The textiles and garment sector is one of the largest industries in Vietnam and a top foreign currency earner. Its textile and garment export turnover has touched US$2.2 billion in August, an increase of 0.2 per cent from July.

But despite the high turnover the value added of the industry remained relatively low due to its reliance on imported raw materials, said General Secretary of Vietnam Textile and Apparel Association, Dang Phuong Dung.

According to statistics from the Ministry of Industry and Trade's Department for Import-Export the latest figure had raised the sector's export value for the first eight months to US$13.65 billion, a 19.7 per cent year-on-year increase.

Domestic suppliers can meet only one percent of cotton and 20.2 per cent of cloths for the sector.

The sector is under pressure to develop domestic material sources and modernize production models to improve product quality, as several free trade agreements between Vietnam and foreign partners are due to be materialized soon.

Le Tien Truong, director general of Vietnam Textiles and Garment Group, said that local businesses had accumulated experience and a skilled workforce through many years of sub-contracting. They need to now to shift for a modern production model to produce high value added products.