FDI pours into Vietnam's Binh Duong province
The garment and textile sector in Vietnam's southern province of Binh Duong has attracted more than $400 million in foreign direct investment (FDI) after the signing of the Trans-Pacific Partnership (TPP) in February, the Vietnamese News Agency has reported.
Apart from the latest rush of FDI, current active projects in the country had already drawn billions of dollars of investments.
According to the provincial Department of Industry and Trade, most of new apparel projects focus on support industry and fabric material, a positive signal to support the domestic garment-textile industry.
Vice Chairwoman of the Binh Duong Garment-Textile Association Phan Le Diem Trang said domestic businesses have received numerous orders from traditional markets such as the US and Europe for 2016.
The advantages from free trade agreements (FTA) and TPP deal are forecast to bring more orders to domestic apparel enterprises, she said, adding that the increasing flow of FDI in Vietnam and Binh Duong in particular is a huge benefit, which helps increase the export proportion for Vietnam.
However, the TPP regulations on the origin of the products are posing a number of challenges for domestic investment enterprises.
Trang pointed to difficulties facing domestic firms such as lack of capital and human training which could push local businesses to work for companies pumping in FDI.
She also expressed concern over the provincial business community is still seeking connectivity in TPP integration while hundreds of FDI businesses have taken a quick step to dominate and benefit from business in Vietnam.
Garment-textile is currently one of the 26 key export industries in Binh Duong which has over 560 apparel firms. Since the beginning of 2016, the sector has exported over $550 million worth of goods, a year-on-year increase of 9 per cent. In 2015, the local export turnover surpassed $2 billion partly thanks to the garment sector. (SH)
Fibre2Fashion News Desk – India