Vietnam has built multiple industrial parks to accelerate the development of the textile industry

Vietnam’s textile industry has a 20-year history of development. In recent years, the annual growth rate of the textile industry has exceeded 15%. Vietnam’s textile industry is relatively large. In 2014, the textile market revenue was US$28.2 billion and the export volume was US$24 billion. Among them, 46% was exported to the United States, 16% to the European Union, 13% to Japan, and 8% to South Korea. .
For many years, China has been the “leader” in Asia’s textile and apparel industry. However, in recent years, due to rapid rise in labor costs, exchange rate fluctuations and other reasons, China’s textile orders have gradually shifted to Southeast Asian countries. In this context, India and ASEAN countries will become important forces in the global textile industry chain. Among the 10 ASEAN countries, Vietnam is a formal member of ASEAN and the WTO. Vietnam is currently negotiating to join the TPP organization (the Trans-Pacific Strategic Economic Partnership Agreement). If the negotiations are successful, Vietnam will officially become a member of the TPP organization, and Vietnam will export to the United States. Textile and clothing products from countries such as Japan and Japan will enjoy zero tariffs, which are very advantageous.
Vietnam’s textile and clothing industry has great potential for development. Currently, Vietnam has 2.5 million textile industry workers, 6.2 million spinning spindles, fabric output of 1.7 billion square meters, and clothing exports of US$24 billion. It is expected that by 2025, the number of workers in the textile industry will increase to 5 million, spinning will increase to 17.9 million spindles, fabric production will increase to 12 billion square meters, and clothing exports will increase to 40 billion US dollars.
The Vietnamese government has introduced a series of policies to encourage the development of the textile industry and invested in infrastructure. It has also established some large industrial parks to attract investment. For example, there are 1,400 hectares of parks in Nam Dinh Province, 600 hectares of parks in Tay Ninh Province and Quang Ninh Province respectively, and sufficient human resources have also laid a good foundation for the development of Vietnam’s textile industry.
In the development process of Vietnam’s textile industry, in an industrial park, if 1.47 million spindles are invested in spinning, 75 hectares of land will be needed. If the fabric output reaches 1.29 billion square meters, 388 hectares of land will be needed, plus accommodation and sewage treatment. Demand, a total of 901 hectares of land is required. At the same time, considering an effective building utilization rate of 60%, the area of ​​an industrial park requires approximately 1,500 hectares. Now, Vietnam needs about eight industrial parks with an area of ​​1,500 hectares each to meet the development needs of the textile industry.
The RangDong Industrial Park in Nam Dinh City, northern Vietnam, is a project under construction. The goal of the project is to build a world-class textile supply city with an innovative model of hybrid textile supply chain. This project can be summarized as Project 135: 1 backbone, 3 centers, and 5 regions. 1 backbone refers to the main axis of basic development, 3 centers refers to two large industrial service centers and a large cultural exhibition center, and 5 areas include two large industrial parks, a world-class textile culture town, Binhai Lake sports, leisure and tourism area and seaside eco-tourism resort. The total planned area of ​​the industrial park is approximately 2,109 hectares: the first phase is the industrial park, covering an area of ​​584 hectares; the second phase is the industrial park, covering an area of ​​850 hectares; and the supporting area is approximately 675 hectares.