The Ho Chi Minh City authority has proposed incentives to reduce garment and textile sector's heavy reliance on material improts from China, according to the Saigon Times Daily.
Le Van Khoa, Director of the HCM City Department of Industry and Trade, told a seminar held in HCM City last week that the city government had given approval to Vietnam National Textile and Garment Group (Vinatex) and Saigon Agriculture Incorporation to develop an industrial park for suppliers of materials for the textile and garment sector.
The 80-hectare industrial park in Binh Chanh district, worth more than 100 billion VND, would have its infrastructure development completed in the next three to five years, said Khoa .
The director also said the city government was seeking a number of special incentives including corporate income tax exemptions for four years, 50 percent tax reductions for nine following years, land rent breaks for 20 years and import tariff exemptions for the goods which were not made domestically to support infrastructure developers.
For material producers, the city would offer corporate income tax exemptions for four years, 50 percent tax reductions for nine following years, land rent breaks for 11 years and import tariff exemptions for the machines and equipment which were not made in Vietnam, added Khoa.
“The city government will submit the incentives to central-level agencies via the Ministry of Finance. These incentives will likely be approved as the ministry has okayed similar projects, including a project to develop supporting industries for the textile and garment industry,” Khoa said.
Le Dong Trieu, General Director of Gia Dinh Textile and Garment Company told seminar participants that apparel firms currently have had to import nearly 70 percent of their materials from China.
“Though we have talked much about developing our own material sources to lessen dependence on imports from China for years, the import proportion from China has remained high due to its cheap prices and supply is diverse,” Trieu said.
Gia Dinh Textile and Garment has invested in a 400-billion VND yarn factory with 40,000 spindles at Tan Tao Industrial Park.
Le Quang Hung, Chairman of Saigon Garment Manufacturing Trading Company, said the most concern of the sector was dyeing due to its high costs for treating chemicals and wastewater.
Hung proposed the Government have preference policy for foreign enterprises with financial capability and high technology to invest in textile and garment material production.
Vinatex forecast apparel exports will reach 23.5-24.5 billion USD this year compared to 20.4 billion USD last year.-VNA
Le Van Khoa, Director of the HCM City Department of Industry and Trade, told a seminar held in HCM City last week that the city government had given approval to Vietnam National Textile and Garment Group (Vinatex) and Saigon Agriculture Incorporation to develop an industrial park for suppliers of materials for the textile and garment sector.
The 80-hectare industrial park in Binh Chanh district, worth more than 100 billion VND, would have its infrastructure development completed in the next three to five years, said Khoa .
The director also said the city government was seeking a number of special incentives including corporate income tax exemptions for four years, 50 percent tax reductions for nine following years, land rent breaks for 20 years and import tariff exemptions for the goods which were not made domestically to support infrastructure developers.
For material producers, the city would offer corporate income tax exemptions for four years, 50 percent tax reductions for nine following years, land rent breaks for 11 years and import tariff exemptions for the machines and equipment which were not made in Vietnam, added Khoa.
“The city government will submit the incentives to central-level agencies via the Ministry of Finance. These incentives will likely be approved as the ministry has okayed similar projects, including a project to develop supporting industries for the textile and garment industry,” Khoa said.
Le Dong Trieu, General Director of Gia Dinh Textile and Garment Company told seminar participants that apparel firms currently have had to import nearly 70 percent of their materials from China.
“Though we have talked much about developing our own material sources to lessen dependence on imports from China for years, the import proportion from China has remained high due to its cheap prices and supply is diverse,” Trieu said.
Gia Dinh Textile and Garment has invested in a 400-billion VND yarn factory with 40,000 spindles at Tan Tao Industrial Park.
Le Quang Hung, Chairman of Saigon Garment Manufacturing Trading Company, said the most concern of the sector was dyeing due to its high costs for treating chemicals and wastewater.
Hung proposed the Government have preference policy for foreign enterprises with financial capability and high technology to invest in textile and garment material production.
Vinatex forecast apparel exports will reach 23.5-24.5 billion USD this year compared to 20.4 billion USD last year.-VNA
