VietinBank extends $7.8mn loan for new textile plant

08 Mar '14

2 min read

The Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank) has signed an agreement for extending 161 billion dong (US$ 7.8 million) to Thien An Thinh Textile and Garment Joint Stock Company for setting up a new textile plant, Viet Nam News reported.

The construction of the new plant in the Phu Bai Industrial Zone in Huong Thuy district of Thua Thien Hue province was started immediately after the signing ceremony.

The new textile plant is being built as part of the Vietnam National Textile and Garment Group’s (Vinatex’s) strategy to meet the export demand for textiles and garments while decreasing raw material imports.

The new textile plant is likely to become operational in early 2015, and will employ 150 people, the report said.

In 2014, Vinatex plans to invest in 57 projects, including 2 on farm cotton, 15 yarn, 8 weaving and 24 garment projects.

Established in 1988 after being separated from the State Bank of Vietnam, VietinBank is one of the four largest state-owned commercial banks of Vietnam.

In the first two months of the current year, Vietnamese garment and textile exports earned $3.2 billion, showing a year-on-year growth of 30.1 percent, according to the Ministry of Industry and Trade statistics.

Vietnamese firms are expecting to bag more export orders this year due to economic recovery in developed countries and prospects of the signing of the trans-pacific partnership (TPP) agreement by June this year.

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