Chinese bank loans $103 mn to textile co in Vietnam

22 Apr '16

2 min read

Bank of China's Ho Chi Minh City Branch signed a $103 million syndicated loan for a Vietnam-based subsidiary of leading Chinese yarn manufacturer Texhong Textile Group on Wednesday, Xinhua has reported.

The loan will be used to broaden and deepen production of Texhong Galaxy Technology Company which was established in the northern province of Quang Ninh with investment capital of $300 million.

Texhong Textile Group, a leading cotton textile manufacturer in the world, has four production bases in Vietnam.

At the syndicated term loan signing ceremony on Wednesday evening, Director of Bank of China's Ho Chi Minh City Branch Wang Hao said that because of the Chinese firms' expanded investment in Vietnam and relevant stakeholders' involvement, the bank has had opportunities to enhance its financial services' performance in the country, contributing to the economic ties between China and Vietnam.

According Wang, bilateral trade between China and Vietnam will surpass $100 billion this year, and Vietnam will overtake Malaysia to become China's biggest trading partner in Southeast Asia.

Vietnam and China are expediting the construction of "One Belt, One Road" and "two belts and one economic corridor," Wang said, adding that Vietnam is also implementing or going to implement many regional and bilateral free trade agreements.

General Director of Texhong Galaxy Technology Company Huang Yiyong said that Texhong will create more jobs for Vietnamese people, contribute more to the Vietnamese state budget and facilitate technology transfer.

Texhong production bases in Vietnam currently have 1.25 million spindles which is 15 per cent of Vietnam's total spindles, Huang said. They produce about 300,000 tonnes of textile each year, or 43 per cent of Vietnam's total textiles production. (SH)

Fibre2Fashion News Desk – India

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