Ho Chi Minh, State textile and garment giant Vinatex launched its 46th outlet in Ho Chi Minh City as part of its plans to become the country’s leading apparel retailer by 2010. The 2,000 sq.m VinatexMart was built at a cost of VND6 billion (US$372,763) in district 10.
Vinatex plans to have 80 outlets by 2010. The company stocks 40,000 different textile garment and textile items procured from all over the world.
In the first half this year the group posted a turnover of VND11 trillion ($683 million), a year-on-year rise of 8.4 percent. It targets exports of $1.55 billion this year, up 18 percent from last year, mainly to the EU and the US.
Vinatex said it needed investment of some $4 billion to produce woven fabric for garment makers. The funds would be raised from different sources where Vinatex’s affiliates are listed and it would also seek capital sources in Taiwan and Korea.
Under the plan, submitted recently to the Ministry of Industry, Vinatex targeted to produce 500 million sq.m of woven fabric in 2010 serving manufacturing enterprises to export and one billion sq.m of cloth by 2015.
The industry’s woven fabric capacity reached 600 sq.m, only 125 sq.m of the figures serving exports, making up 20 percent of the sector demand. Thus the garment industry had to import more than $2 billion in woven fabric.
To realize the target, the domestic garment and textile industry will focus on constructing large-scale weaving and dyeing centers, and encouraging dyeing facilities to operate under the form of joint stock companies or business cooperation contracts instead of ongoing small-scaled facilities.
Vinatex is set to sell shares publicly in 13 wholly-owned subsidiaries to raise more funds for its projects by the end of 2007. Six went public last year, and the rest in this year. Vinatex itself would auction off shares in 2008.
Vietnam’s apparel exports are set to grow by 27 percent this year to $7.3 billion. The US is the largest importer of Vietnamese apparel-related products and materials, accounting for 55 percent of Vietnam’s textile shipments.