Work on new yarn plant in Vietnam to start this month
July 08, 2013 - Vietnam
The construction of the Phu Hung yarn plant, being set up with a total investment of about US$ 12 million, would begin in Vietnam’s central province of Thua Thien-Hue this month.
The plant being set up in Phu Bai Industrial Park is expected to be ready and put into commercial operation by August next year, Viet Nam News reported.
The plant would have a capacity to produce about 240 tons of pure cotton yarn in a month and is likely to create about 200 new employment opportunities.
The yarn plant is being constructed as a part of the strategy for development of the country’s garment industry, approved by the Prime Minister and the Ministry of Industry and Trade for the Central Region, according to the Vietnam National Textile and Garment Group (Vinatex).
The Central Region, which includes the provinces of Da Nang, Thua Thien-Hue and Quang Nam, is the major producer of garments and the yarn plant would help the region stay competitive, especially after various free trade agreements (FTAs) are signed, according to Vinatex deputy chairperson Le Tien Truong.
Meanwhile, Vinatex has entered into a joint venture agreement with Japan’s Itochu Group to develop support industries for Vietnam’s garment sector.
Last month, Hong Kong-based TAL Group announced its intention to invest US$ 200 million for the production of garments and textiles in Vietnam.
Since last year, several foreign textile producers are exploring investment opportunities in Vietnam, especially in textiles dyeing and material production, Mr. Truong said.
China’s Texhong Corporation and Sunrise Textile Co., Japan’s Toray International and Mitsui Corporation, and Austria’s Lenzing, are among the major companies that have shown interest to form joint ventures with Vinatex, he added.
It is estimated that Vietnam spent more than US$ 5 billion on import of raw materials for the garment and textile sector during the first half of the current year, for making exports of around US$ 8 million.