Home / Knowledge / News / Textiles / Vietnam textile sector remains hot destination for FDI
Vietnam textile sector remains hot destination for FDI
24
Aug '15
Vietnam's textile sector ranked second in attracting FDI with more than $1.12 billion out of the nation's total estimated $5.85 billion worth of pledged investment in the first seven months of 2015, according to the government's Foreign Investment Agency. The FDI was designated for manufacturing and processing projects in the textile industry.

Vietnamese media quoted the agency as saying that the figure accounts for more than 20 per cent of Vietnam's total foreign investment inflows between January to July this year.

Leading experts have stressed that foreign-invested transnational companies, particularly those related to yarn manufacturing, are rushing to shore up their supply chains in anticipation of free trade agreements in the offing.

The yarn forward rules of origin do not allow for Vietnam based textile, garment or footwear manufacturers to benefit from the reduced tariffs of the proposed Trans Pacific Partnership (TPP) unless all yarn is manufactured in Vietnam or any of the 11 other TPP nations.

Similar provisions are applicable to other free trade agreements. Experts say the complex rules of origin provisions are driving higher levels of inward FDI into the yarn industry in Vietnam.

Under the provisions of rules of origin, if a Vietnam based textile company imported yarn from China, it could not avail itself of reduced tariffs for product shipments to the US or any of the other TPP member nations.

Turkey has invested $660 million in a fibre producing plant in the southern province of Dong Nai, making it the largest project so far in this field.

The other two projects are a plant producing auxiliary products for textile in Binh Duong province and a fibre plant in Tay Ninh, worth $274 million and $160.8 million, respectively. Another $300 million project was listed by a British investor in Ho Chi Minh City.

Vietnam's free trade agreements with the US, Japan, South Korea and the EU are poised to increase opportunities and advantages for investors.

According to trade projections, garment exports to the EU are expected to rise by 50 per cent in the first year and around 20 per cent for the consecutive years once the Vietnam-EU free trade agreement comes into effect. (SH)

Fibre2Fashion News Desk – India

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Priyanka
Studio Priyanka Rajiv

‘To reinvent the age-old tradition of embroidery to suit demographics and...

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search