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Global investors give a miss to Vietnamese textiles

03
Jul '10
As per the Viet Nam Textile and Apparel Association (Vitas), this year, the country has not yet received any interested foreign investor in the country's textile materials so far.

But over 20 foreign firms have already invested in apparels. Most of the funds have come in from South Korea, Hong Kong, Taiwan and mainland China.

The aforesaid statistics was a proof of the fact that, Vietnam was still not, behind the production of textiles and dye firms.

On a yearly basis, Vietnam imports around 80 percent of the materials, this is utilised by the apparel segment. The local industries on the other hand can only provide 30 – 50 percent of the nation's demand for fibre, cotton and other inputs for manufacturing jeans, shirts and other basic apparels.

As the rates of imported inputs increases by 30 – 40 percent this year, manufacturer's difficulties are also leaping high. According to Vitas Vice Chairman, Pham Xuan Hong, foreign direct investment (FDI) is the need of the hour for weaving and dyeing enterprises.

Industry experts believe that, with an investment of US $300,000 – 500,000 could help set up a firm, which can outsource textile goods for international partners. To establish a fibre-manufacturing factory, minimum $15-20 million is required for infrastructure. This does not include the cost of training workers and buying equipment.

Already, during the first half of this year, Vietnam has spent $4.6 billion on imported materials for apparel and footwear sectors, but yet exports of clothing touched only $4.8 billion.

Viet Nam Garment and Textile Corporation (Vinatex) and Viet Nam Oil and Gas Group (PetroVietnam), in order to meet certain textile demands, have developed the Dinh Vu fibre manufacturing factory in Northern Hai Phong City. Vinatex has also constructed four weaving and dyeing industrial zones, in an attempt to lure local and global investors.

By 2015, the Ministry of Industry and Trade also intends to set up a material and dyeing zone in Southern Dong Nai Province.

Fibre2Fashion News Desk - India


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