Home / Knowledge / News / Apparel/Garments / FDI inflow in Vietnam textile & garment sector declines
FDI inflow in Vietnam textile & garment sector declines
20
Jul '12
There has been a decline in Foreign Direct Investment (FDI) flowing in into the textile and garment sector of Vietnam over the past few years, Vietnam Textile and Apparel Association (VITAS) has said.
 
From 2000 to 2008, FDI in Vietnam’s garment and textile sector had peak annual average of US$ 460 million. However, the investment declined in the past three years.
 
Vietnamese apparel and textile attracted foreign investment worth US$ 185 million and US$ 169 million during 2009 and 2010, respectively, while last year it attracted around US$ 450 million.
 
VITAS attributed the low FDI inflow to the global financial slump. It added that foreign investors paid more attention to garment making, which necessitates lesser investment capital and could do with obsolete technologies.
 
The focus on production of raw inputs like fabrics and processing such as dyeing that requires high capital investment and high-tech technologies and extends no assurance of immediate returns on investment, remained low, VITAS said.
 
According to Le Quoc An, former Chairman of VITAS, the situation is mainly attributable to the fact that Vietnam still lacks industrial zones specializing in fibre and textile production and dyeing activities on a scale large enough that it can draw leading overseas firms for investment.
 
Vietnam earned US$ 14 billion in textile and apparel exports during last year, but was required to spend about US$ 9 billion to import raw inputs and accessories.
 
Heavy dependence on imported raw inputs and accessories is the biggest weakness of Vietnamese clothing industry, said Mr. An. However, he added that it is now the good time for the industry to decide its investment priorities and strategise for ensuring firm growth in times to come.
 
Once the sector gets its priorities right, big foreign investors would automatically get attracted to the country, he added.
 
Mr. An said that entry of foreign players in the country’s garment sector, particularly since adoption of more liberal economic policies by the country, has helped the country to establish itself as a major apparel exporter. Vietnam now occupies eighth position amongst world’s apparel exporting countries, and is the fourth biggest apparel exporter catering to the US market.
 
Hong Kong, South Korea, Japan, Taiwan, Germany and Thailand are the leading investors in the Vietnamese textile and garment sectors.
 

Fibre2fashion News Desk - India


Must ReadView All

Uzbekistan, S Korea to launch textile techno park in Sept

Textiles | On 19th Feb 2018

Uzbekistan, S Korea to launch textile techno park in Sept

Uzbekistan and South Korea plan to launch a modern textile techno...

3 African nations may face AGOA sanctions if Mitumba banned

Apparel/Garments | On 19th Feb 2018

3 African nations may face AGOA sanctions if Mitumba banned

Rwanda, Tanzania and Uganda will face US trade penalties, including...

India’s Uttar Pradesh woos Tiruppur knitwear industrialists

Apparel/Garments | On 19th Feb 2018

India’s Uttar Pradesh woos Tiruppur knitwear industrialists

Two top Uttar Pradesh government officials visited Tamil Nadu’s...

Interviews View All

Shiladitya K Joshi
Truetzschler India Private Limited

India ITME provides a platform to interact with our stakeholders

Top executives
Textile industry, India

Such fairs are a must for industry to showcase new innovations

Dinaz Madhukar
DLF Emporio and DLF Promenade

‘Each event and promotion is planned out keeping in mind the business of...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Riddhi Jain

Conceived in Europe and curated in New Delhi, NeceSera is a...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

February 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
70.3%
No
12.9%
Skip
16.8%

Total Votes: 101

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
63.4%
No
29.7%
Skip
6.9%

Total Votes: 101

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
88.1%
No
8.9%
Skip
3.0%

Total Votes: 101

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
83.2%
No
7.9%
Skip
8.9%

Total Votes: 101


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search