Vietnam’s textile and garment industry has become increasingly appealing to large foreign investors who want to seize opportunities with the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) getting effective in January, analysts say. Many German and US companies manufacturing garment items are expanding their presence in the country.
The Vietnam Textile and Apparel Association (VITAS) welcomed many foreign textile and garment producers visiting Vietnam to explore investment opportunities in 2018, said VITAS vice president Truong Van Cam. VITAS is hopeful of more foreign direct investment (FDI) projects to arrive in the coming years.
Germany’s Amann Group, one of the world’s top three leading producers of high-quality sewing and embroidery threads, is expanding its network in Asia to Vietnam with a new factory being constructed on a at the Tam Thang Industrial Park in the central province of Quang Nam. Amann has factories in Bangladesh, China, India, and Indonesia.
The group will produce around 2,300 tonnes of sewing threads per year at the new production site, mainly for apparel and shoe manufacturers, according to a news agency report. The first phase of the project is scheduled to commence in late July.
US-based Kraig Biocraft Laboratories Inc., which manufactures spider silk-based yarn, is working with agricultural cooperatives in Quang Nam to expand mulberry production and develop high-performance silk in Vietnam.
The firm plans to set up a centre for silk research and development (R&D) and grow about 2,500 hectares of mulberry to support spider silk in the country.
The domino effect generated by FDI expansion in the textile and garment sector has also led to a rise in the number of foreign suppliers of machinery and equipment for the industry.
In June last year, ILLIES Vietnam, a member of the German C. ILLIES & Co. and a leading distributor of industrial textiles machinery and equipment, announced expansion of its portfolio in the spinning sector. It now provides machines and spare parts for short-staple yarn-spinning systems for the Rieter Group and the local textile market.
In the first quarter of this year, the company will open a repair centre for mechanical and electrical parts of Rieter machines.
VITAS statistics show nearly $15.9 billion in FDI had been injected into more than 2,090 textile and garment projects in Vietnam by 2017 end. In the first half of 2018, the industry attracted $2.8 billion in FDI. The sector expects to earn $35 billion from exports this year. (DS)
Fibre2Fashion News Desk – India