Government ends support for textile and garment industry
Nhan Dan, Vietnam
The Prime Minister has decided to end support for the textile and garment industry to ensure equality in competition, and meet the requirements of international economic integration in new situation, particularly Vietnam’s accession to the World Trade Organisation.
Decision 126/2014/QD-TTg issued on May 30 invalidates Decision 55/2001/QD-TTg dated April 23, 2003 which ratified the industry’s development strategy and several measures to support the strategy’s implementation.
Decision 55 included financial support for projects to develop cotton-growing areas and infrastructure for textile industrial zones, and credit preferences given to projects in certain areas.
Under Decision 55, total investment capital for the industry reached VND 35 trillion (US $2.19 billion) in the 2001-2005 period, and VND 30 trillion (US $1.87 billion) in 2014-2014. The development of cotton-growing areas until 2014 requires VND 1.5 trillion (US $93.7 million). (VNA)
