Friday, August 18, 2017 - 6:34:53

Quang Nam woos textile investment

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The central province of Quang Nam is welcoming an investment capital inflow into garment and textile sector.

Seven out of 12 newly licensed projects are from the sector, the Cong Thuong (Industry and Trade) newspaper reported.

The most prominent project was a fiber-weaving-dying and garment complex worth 1.2 trillion VND (55.5 million USD). Developed by the Vietnam National Textile and Garment Group in Que Son district, the complex is slated for completion within two years and expected to earn 2 trillion VND (92.59 million USD) annually.

Other projects include a 30 million USD textile-garment-dyeing factory financed by the Republic of Korea (RoK)-invested Panko Tam Thang company; a Onewoo garment manufacturing plant capitalised at 6 million USD; and a Taiwanese apparel factory valued at 4 million USD in Thuan Yen industrial zone.

Vo Van Hung, head of the provincial Investment Promotion and Enterprises Support Agency, said domestic enterprises and their foreign peers coming from the RoK, China and Taiwan have visited the province to seek relevant investment opportunities.

A dozen investment agreements to develop textile and garment projects were inked between the agency and these foreign investors, Hung said.

According to analysts, the new investment inflow into garment and textile industry is predictable, as Vietnam will potentially reap benefits Vietnam once the Trans-Pacific Partnership Agreement is signed.

Several companies from China, Hong Kong, Taiwan, Japan, the US and the Republic of Korea have poured money in the sector, according to Thoi Bao Tai Chinh (Finance Times) newspaper.

The textile and garment industry in TPP member countries is expected to benefit the most from the trade deal, with products made from domestically sourced materials or imported from TPP member states being exempt from tariff when exported to signatory countries.

Le Tien Truong, Vice Chairman of the Vietnam Textile and Apparel Association, said up to 60 percent of the country's textile and garment exports go to member countries.

Analysts estimate that once Vietnam joins the TPP, the average tax on Vietnamese garments will fall from the current 17 or 18 percent to zero.-VNA
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