On September 12, Ho Chi Minh City hosted the Cotton Day 2017 organised by VITAS and the US Cotton Council International. It exposed enterprises to worldwide cotton demand and consumption trends. CCI granted investment licenses to 12 businesses operating in Vietnam using US cotton.
Vietnamese producers fulfill a mere 0.04 per cent of the total domestic cotton demand. The country imports cotton, with the United States accounting for over 60 per cent of the imports. AAFA and the American Chamber of Commerce in Vietnam held a series of activities in Ho Chi Minh City, including a workshop on product safety and compliance issues, in late October.
The year also witnessed expansion of operations with substantial investments by a few foreign companies. In February, ThreadSol, the pioneer of enterprise material management for sewn products sector, launched its cost-cutting garment solutions IntelloBuy and IntelloCut in Vietnam.
Worldon Vietnam Co. Ltd under the Chinese Shenzhou Group is likely to expand investment in the country as it established a garment-textile production chain there. The knitwear-manufacturing company operationalised the chain’s last project worth $310 million at Dong Nam (South East) industrial park in Cu Chi district, Ho Chi Minh City, in December.
In April, Taiwanese textile major Far Eastern New Century completed its expansion project in Vietnam to manufacture 6,000 tonnes of knitted fabrics per year. Another expansion in its garment unit there saw production expand by a million dozen garments per year. The company has earmarked investments of $760 million in the country, to be spent over three years.
US-based biotechnology company Kraig Biocraft Laboratories Inc., a developer of genetically-engineered spider silk-based fibre technologies, received government approval in October to produce high-tech silk in the Quang Nam province.
After discussions with PetroVietnam Petrochemical and Textile Fiber JSC, a joint venture of PetroVietnam and Vietnam National Textile and Garment Group, both state-owned, India’s Reliance Industries in September decided to collaborate with PetroVietnam to restart the Dinh Vu polyester plant in Haiphong. Reliance will provide personnel for maintenance, material supply and sales operations.
Lack of adequate training for workers and trained engineers remained a major challenge for the sector. Some 300-400 engineers are needed every year by the yarn, fabric and dyeing sectors while universities supply only around 30.
The year also saw domestic fashion brands facing increasing pressure from global brands, which spent high amounts in marketing and advertising campaigns. (DS)
Fibre2Fashion News Desk – India
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