The Ho Chi Minh City authority has proposed incentives to reduce garmentand textile sector's heavy reliance on material improts from China,according to the Saigon Times Daily.
Le Van Khoa, Director of theHCM City Department of Industry and Trade, told a seminar held in HCMCity last week that the city government had given approval to VietnamNational Textile and Garment Group (Vinatex) and Saigon AgricultureIncorporation to develop an industrial park for suppliers of materialsfor the textile and garment sector.
The 80-hectare industrialpark in Binh Chanh district, worth more than 100 billion VND, wouldhave its infrastructure development completed in the next three to fiveyears, said Khoa .
The director also said the city government wasseeking a number of special incentives including corporate income taxexemptions for four years, 50 percent tax reductions for nine followingyears, land rent breaks for 20 years and import tariff exemptions forthe goods which were not made domestically to support infrastructuredevelopers.
For material producers, the city would offercorporate income tax exemptions for four years, 50 percent taxreductions for nine following years, land rent breaks for 11 years andimport tariff exemptions for the machines and equipment which were notmade in Vietnam, added Khoa.
“The city government will submit theincentives to central-level agencies via the Ministry of Finance. Theseincentives will likely be approved as the ministry has okayed similarprojects, including a project to develop supporting industries for thetextile and garment industry,” Khoa said.
Le Dong Trieu, GeneralDirector of Gia Dinh Textile and Garment Company told seminarparticipants that apparel firms currently have had to import nearly 70percent of their materials from China.
“Though we have talkedmuch about developing our own material sources to lessen dependence onimports from China for years, the import proportion from China hasremained high due to its cheap prices and supply is diverse,” Trieusaid.
Gia Dinh Textile and Garment has invested in a 400-billion VND yarn factory with 40,000 spindles at Tan Tao Industrial Park.
LeQuang Hung, Chairman of Saigon Garment Manufacturing Trading Company,said the most concern of the sector was dyeing due to its high costs fortreating chemicals and wastewater.
Hung proposed the Governmenthave preference policy for foreign enterprises with financialcapability and high technology to invest in textile and garment materialproduction.
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 theHCM City Department of Industry and Trade, told a seminar held in HCMCity last week that the city government had given approval to VietnamNational Textile and Garment Group (Vinatex) and Saigon AgricultureIncorporation to develop an industrial park for suppliers of materialsfor the textile and garment sector.
The 80-hectare industrialpark in Binh Chanh district, worth more than 100 billion VND, wouldhave its infrastructure development completed in the next three to fiveyears, said Khoa .
The director also said the city government wasseeking a number of special incentives including corporate income taxexemptions for four years, 50 percent tax reductions for nine followingyears, land rent breaks for 20 years and import tariff exemptions forthe goods which were not made domestically to support infrastructuredevelopers.
For material producers, the city would offercorporate income tax exemptions for four years, 50 percent taxreductions for nine following years, land rent breaks for 11 years andimport tariff exemptions for the machines and equipment which were notmade in Vietnam, added Khoa.
“The city government will submit theincentives to central-level agencies via the Ministry of Finance. Theseincentives will likely be approved as the ministry has okayed similarprojects, including a project to develop supporting industries for thetextile and garment industry,” Khoa said.
Le Dong Trieu, GeneralDirector of Gia Dinh Textile and Garment Company told seminarparticipants that apparel firms currently have had to import nearly 70percent of their materials from China.
“Though we have talkedmuch about developing our own material sources to lessen dependence onimports from China for years, the import proportion from China hasremained high due to its cheap prices and supply is diverse,” Trieusaid.
Gia Dinh Textile and Garment has invested in a 400-billion VND yarn factory with 40,000 spindles at Tan Tao Industrial Park.
LeQuang Hung, Chairman of Saigon Garment Manufacturing Trading Company,said the most concern of the sector was dyeing due to its high costs fortreating chemicals and wastewater.
Hung proposed the Governmenthave preference policy for foreign enterprises with financialcapability and high technology to invest in textile and garment materialproduction.
Vinatex forecast apparel exports will reach 23.5-24.5 billion USD this year compared to 20.4 billion USD last year.-VNA
