A garment factory (Photo: VNA)

The Bank for the Investment and Development of Vietnam (BIDV) commits to offering 2 billion USD to garment firms over the next five years, stated BDIV Chairman Tran Bac Ha during a workshop held on September 30.

Given that China is scaling down its domestic production for export due to increasing labour and land costs, Vietnam is emerging as a potential destination for foreign investors, he said.

This opportunity requires Vietnamese enterprises to restructure if they want to compete and integrate effectively, added Ha.

BIDV’s financial support will be channelled into material area development, trade promotion and market expansion.

Phan Chi Dung, Director of the Light Industry Department under the Ministry of Industry and Trade, said that by joining bilateral and multilateral free trade agreements (FTAs), Vietnam will gain deeper access to the world’s large economies, including the main markets of Vietnamese garments such as the US, the EU, Japan and the Republic of Korea.

He underscored tariff eliminations resulting from FTAs as an expected boost for Vietnamese exports.

According to Industry and Trade Deputy Minister Do Hai Thang, garment-textile is among sectors that will most benefit from FTAs once they take effect.

Opportunities are coupled with major challenges that will face the sector, such as origin specifications and regulations issued by import countries, he said, adding that capital mobilisation is also challenging garment and textile businesses and most of them are small- and medium-sized.

Vietnam has been listed among the world’s top ten garment-textile exporters with an annual average growth rate of 15 percent over the past five years.

In 2014, the country earned 20.9 billion USD from shipping garments and textiles abroad.-VNA