The Da Nang branch of Bank for Foreign Trade of Vietnam (Vietcombank) has signed an agreement with Hoa Tho Textile Stock Corporation to finance 207 billion dong for expansion of Hoa Tho Garment Factory I.
The expansion project would be carried out in two phases. While Phase I would involve investment of 65 billion dong, Phase II would see investment of 142 billion dong.
More than 67 percent of the new investment would be utilized for purchasing and installing modern machinery and equipment from Japan and Europe, to ensure production and supply of high-quality products for both the domestic and export markets.
Speaking at the signing ceremony, Nguyen Duc Tri of Hoa Tho Textile said the project would not only facilitate market expansion for Hoa Tho, but also help it increasing domestic market share.
The project is in accordance with the growth strategy for 2011-20, approved by the Vietnam Textile and Garment Group (Vinatex).
The new production lines would have capacity to produce about 800,000 men’s high-end suits each year, and is expected raise the revenue of Hoa Tho Textile to 2,750 billion dong in 2014.
Likely to become operational in the second-half of this year, the project is likely to create 800 new jobs.