Korea, Taiwan big 2 investors in Vietnam's textile sector

Taiwan’s investment is worth $2.5 billion, Hong Kong’s $2.1 billion and Japan’s $789 million, according to a Vietnamese news agency report.

Earlier this year, Japan’s ITOCHU Corporation purchased additional 10 per cent shares of Vietnam National Textile and Garment Group (Vinatex) by investing $47 million, raising its stake to 15 per cent and making it the second-largest stakeholder after the Vietnamese industry and trade ministry.

Other big foreign direct investment projects include the $80-million Nam Dinh Ramatex Textile and Garment Factory by Singapore and the $80-million Ha Nam YKK Factory specialising in zippers and other materials for the garment industry.

Low labour costs and free trade agreements, including the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), have made the Vietnamese garment and textile sector alluring to foreign investors, Giang said.

Once the CPTPP comes into effect, Vietnam can increase shipments to CPTPP member countries, which spend up to $40 billion on garment and textile products annually. (DS)

Fibre2Fashion News Desk – India