In the past 10 months, nearly 20 foreign firms invested hundreds ofmillions of US dollars in Vietnam's garment industry, the Englishlanguage news portal VietNamNet Bridge reported.
In earlyOctober, Hong Kong’s TAL Group was licensed to invest 600 million USD tobuild a fibre production, knitting and fabric dyeing factory at the DaiAn Industrial Zone in Hai Duong province.
TAL has invested inthe garment industry in Vietnam since 2004 with a plant in Thai Binhprovince. Its products have been exported to the US.
TAL ApparelLimited of Singapore on November 4 received an investment certificatefrom local authorities of the northern province of Vinh Phuc, paving theway for the Singaporean giant to construct a 50 million USD textileplant.
Local officials approved for the plant to be constructed at Ba Thien 2 Industrial Park in Binh Xuyen commune.
Itis the largest foreign invested project that has received approval todate in the province and, once completed, it is expected to generate3,500 new jobs and contribute 40 billion VND to the national budgetannually.
Construction is expected to be completed by next September.
Previously,Nam Dinh licensed a 68 million USD fibre-weaving-dyeing project in theBao Minh Industrial Zone. The project, invested by Chinese Yulun JiangsuTextile Group, is expected to go into operation in mid-2016.
Inthe south, many corporations of Taiwan and Hong Kong have alsostrengthened their investments in the textile-garment industry.
Inearly October, Haputex Development Limited (Hong Kong) and Viet HuongInvestment and Development JSC of Vietnam formed a 120 million USD jointventure named Nam Phuong Textile Limited in Binh Duong province,specialised in weaving.
This project will be put into operationin early 2016, employing about 3,000 workers. Each year, this factoryaims to supply 96 million metres of fabric, 15,000 tonnes of fibres and10 million of garment products to the US and European markets.
Inthe Southeast Cu Chi District Industrial Zone, Ho Chi Minh City, twoprojects with a total investment of nearly 200 million USD of twoforeign companies are being implemented.
Worldon Vietnam Co. hasinvested in a luxury garment factory, which can produce 80 million ofproducts per year, with 140 million USD of investment capital. Thefactory is expected to put into operation next June .
SheicoVietnam Co., Ltd. is building a fabric weaving and garment project with atotal investment of 50 million USD. The project is expected to becompleted this month.
Apart from building factories, many foreign corporations have bought shares or cooperated with Vietnamese partners.
According to Nikkei Asian Review, trading firm Itochu will invest in the Vietnam National Textile and Garment Group (Vinatex).
Itochuwill soon acquire about five percent of Vinatex's stock for more than 1billion yen (9.25 million USD), making it Japan's first leadingnon-financial company to buy into a Vietnamese State-owned firm.
Thisinformation was confirmed by Chairman of Vinatex's Executive Board TranQuang Nghi in an interaction with Tuoi Tre (Youth) Newspaper.
He added that Itochu had purchased some Vinatex shares through a normal transaction, not as a strategic shareholder of Vinatex.
AsVietnam's largest state-owned textile company, Vinatex operates about200 factories around the country, of which about 30 are involved insewing garments for Itochu under a contract.
Itochu currentlydoes business with about 100 Vietnamese textile companies, ranging fromthe procurement of raw materials, sewing, to supplies suits, shirts andother products to Japan, the United States and Europe. It is the largestJapanese firm in the country's textile industry.
Phong PhuCorporation - one of the biggest enterprises in the Vietnamese industry -has been also eyed by many foreign investors. In late April, Phong PhuCorporation and Japan’s Hirose Shokai Company Ltd signed an agreement toestablish a joint venture firm called Linen Supply Services Company Ltd(LSS).
The new company will produce textile products such ascotton towels, pillows, blankets and curtains, and offer high-qualitylaundry services for five-star hotels and high-class apartments in HoChi Minh City and its surrounding areas.
It will be located inthe Giang Dien Industrial Zone in the southern province of Dong Nai andwill have a total investment of over 3 million USD in the first phase.Its factory covers an area of 3,168 square metres and is equipped withmodern equipment from Japan.
It has a laundry capacity ofhandling 18 tonnes of material every day. In the second phase, theproject will increase its capacity to 50 tonnes of material per day,mainly serving Ho Chi Minh City and its nearby provinces. It will focuson producing table cloth, uniforms and items for hospitals.
KeitaroHirose, Chairman of the Management Board of Hirose Shokai Company Ltd,said that cooperation with Phong Phu in its investment project inVietnam meant that they would work with the Vietnamese company and thetextile industry in Vietnam for a long-term period.
Hirose alsohoped to spread LSS’s presence in many cities in Vietnam in the futureby implementing investment studies in Hanoi, Da Nang and Nha Trang.
Accordingto the Ministry of Planning and Investment, the number offoreign-invested enterprises (FDI) pouring capital into the textileindustry is growing quickly.
So far this year, nearly 20 new projects of FDI firms have been approved by local governments.
However,the Vietnam Textile and Apparel Association (Vitas) has warned of theexpanding gap between FDI and domestic firms in the textile-garmentsector.
A Vitas representative said the number of FDItextile-garment firms is small, but their scale is very large. Vietnam’sannual textile-garment export revenue was more than 20 billion USD andFDI enterprises contributed to 12 billion USD.
Currently,investment in China is facing difficulty and Vietnam has become a goodplace for investment. But this also can create major concern forVietnamese enterprises.
