The information was unveiled at the third congress of the Vietnam Textile and Apparel Association in Hanoi on May 25.

According to a report delivered by Vitas General Secretary Le Van Dao, in the previous term, Vitas made important contributions to promoting the signing of the Bilateral Trade Agreement between Vietnam and the US – a huge and potential market for Vietnam’s garment and textile products. The garment sector, with Vitas members making up 80 percent of its total production capacity, put in a great deal of effort to expand production, increase investment capital, renew equipment and train human resources. As a result, it has achieved an annual growth of 20 percent in the past five years, ranking second after the oil and gas sector. Notably, in 2006 Vietnam became the world’s 10^th biggest garment exporter after China, the European Union, Turkey, India, Mexico, Hong Kong, Bangladesh, Indonesia and the US.

However, Mr Dao pointed out a number of weaknesses that are hindering the sector’s development. One of these is lacking in materials and skilled workers. He said more than 70 percent of orders have been carried out in the form of manufacturing and domestic makers still depend much on clients, for example from designing to marketing. In addition, poor infrastructure is another cause for high production costs.

Addressing the congress, Vu Duc Giang, Deputy General Director of the Vietnam Garment and Textile Group, said in the coming tenure, the garment sector will continue to become a key export sector, meet the increasing demand for local sales, create more jobs, increase competitive capacity and steadily integrate into the region and the world. It is expected to achieve an annual production growth rate of between 16-18 percent in the 2007-2010 period and between 12-14 percent in 2011-2020 as well as an annual export growth of 20 percent in 2007-2010 and 15 percent in 2011-2020. It also aims to make Vietnam become a regional fashion centre by closely cooperating with other sectors such as trade, culture, and tourism.

Le Quoc An, chairman of the Management Board of the Vietnam Garment and Textile Group approved Vitas’ rules and introduced personnel for the new Executive Board.