh), Pho Noi B (Hung Yen), Dong Van (Ha Nam), Vinh Phuc, Bac Ninh, and Ninh Binh. A cluster of export-oriented garment industries and three centralized dyeing and finishing industrial zones will be formed in this area. Investing in a polyester yarn factory with a capacity of 160,000 tons/year in the Dinh Vu Industrial Zone (Hai Phong).

- Region II: Southeastern Region

Ho Chi Minh City is the center for commerce, fashion design, textile technology services, and factories producing high-value-added fashion garments. Relocating dyeing and finishing facilities in Ho Chi Minh City to Long An Industrial Zone and nearby provinces. This region has experienced rapid development in the textile-garment sector in recent years and currently faces significant labor shortages, so new investments are not encouraged to avoid labor pressure.

- Region III: Central Coastal Region

Using Da Nang City as the center to form an export-oriented garment industry cluster and several dyeing and finishing industrial zones in Hoa Khanh (Da Nang) and Quang Tri.

- Region IV: Mekong Delta

Use the city of Can Tho as the center to form an export-oriented textile industrial cluster and a concentrated dyeing and weaving industrial zone in Tra Vinh.

- Area V: Northeast and Northwest regions

Plan to establish a weaving industrial park in Phu Tho, with textile factories located in various provinces. Develop cotton planting areas and raw materials for silk in Son La and Dien Bien.

- Area IV: North Central region

Plan to arrange textile enterprises along National Highway 1, including industrial clusters and points at Bim Son (Thanh Hoa), Vinh (Nghe An), Hue (Thua Thien Hue). Form three concentrated dyeing and weaving industrial zones in Dien Chau (Nghe An), Ha Tinh, and Quang Tri from 2012 to 2015.

- Area VII: Central Highlands region

Focus on promoting specialization in raw materials for weaving such as mulberry trees, cotton, etc., closely linked with processing to create products for both domestic and export markets. Simultaneously develop sewing facilities to serve the domestic market or act as satellites for the textile industry in Areas II and III.

4. System of solutions and policies to implement the planning

a. Policies and solutions regarding investment

Invest in developing the textile and garment industry in conjunction with international cooperation, taking full advantage of the wave of textile and garment industry relocation from developed countries. Encourage all economic sectors to participate in investment.

- Concentrate investment in producing fabrics and auxiliary materials for export sewing. Establish a program to produce woven fabrics to serve the production of export sewing products.

- Develop a program to promote cotton cultivation, prioritizing the construction of irrigated cotton growing areas in provinces with potential.

- Through joint ventures and collaborations with domestic and foreign businesses, build projects to produce artificial fibers, high-quality yarns with new features suitable for market trends.

- Increase investment in the sewing industry to enhance export capacity and create conditions to promote the production of fabric and auxiliary materials to gradually replace imported goods. Relocate sewing enterprises from major urban centers to localities to reduce labor pressure and contribute to the restructuring of the workforce in these areas.

- Build specialized textile and garment industrial parks in key regions to concentrate environmental treatment for new investment projects in the dyeing and weaving industry and relocate dyeing and weaving enterprises causing pollution out of major urban centers.

b. Solutions for supplying raw materials and auxiliary materials

- Establish supply centers for raw materials and auxiliary materials in Hanoi, Ho Chi Minh City, and other large cities to promptly supply raw materials and auxiliary materials to enterprises in the industry.

- Attract foreign investment and mobilize domestic capital to invest in the production of petrochemical products (fibers, yarns, chemicals, dyes, etc.) serving the textile and garment industry to ensure self-sufficiency in raw materials, increase the rate of localization, and added value in textile and garment products.

c. Market policies and solutions

Expanding export markets is a breakthrough in the strategy for developing textile and garment exports, one of the decisive factors for the growth of the Vietnamese textile and garment industry. To expand markets, the state and enterprises need to implement the following solutions:

State management agencies:

- Concentrate all capabilities and opportunities to help enterprises negotiate to expand the textile and garment market internationally;

- Vigorously reform administrative procedures in tax, customs, import-export fields towards implementing a single-window mechanism, simplifying procedures. Strengthen market inspection and control work, combat smuggling and tax evasion;

- Enhance legal advisory services for international trade to help exporting enterprises overcome barriers set by importing countries.

