A group of garments, footwear and wood processing enterprises in Ho Chi Minh City and the southern province of Binh Duong will link up with Italian businesses in the same sectors to create a production and distribution chain.

According to Ho Sy Hung, head of the Enterprise Development Department under the Ministry of Planning and Investment, this is part of a 3 million EUR small and medium sized enterprise (SME) development project funded by the Italian government that aims to increase the added value of selected businesses.

Vietnamese and Italian businesses will work independently, but support each other in several steps of the production process to produce high-quality goods.

“This will help to increase the competitiveness of our businesses,” said Hung.

This combination will raise the prestige of Vietnamese garments businesses, said the Chairman of the Vietnam Textiles and Garments Association, Le Quoc An.

That garments, footwear and wood processing have been selected to get the project underway comes from the fact that these three sectors are ideal for the development of SME clusters in Vietnam.

According to the figures, Ho Chi Minh City has the largest number of workers in the footwear and garments industries with 30 percent of the country’s total, while 23 percent of the workers in the wood processing sector are in Binh Duong province.

Statistics also show that SME clusters in the south have a higher production rate and better industrial relations./.