Illustrative Image (Source:VNA)

Hanoi (VNA) - The Government has offered financial support to the Vietnam National Textile and Garment Group (Vinatex) for training the labour force in the textile and garment industry this year.

The funds worth of 63.5 billion VND (2.9 million USD) would come from the State budget for education and training activities, reported the Dau tu (Investment) online. Former Prime Minister Nguyen Tan Dung has asked Vinatex to manage and use the funds under the existing regulations.

That action was initiated under a development strategy for Vietnam's textile and garment industry by 2015 and forward to 2020, approved by the former prime minister in 2008.

Under the strategy, the Ministry of Finance is cooperating with the Ministry of Industry and Trade to build financial mechanisms and policies on supporting the implementation of programmes on fabric production, cotton tree development and human development for the textile and garment industry.

Production expansion
Meanwhile, many local garment companies have focussed all their resources on expanding production and export markets as a large strategy this year.

Dong Nai Garment Corporation (Donagamex) has planned to reduce dividend pay-out ratio from 30 percent to 20 percent for ensuring investment to expand the production scale in some of its key factories this year.

Donagamex Chairman Bui The Kich said the corporation has planned to concentrate its capital on developing production in the Hung Loc Industrial Zone, a complex meant for the textile and garment industry.

It would also increase investment in a project to expand production in the Dinh Quan Garment Joint Stock Company, Dong Binh Joint Stock Company and Dong Phuoc Company.

This year, there were many opportunities for the corporation to develop their production and business further, Kich said. Large export markets such as the United States, the European Union, Japan and the Republic of Korea have increased export orders for the corporation, so it must develop its investment to expand its production scale.

The The Ky Fiber Joint Stock Company has invested 274 billion VND (12.5 million USD) to buy more equipment for increasing the annual output of fibre to 60,000 tonnes in the Trang Bang 4 Factory.

The Vietnam Textile and Apparel Association (Vitas) said domestic textile and garment enterprises have had many investment activities since early this year from small firms to large corporations.

In March, the Thuan Phuong Garment and Embroidery Ltd Company started its textile, dying and garment project in Long An Province with total investment of 600 billion VND in the first stage.

The project was expected to be completed in the first stage by the end of this year, Thuan Phuong general director Mai Duc Thuan said, and added that the company would balance capital to ensure investment in the second stage with total capital of between 1.3 trillion VND to 1.4 trillion VND.-VNA