Home / Knowledge / News / Textiles / Ahead of TPP, FDI flows into Vietnam textile industry
Ahead of TPP, FDI flows into Vietnam textile industry
06
Jul '15
Vietnam’s textile and garment industry attracted a majority of the biggest foreign direct investment (FDI) projects approved in the first six months of this year though many provinces had earlier announced they would keep away from such projects as they need lots of labour and pose risks of environmental pollution, a leading Vietnamese newspaper has reported.

Last week, the government of Binh Duong Province awarded an investment certificate to Polytex Far Eastern Co. Ltd. under Taiwan’s Far Eastern Group to develop a $274-million clothing project.

The biggest FDI project in the southern province in the year to date will come up on 99 hectares at Bau Bang Industrial Zone and produce supporting items for the apparel sector. It is designed to have an annual capacity of 43,200 tons of polyester, 127 million square meters of knitted fabric and 96 million square meters of cotton fabric, the newspaper said.

The investor wanted to build the factory in Vietnam to capitalize on the opportunities from the Trans-Pacific Partnership (TPP). The group plans to invest an additional $700 million to $1 billion in the second phase of the project.

Earlier this year, three large-scale projects were approved for the textile and garment sector with two in HCMC and Dong Nai Province, according to statistics of the Foreign Investment Agency under the ministry of planning and investment.

Dong Nai Province approved a $660-million project of Hyosung Istanbul Tekstil Ltd. The largest project in January-June will make industrial fibre at Nhon Trach 5 Industrial Zone.

This is a Turkish-registered project but the actual investor is South Korea’s Hyosung Group. Hyosung Vietnam Co. Ltd. has been a familiar face in the textile and garment sector in the province with total registered capital of over $995 million.

Hyosung decided to expand its investment in Vietnam to enjoy tax incentives and benefit from the US-led TPP, according to industry watchers.

Owing to the project, Dong Nai beat its FDI target for the whole year and ranked second for FDI approvals in Vietnam in the first half of 2015 with a total of $1.03 billion registered for new and operational projects.

Hong Kong’s Worldon Vietnam Co. Ltd. also got approval to carry out a $300-million project in the apparel sector in HCMC. The project covers over 50 hectares at Dong Nam Industrial Zone in Cu Chi District.

With huge textile and garment projects, the nation’s manufacturing and processing sector received the biggest fresh FDI commitment of $4.18 billion in the first six months of this year, making up 76.2 per cent of the total FDI approvals in the period.

The TPP has encouraged many foreign textile and garment firms to boost investments in Vietnam. The yarn-forward rule under the TPP requires that the yarns, fabrics and final garments to be exported within the TPP should be produced in the TPP member countries. So, apparel producers in Vietnam will have to use domestic material or import it from the TPP members instead of China if they want to benefit from the multilateral trade pact. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

New Investment for traditional Myanmar textiles, weavers

Textiles | On 21st Oct 2018

New Investment for traditional Myanmar textiles, weavers

Myanmar Artisans Co Ltd, Turquoise Mountain and the DaNa Facility,...

Pak knitwear exporters plan environmental compliance

Textiles | On 21st Oct 2018

Pak knitwear exporters plan environmental compliance

Pakistani manufacturers and exporters of knitwear garments have...

Courtesy: Hyosung

Textiles | On 21st Oct 2018

Hyosung converting spandex plants into smart factories

Hyosung TNC, the textile and trading unit arm of Hyosung, is...

Interviews View All

Top executives, Textile industry

Top executives
Textile industry

Denimsandjeans India 2018

Siddharth Biyani, Mangalam Industries Pvt Ltd

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Kamlesh Vaghela, RK Textiles

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Shivani Swamy,

Shivani Swamy

The Livinguard Technology is owned by Green Impact Holding AG based in...

Shyam Gupta & Ravi Gupta,

Shyam Gupta & Ravi Gupta

Based out of South Delhi, Gargee Designer's provides bespoke formal and...

Yash Jain & Sanjeev Jain,

Yash Jain & Sanjeev Jain

Divyam Export, launched about 30 years ago, exports to 15 countries,...

Marcel Alberts, Eurofibers

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Justin Chan & Shyam Gollakota, University of Washington

Justin Chan & Shyam Gollakota
University of Washington

A fabric that can store data without any electronics or batteries has been ...

Ayyappa Nagubandi, Broadcast Wearables Pvt Ltd

Ayyappa Nagubandi
Broadcast Wearables Pvt Ltd

Hyderabad-based Broadcast Wearables has come up with the country's first...

Sanjukta Dutta, Sanjukta's Studio

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Sidharth Sinha, Sidharth Sinha

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Varsha Wadhwa, VW

Varsha Wadhwa
VW

Coming from a family that ran a business of jute and linen mills since...

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

Leave your Comments


October 2018

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

news category


Related Categories:

Advanced Search