Textile industry ready to face challenges without subsidies
14 Jun '06
1 min read
Textile and garment industry do not need any financial assistance as the country is to join WTO, stated Vietnam Textile and Apparel Association (Vitas).
Vitas urged Government to withdraw Decision 55 which sought to mobilize US$4 billion to accelerate industry growth from 2006-10.
The decision was taken in view of US demand to discontinue subsidies if Vietnam wanted to join WTO as government intervention would be a non-market move.
Industry would have to undergo serious circumstances but at the same time it would learn to face challenges without subsidies, said Le Quoc An, Vitas Chairman.
He emphasised value of foreign investment in the industry's development.
The industry planned to amass finance from domestic and foreign investors, and look for private investment in new facilities and technologies to support growth.
The government had directed the Vietnam Textile and Garment Corp. (Vinatex) to go public and cooperate with foreign investors to accrue funds for expansion.
Last year, textile industry fetched around $2.7 billion from exports to the US, around 3.8 percent of total US textile and garment imports.
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