As Việt Nam is no longer an attractive destination for labour-intensive, land-intensive or low-productivity industries, the shift in investment is seen as a natural and expected development.
Under the development strategy approved by the Government, for the long term, the garment, textile, leather and footwear sectors are still key export industries of the economy.
Textile, garment and footwear industries are still facing many difficulties due the COVID-19 pandemic, and unable to recover production and business in the short term.
Prime Minister Nguyen Xuan Phuc requested garment-textile and footwear sectors promote the building of Vietnamese brands and supply chain linkages during a working session in Ha Noi on Monday.
The annual fair houses over 200 booths featuring leading fashion brands in textile and garment, leather footwear, cosmetics, jewellery as well as beauty care services in a total area of 4,000sq.m.
By the year-end, local garment industry is eyeing 6.5 per cent to 7 per cent export growth to more than $30 billion, while the footwear sector hopes to bring home $18 billion, a yearly rise of 10 per cent.
Textile and garment industries, as well as leather and footwear,
recorded high growth in production and exports during the first five
months of this year.
HCM City-based companies have asked for preferential policies,
including credit and tax incentives, to enable them to produce feedstock
locally and reduce their imports.