The Decision of the Prime Minister approving the development strategy of Vietnam's Textile, Garment and Footwear industry to 2030, with a vision to 2035

Published on 06 - 01 - 2023

On 29/12/2022, the Prime Minister issued Decision No. 1643/QD-TTg approving the development strategy of Vietnam's Textile, Garment and Footwear industry to 2030, with a vision to 2035.

According to the Decision, the overall objective of the Strategy is to develop the textile, garment and footwear industry as the main export industry of the economy; step up the production of products with high quality and competitiveness in the international market, meeting the needs of the domestic market; maintain its position in the group of leading producing and exporting countries of textile, garment and footwear products in the world. By 2035, Vietnam's Textile, Garment and Footwear industry will develop effectively and sustainably according to the circular economy model; complete the domestic production value chain, effectively participate in the global value chain; develop a number of regional and world brands.

The development strategy of Vietnam's Textile, Garment and Footwear industry to 2030, with a vision to 2035 provides development orientations, specifically:

* General orientation

To develop the textile, garment and footwear industry towards specialization and modernization; improve product structure, focus on developing products with high added value; apply advanced quality management standards and regulations to improve the competitiveness of Vietnam's Textile, Garment and Footwear industry.

To accelerate the shift from manufacturing outsourcing to the forms requiring higher competencies in supply chain management, value chain, design and branding on the basis of appropriately modern technology associated with the system of quality management, labor management and environmental protection according to international standards.

To beef up the investment in production of raw materials, auxiliary materials, supporting industries for the textile, garment and footwear industries; focus on the production of fabrics, artificial fabrics, leather, encourage the production of fabrics from domestically produced yarns in order to reduce imports, positively affect linkages, form a complete supply and value chain in the textile, garment and footwear industry, meeting the requirements of rules of origin of new-generation Free Trade Agreements as well as speeding up the localization process, improving and rapidly narrowing the gap between qualifications and productivity with countries of more developed economies.

To improve the quality of human resources (research, design, engineering, technology, management capabilities) to meet the development requirements of the Industrial Revolution 4.0.

* Industry and field development orientation

+ Development of textiles and footwear fashion: Promote and create cohesion, coordination between manufacturers, product design and development, and business to orient and create fashion trends for the domestic market; develop product branding and national brand; develop Fashion Centers in Ho Chi Minh City and Hanoi Capital; boost the development of textiles and footwear fashion in close association with marketing and communication strategies; textile and footwear fashion products to serve domestic, foreign and tourism needs, in association with the world trend of green products and convenient products.

+ Development of textile and garment industry

- Textile industry (including yarn, weaving, dyeing and fabric finishing): Development and production of synthetic fibers, functional fibers, new and environmentally friendly raw materials, high index and high quality yarns, ... meet the needs of domestic production, gradually reduce imports. To invest in strongly developing knitted fabrics, woven fabrics, technical fabrics; build a number of specialized industrial parks, large specialized complexes of textile, garment and footwear (including yarn chains, textile dyeing, finishing fabrics; tanning); prioritize projects with large capacity from reputable investors, using advanced and modern technology, having a synchronous and closed production process and ensuring compliance with environmental regulations; orientate to attract investment in the Northern region (the provinces of Nam Dinh, Hung Yen, Thai Binh,...); the Central region (Thanh Hoa, Nghe An, Thua Thien Hue, Quang Ngai, Binh Dinh,...) and the South (Binh Phuoc, Tay Ninh, Long An,...).

- Garment industry: Choosing to develop prestigious strategic products in the market, gradually increasing the proportion of high-quality products; shifting production to districts, towns and areas with favorable labor resources and infrastructure systems; focusing on investing in technological innovation in decisive stages such as automatic fabric cutting, new pattern design, and completion of the sewing cycle to increase labor productivity and diversify products.

+ Development of the footwear industry: Shifting from the production of traditional products to the production of middle and high-class products, all kinds of popular and fashionable leather shoes and bags. For products serving domestic demand, focus more strongly on developing fashion models, researching and applying new materials, paying attention to research on market demand; develop a number of specialized complexes in the North, Central and South regions (in combination with the textile and garment industry) and specialized industrial clusters with convenient locations and synchronous infrastructure systems, form a supply chain network from research and development to production of raw materials and auxiliary materials, production and distribution of products, with priority given to attracting investment in key economic regions; attract investment in tanning projects with modern, advanced and environmentally friendly technology in industrial parks and specialized industrial clusters.

+ Supporting industry: Directing supporting industry projects, producing raw materials and auxiliary materials to focus on developing in areas with high density of textile, garment and footwear enterprises in some northern localities (Hung Yen, Nam Dinh, Thai Binh, Quang Ninh,...), the central region (Thanh Hoa, Nghe An, Thua Thien Hue, Quang Nam, Quang Ngai, Binh Dinh,...) and the South (Binh Phuoc, Tay Ninh, Ba Ria - Vung Tau, Tra Vinh, Long An, ...), to reduce transportation costs, lower costs and incraese the competitiveness of products.

To organize the implementation for the People's Committees of the provinces and centrally-run cities:

- To concretize the development strategy of Vietnam's Textile, Garment and Footwear industry in the province and city; coordinate with ministries and sectors to monitor, evaluate and periodically report on the implementation of the Strategy and related programs to ensure the uniformity and consistency with provincial and city plannings and master plans, plans of other related economic sectors.

- To boost investment attraction, create favorable conditions for land fund, settle procedures for land, site clearance,... quickly implement investment projects in the textile, garment and footwear industry according to orientations of the Strategy.

- To annually allocate funds for local industrial promotion to serve the development of the textile, garment and footwear industry, focus on vocational training and application of advanced technological equipment for production.

In addition, the Decision specifies such contents as: the development standpoint, specific targets, solutions and organization of implementation.

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