Workers at a factory of Garment 10 Corporation - Joint Stock Company, a member of the Viet Nam National Textile and Garment Group (Vinatex). The group is expected to invest its capital in material production projects. — Photo vinatex.com

HA NOI (Biz Hub) — The Viet Nam National Textile and Garment Group (Vinatex) will invest most of its capital in material production projects in a move to reduce dependence on imports.

Vinatex General Director Le Tien Truong said yesterday that Vinatex is investing in 51 projects, 29 of which are of yarn and knitting production.

This year, Vinatex is set to produce more than 100 million metres of clothing, which is expected to increase to 300 million metres in 2016, when a number of new yarn and knitting production projects will become operational.

Earlier, Vinatex had to import roughly 37 per cent of its materials required for production.

Truong said after equitisation, Vinatex will operate as a joint-stock company from February 1, and the firm will offer shares in 2017.

Viet Nam's textile and garment industry witnessed good growth in exports last year, reaching US$24.5 billion, up nearly 16 per cent compared to 2013.

The textile and garment sector is expected to benefit from several free-trade agreements (FTAs) that are likely to take effect, and it aims to export goods worth $28 billion to $28.5 billion in 2015.

Owing to the advantages accruing from the FTAs, the textile industry could double production in 10 years. However, textile enterprises need to be well-prepared to seize the opportunity, especially to increase the domestic material production.

Besides the 12-nation Trans-Pacific Partnership (TPP) agreement, which includes the United States and Japan, Viet Nam has either signed or in the final stages of negotiations for the FTA with the European Union, South Korea and the Customs Union of Belarus, Kazakhstan and Russia. — VNS