FDI continues to flow into Vietnam textile sector
20
Jul '15
Jul '15
Vietnam’s textile and garment sector continues to be a magnet for FDI. While FDI in Vietnam has fallen significantly in the first six months of 2015, it rose sharply in the textile and garment sector, according to the country’s newspapers.
Several domestic and foreign-invested cotton projects are rushing to begin operating in anticipation of competing across borders after Free Trade Agreements (FTAs) go into effect.
At least $1.12 billion out of the $5.58 billion worth of capital inflows went into the textile sector. One of the three largest projects was capitalised at $660 million, the highest ever in the field.
The $660 million project, in a yarn factory in Dong Nai province, was registered by an investor from Turkey. Among others is a $300 million project registered by a British investor in Ho Chi Min City and a $160 million project in Tay Ninh province by a Hong Kong investor.
Prior to that, Vietnam licensed three large projects to investors from China, including $400 million textile and garment complex in Nam Dinh province, $300 million in Quang Ninh province and $200 million in Hai Duong.
Smaller projects are capitalised at tens of millions of dollars. Forever Glorious, a subsidiary of Sheico Group from Taiwan, has committed to invest $50 million in a project to make underwater sportswear.
Gain Lucky Limited belonging to Shenzhou International plans to invest $140 million to develop a fashion design and high-end product development centre.
According to the Vietnam Textile and Apparel Association (Vinatas), once Vietnam officially joins TPP, it would enjoy a zero percent tariff when exporting textile and garment to the US instead of 17-30 per cent tariff.
The biggest problem of Vietnam’s textile and garment industry now is the heavy reliance on imported materials. A report showed it needs to import 50 per cent of input materials to make finished products, mostly from China.
According to the TPP framework, only the products using input materials from TPP member countries will be able to enjoy the preferential tariff of zero percent. (SH)
Several domestic and foreign-invested cotton projects are rushing to begin operating in anticipation of competing across borders after Free Trade Agreements (FTAs) go into effect.
At least $1.12 billion out of the $5.58 billion worth of capital inflows went into the textile sector. One of the three largest projects was capitalised at $660 million, the highest ever in the field.
The $660 million project, in a yarn factory in Dong Nai province, was registered by an investor from Turkey. Among others is a $300 million project registered by a British investor in Ho Chi Min City and a $160 million project in Tay Ninh province by a Hong Kong investor.
Prior to that, Vietnam licensed three large projects to investors from China, including $400 million textile and garment complex in Nam Dinh province, $300 million in Quang Ninh province and $200 million in Hai Duong.
Smaller projects are capitalised at tens of millions of dollars. Forever Glorious, a subsidiary of Sheico Group from Taiwan, has committed to invest $50 million in a project to make underwater sportswear.
Gain Lucky Limited belonging to Shenzhou International plans to invest $140 million to develop a fashion design and high-end product development centre.
According to the Vietnam Textile and Apparel Association (Vinatas), once Vietnam officially joins TPP, it would enjoy a zero percent tariff when exporting textile and garment to the US instead of 17-30 per cent tariff.
The biggest problem of Vietnam’s textile and garment industry now is the heavy reliance on imported materials. A report showed it needs to import 50 per cent of input materials to make finished products, mostly from China.
According to the TPP framework, only the products using input materials from TPP member countries will be able to enjoy the preferential tariff of zero percent. (SH)
Fibre2Fashion News Desk – India
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