Garment and textile industry should invest further in hi-value competitively priced products

Garment sector looks to boost world export standing.The garment and textile industry this year should invest further in hi-value competitively priced products to maintain its position in the world's top five exporters, with a view to making it into the top three, Deputy Prime Minister Hoang Trung Hai told a conference on Monday.

Hai urged the industry to focus on technological innovation, while sourcing the best raw materials and improving the quality of its human resources – including its management.

An adequate support industry was also necessary to ensure the sector's sustainable development, he said.

The sector has set an ambitious target of US$12.7-$13 billion in export earnings this year, according to the Viet Nam National Textile and Garment Group (Vinatex).

It is also aiming to source between 55 and 60 per cent of its raw materials locally to cut import costs this year.

To achieve these goals, the sector planned to focus on finding new export markets, Vu Duc Giang, Vinatex chairman, said.

To reduce reliance on imported raw materials, Giang said Vinatex was trying to encourage farmers to grow more cotton.

However, he said it would be difficult to develop a cotton growing industry that met the requirement of the garment and textile industry because of poor soil quality. He said that farmers should alternate growing cotton with other crops to boost profits.

Vinatex is preparing to establish a raw-materials manufacturing joint stock company with its member firms to work with provinces to earmark farmland for cotton growing. It will be looking for farms of 50ha to 100ha.

Despite a number of difficulties, the garment sector still generated $11.2 billion from exports last year, up 23 per cent year-on-year. The localisation ratio rose from 46-49 per cent. — VNS

Indian Textiles sector calls for stable growth policy

Chennai, Jan 19 (IANS) The Indian government should have a stable policy for the textiles industry which needs to adopt a uniform growth plan, an experts panel said here Wednesday.

A panel discussion on 'Prospects of Textile Exports' was organised by the Confederation of Indian Industry (CII) and Cotton Textiles Export Promotion Council of India (TEXPROCIL.

Amit H Ruparelia, chairman of TEXPROCIL, who opened the discussion, said the textiles and clothing sector is facing various challenges like increase in raw material prices in India and overseas and changes in the government policy last year.

According to Manikam Ramaswami, chairman and managing director of Loyal Textile Mills, the domestic demand is on the rise and the industry should move towards free trade regime away from quota regime, implying export quota for cotton.

T. Kannan, managing director of Thiagarajar Mills, said India's competitive strength comes from its home grown cotton, increased productivity and competitive yarn.

Stressing the need for a stable sectoral policy Ashwin Chandran, joint managing director of Precot Meridian, said the spinning industry is sandwiched between cotton growers and the garment makers.

'The fabric and garment sectors should be ready to pay international prices as cross subsidies would not work in the long run,' he said.

Countering the argument, P. Sundararajan, chief managing director of SP Apparels, charged that the spinning mills are not ready to accept orders in advance so that the garment makers can meet their schedules.

Saumitra Chaudhuri, member of planning commission, urged the industry to come out with medium term plan for textile and cotton segment keeping in mind the domestic needs, logistics and integration with South East and African markets.