Vinatex to mop up $4bn worth funds to boost fabric exports
14 Nov '06
2 min read
Textile and apparel maker Vinatex requires funds worth US $4 billion to fuel a strategy to manufacture woven fabric for clothing companies, which will be exported.
Corporation, run by the state, informed that funds will be accrued from various sources with special focus on global investors.
Vinatex aims to manufacture 500 million square meters of handmade fabrics by 2010 for export and will raise this amount to 1 billion by 2015, as per the master plan presented to the Industry Ministry.
Company informed that textile industry's production capacity of woven fabrics was 600 square meters this year, which fulfilled only 20 percent of export demands. This led to the industry importing woven fabrics worth over $2 billion.
Local textile and apparel industry is concentrating on setting up large scale weaving and dyeing units and motivating the latter to function as joint stock companies or offer business partnerships in lieu of current small scale units, to achieve Vinatex's corporate ambitions.
To raise funds for such an expansion, Vietnam Government wants company to tie up with global firms.
Exports of the sector for first 10 months 2006 were $5 billion, which is 27.2 percent higher as against last year. With a figure of $1.8 billion, US was the largest importer of local goods.
This year, industry seeks returns worth $5.8 billion through export of textiles and apparel to US, EU and Japan, which would cross $4.8 billion mark in 2005.
-Ltd..jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Thermore (Far East) Ltd.")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Telangana State Industrial Infrastructure Corporation Limited (TSllC Ltd)")
.jpg?tr=w-120,h-60,c-at_max,cm-pad_resize,bg-ffffff "Taiwan Textile Federation (TTF)")
