The Vietnamese government will spend $3 billion to raise the self-sufficiency ratio in cloth. Against this background, even though the export of textile products has been increasing in Vietnam, it has not lead to big profits due to the small domestic production of cloth.

In Vietnam, the import of cloth has been increasing with recent increases in the export of textile products to Europe. The export of textile products in 2007 amounted to $7.8 billion, and in contrast, the import of cloth was $3.98 billion, up by 33.6% from the last year. The largest share of imports was from China, which was $1.35 billion, followed by $820 million from Korea and $730 million from Taiwan.

To solve the situation, the Vietnamese government is planning to invest $2.27 billion in spinning and weaving and dyeing projects, $180 million in raw material supply expansion projects, $443 million in garment projects and $200 million in establishing a trade center and human resource development, a total of $3 billion.