Inside a garment and textile company in Phu Binh district, Thai Nguyen province. (Photo: VNA) Chairman of the Vietnam Textile & Apparel Association (VITAS) Vu Duc Giang saidforeign garment and textile producers are expanding their operations in Vietnamto take advantages in the Vietnamese market.
He held that various free trade agreements (FTA), particularly new-generationdeals such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP), EU-Vietnam FTA (EVFTA) and Regional Comprehensive Economic Partnership(RCEP) to which Vietnam is a signatory is a locomotive for the sector to lureboth domestic and foreign investors.
The management board of industrial parks of the northern province of Nam Dinh has grantedan investment certificate to Hong Kong-based Crystal International Group tocarry out its 60-million-USD Yi Da Denim Mill project.
The group has run various plants in the northern localities of Hai Duong,Hai Phong, Bac Giang and Phu Tho and the southern province of Binh Duong, witha combined export revenue of some 1 billion USD and generating jobs for 40,000local workers.
Meanwhile, the world’s leading zipper producer YKK Corp. from Japan invested in its second plant at Dong Van industrial zone in the northern province of HaNam. According to YKK Vietnam General Director Yuji Furukawa, after 25 years ofoperation in Vietnam, YKK has increased its zipper productivity by 100 folds,and the number of workers seven folds to 2,800 labourers.
Earlier, YKK had to import several materials to provide its local customers. However, its Vietnamese plant is now able to manufacture all of YKK productsand even ship them to foreign countries like Cambodia and Myanmar, he said.
Most recently, SAB Industrial Vietnam Company Limited under China's Weixing group put into operation its 62-million-USD factory in the north-centralprovince of Thanh Hoa. Covering 66.44 hectares, the factory produces variousitems, including metal, plastic and nylon zippers, and plastic and metalbuttons.
Besides helping the sector reduce its dependence on imported raw materials, FDIcapital has played an important role in reducing manufacturing time andtransport costs, making products become more competitive.
In Quarter 1 of 2024, Vietnam gained nearly 8 billion USD from garment and textile export revenue, withFDI firms contributing over 60% of the total./.
VNA