Enterprises in the Textile and Garment Industry:

Organize and expand domestic retail networks, innovate export marketing methods, pay attention to building and promoting product brands, and establish the image of the Vietnamese Textile and Garment Industry as "quality - responsibility - environmentally friendly" in the international market.

d. Solutions for developing human resources

Develop a Human Resource Training Program for the Vietnamese Textile and Garment Industry:

- Organize training for managers, legal officers, technical staff, especially fashion designers, personnel responsible for planning, marketing, and skilled worker training;

- Combine long-term training with short-term training, combine regular training with on-the-job training, and combine domestic training with sending cadres abroad for training;

- Consolidate and expand the specialized textile and garment training system, establish a University of Textiles and Fashion to provide material foundations for implementing training classes.

The Vietnam Textile and Garment Association and the Vietnam Textile and Garment Group are the focal points for coordinating and linking with domestic and foreign training institutions to implement the Human Resource Training Program for the industry.

đ. Solutions concerning science and technology

- Research and apply new technologies and new materials to create differentiated textile products, implement cleaner production programs, energy savings, and apply software in design, production management, and quality control of textile products;

- Vigorously promote research and production of raw materials to replace imported materials, adequately invest in product design and quality testing research, and overcome technical barriers set by importing countries;

- Reorganize specialized textile and garment research institutes towards autonomy and self-responsibility. Enhance consulting, research implementation, technology transfer, design, and creation capabilities of research institutes.

e. Solutions for environmental protection

- Concentrate on treating water pollution sources at dyeing and weaving companies. In textile and garment industrial parks, build centralized wastewater treatment systems meeting national environmental standards;

- Vigorously implement cleaner production programs in textile and garment enterprises, apply environmental standards and product standards, create good working environments for workers according to SA 8000 and ISO 14000 standards;

- Develop and implement a technology renewal roadmap in the textile and garment industry towards material conservation and environmental friendliness;

- Strengthen scientific and technological research capabilities regarding the environment to meet environmental requirements and technical barriers in international economic integration;

g. Financial solutions

- Encourage all domestic and foreign economic sectors to contribute capital for investment. Encourage enterprises to participate in the stock market to create a funding channel (through bond issuance, stocks, and international bonds);

- The State supports part of the budget funds for research activities, training, and investment in infrastructure and technology to enhance the capacity of Research Institutes and training institutions in the Textile and Garment Industry;

Environmental treatment projects of enterprises in the Textile and Garment Industry can borrow state credit funds, ODA funds, and funds from the environmental fund.

Article 2. Implementation

1. The Ministry of Industry and Trade is responsible for leading and coordinating with relevant ministries, branches, and People's Committees of provinces and centrally governed cities to direct the development of the industry according to the approved planning;

2. The Ministries of Planning and Investment; Finance; Agriculture and Rural Development; Science and Technology; Natural Resources and Environment; State Bank of Vietnam; Vietnam Development Bank shall cooperate with the Ministry of Industry and Trade within their respective functions to support enterprises and localities in implementing the approved planning;

3. People's Committees of provinces and centrally governed cities shall concretize the planning for the development of the Textile and Garment Industry within their jurisdictions. Participate with ministries and branches in inspecting and supervising the implementation of the approved planning to ensure consistency and uniformity with the overall socio-economic development planning of the locality;

4. The Vietnam Textile and Garment Association shall cooperate with the Ministry of Industry and Trade to disseminate, popularize, and guide the main contents of the planning to the community of textile and garment enterprises nationwide to have appropriate production and business development orientations and plans in accordance with the planning. Study and propose to management agencies adjustments to policies and mechanisms to develop the textile and garment industry according to the planning;

5. The Vietnam Textile and Garment Group, as the leading enterprise in the industry, is responsible for developing large-scale textile and garment projects. Cooperate with the Vietnam Textile and Garment Association to study and propose to management agencies policies and mechanisms to develop the textile and garment industry according to the approved planning;

Article 3.This Decision takes effect fifteen days after its publication in the Official Gazette.

Article 4. The Head of the Ministry's Office; Heads of Departments: Light Industry, Planning, Finance, Science and Technology, Import-Export, Domestic Market; Chairman of the Board of Directors and General Director of the Vietnam Textile and Garment Group; Vietnam Textile and Garment Association are responsible for enforcing this decision./.