Home / Knowledge / News / Textiles / FDI continues to flow into Vietnam textile sector
FDI continues to flow into Vietnam textile sector
20
Jul '15
Vietnam’s textile and garment sector continues to be a magnet for FDI. While FDI in Vietnam has fallen significantly in the first six months of 2015, it rose sharply in the textile and garment sector, according to the country’s newspapers.

Several domestic and foreign-invested cotton projects are rushing to begin operating in anticipation of competing across borders after Free Trade Agreements (FTAs) go into effect.

At least $1.12 billion out of the $5.58 billion worth of capital inflows went into the textile sector. One of the three largest projects was capitalised at $660 million, the highest ever in the field.

The $660 million project, in a yarn factory in Dong Nai province, was registered by an investor from Turkey. Among others is a $300 million project registered by a British investor in Ho Chi Min City and a $160 million project in Tay Ninh province by a Hong Kong investor.

Prior to that, Vietnam licensed three large projects to investors from China, including $400 million textile and garment complex in Nam Dinh province, $300 million in Quang Ninh province and $200 million in Hai Duong.

Smaller projects are capitalised at tens of millions of dollars. Forever Glorious, a subsidiary of Sheico Group from Taiwan, has committed to invest $50 million in a project to make underwater sportswear.

Gain Lucky Limited belonging to Shenzhou International plans to invest $140 million to develop a fashion design and high-end product development centre.

According to the Vietnam Textile and Apparel Association (Vinatas), once Vietnam officially joins TPP, it would enjoy a zero percent tariff when exporting textile and garment to the US instead of 17-30 per cent tariff.

The biggest problem of Vietnam’s textile and garment industry now is the heavy reliance on imported materials. A report showed it needs to import 50 per cent of input materials to make finished products, mostly from China.

According to the TPP framework, only the products using input materials from TPP member countries will be able to enjoy the preferential tariff of zero percent. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

Courtesy: Pexels

Textiles | On 17th Jul 2018

Trade wars could depress medium-term growth prospects: IMF

The recently announced and anticipated tariff increases by the US and ...

Courtesy: Mat Brown from Pexels

Textiles | On 17th Jul 2018

India increases import duties on textiles & apparel

The Government of India has increased basic customs duty on several...

Luis Quijano

Textiles | On 17th Jul 2018

US varsity student cultivates bacterial cellulose in lab

Luis Quijano, a student at the Liberty University in Lynchburg,...

Interviews View All

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Smarth Bansal
Colorjet India Limited

We would like to venture more companies into the Indian market

Harsh Shah

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

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Paolo Ocleppo
Sandvik Hyperion

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

Marcel Alberts
Eurofibers

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

Wendell Rodricks
Wendell Rodricks

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

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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

Leave your Comments


July 2018

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

news category


Related Categories:

Advanced Search