Pham Xuan Hong, Vitas Vice President,sees it as a chance for Vietnamese enterprises to develop theirtechnology and buy materials at low prices.-VNA
In earlyOctober, Hong Kong’s TAL Group was licensed to invest 600 million USD tobuild a fibre production, knitting and fabric dyeing factory at the DaiAn Industrial Zone in Hai Duong province.
TAL has invested inthe garment industry in Vietnam since 2004 with a plant in Thai Binhprovince. Its products have been exported to the US.
TAL ApparelLimited of Singapore on November 4 received an investment certificatefrom local authorities of the northern province of Vinh Phuc, paving theway for the Singaporean giant to construct a 50 million USD textileplant.
Local officials approved for the plant to be constructed at Ba Thien 2 Industrial Park in Binh Xuyen commune.
Itis the largest foreign invested project that has received approval todate in the province and, once completed, it is expected to generate3,500 new jobs and contribute 40 billion VND to the national budgetannually.
Construction is expected to be completed by next September.
Previously,Nam Dinh licensed a 68 million USD fibre-weaving-dyeing project in theBao Minh Industrial Zone. The project, invested by Chinese Yulun JiangsuTextile Group, is expected to go into operation in mid-2016.
Inthe south, many corporations of Taiwan and Hong Kong have alsostrengthened their investments in the textile-garment industry.
Inearly October, Haputex Development Limited (Hong Kong) and Viet HuongInvestment and Development JSC of Vietnam formed a 120 million USD jointventure named Nam Phuong Textile Limited in Binh Duong province,specialised in weaving.
This project will be put into operationin early 2016, employing about 3,000 workers. Each year, this factoryaims to supply 96 million metres of fabric, 15,000 tonnes of fibres and10 million of garment products to the US and European markets.
Inthe Southeast Cu Chi District Industrial Zone, Ho Chi Minh City, twoprojects with a total investment of nearly 200 million USD of twoforeign companies are being implemented.
Worldon Vietnam Co. hasinvested in a luxury garment factory, which can produce 80 million ofproducts per year, with 140 million USD of investment capital. Thefactory is expected to put into operation next June .
SheicoVietnam Co., Ltd. is building a fabric weaving and garment project with atotal investment of 50 million USD. The project is expected to becompleted this month.
Apart from building factories, many foreign corporations have bought shares or cooperated with Vietnamese partners.
According to Nikkei Asian Review, trading firm Itochu will invest in the Vietnam National Textile and Garment Group (Vinatex).
Itochuwill soon acquire about five percent of Vinatex's stock for more than 1billion yen (9.25 million USD), making it Japan's first leadingnon-financial company to buy into a Vietnamese State-owned firm.
Thisinformation was confirmed by Chairman of Vinatex's Executive Board TranQuang Nghi in an interaction with Tuoi Tre (Youth) Newspaper.
He added that Itochu had purchased some Vinatex shares through a normal transaction, not as a strategic shareholder of Vinatex.
AsVietnam's largest state-owned textile company, Vinatex operates about200 factories around the country, of which about 30 are involved insewing garments for Itochu under a contract.
Itochu currentlydoes business with about 100 Vietnamese textile companies, ranging fromthe procurement of raw materials, sewing, to supplies suits, shirts andother products to Japan, the United States and Europe. It is the largestJapanese firm in the country's textile industry.
Phong PhuCorporation - one of the biggest enterprises in the Vietnamese industry -has been also eyed by many foreign investors. In late April, Phong PhuCorporation and Japan’s Hirose Shokai Company Ltd signed an agreement toestablish a joint venture firm called Linen Supply Services Company Ltd(LSS).
The new company will produce textile products such ascotton towels, pillows, blankets and curtains, and offer high-qualitylaundry services for five-star hotels and high-class apartments in HoChi Minh City and its surrounding areas.
It will be located inthe Giang Dien Industrial Zone in the southern province of Dong Nai andwill have a total investment of over 3 million USD in the first phase.Its factory covers an area of 3,168 square metres and is equipped withmodern equipment from Japan.
It has a laundry capacity ofhandling 18 tonnes of material every day. In the second phase, theproject will increase its capacity to 50 tonnes of material per day,mainly serving Ho Chi Minh City and its nearby provinces. It will focuson producing table cloth, uniforms and items for hospitals.
KeitaroHirose, Chairman of the Management Board of Hirose Shokai Company Ltd,said that cooperation with Phong Phu in its investment project inVietnam meant that they would work with the Vietnamese company and thetextile industry in Vietnam for a long-term period.
Hirose alsohoped to spread LSS’s presence in many cities in Vietnam in the futureby implementing investment studies in Hanoi, Da Nang and Nha Trang.
Accordingto the Ministry of Planning and Investment, the number offoreign-invested enterprises (FDI) pouring capital into the textileindustry is growing quickly.
So far this year, nearly 20 new projects of FDI firms have been approved by local governments.
However,the Vietnam Textile and Apparel Association (Vitas) has warned of theexpanding gap between FDI and domestic firms in the textile-garmentsector.
A Vitas representative said the number of FDItextile-garment firms is small, but their scale is very large. Vietnam’sannual textile-garment export revenue was more than 20 billion USD andFDI enterprises contributed to 12 billion USD.
Currently,investment in China is facing difficulty and Vietnam has become a goodplace for investment. But this also can create major concern forVietnamese enterprises.
Pham Xuan Hong, Vitas Vice President,sees it as a chance for Vietnamese enterprises to develop theirtechnology and buy materials at low prices.-VNA
