Foreign investment in the textile and garment sector is increasingrapidly as international firms seek to take advantage of the benefitsVietnam will potentially derive when the Trans-Pacific PartnershipAgreement comes into being.
Several companies from mainlandChina, Hong Kong, Taiwan, Japan, the US and the Republic of Korea (RoK)have made large investments in the sector, according to Thoi Bao TaiChinh (Finance Times) newspaper.
The textile and garment industry in the TPP member countries is expected to benefit the most from the trade deal.
Forinstance, products made from domestically sourced materials or importedfrom other TPP member countries will enjoy zero tariff when exported tosignatory countries.
According to Le Tien Truong, Vice Chairmanof the Vietnam Textile and Apparel Association, up to 60 percent of thecountry's textile and garment exports go to member countries.
Analystsestimate that once Vietnam becomes a TPP member the average tax onVietnamese garments will come down from the current 17-18 percent tozero.
In that scenario, exports to the US market could increase three-fold from 8.6 billion USD last year to 20 billion USD in 2020.
Itis with an eye on such opportunities that foreign firms are scramblingto invest in the Vietnamese textile and garment industry.
In June RoK’s Dong-IL Corporation began building a 52 million USD yarn factory in Dong Nai province's Long Thanh district.
The plant will have an annual capacity of 9,000 tonnes of fibre when it opens in mid-2015.
InHo Chi Minh City, Forever Glorious, a subsidiary of Taiwan's SheicoGroup, announced it would set up a 50 million USD weaving-dyeing-garmentproduction chain for premium sports garments.
In March cityauthorities had issued a licence to China's Gain Lucky Limited, asubsidiary of Shenzhou International, for building a 140 million USDcentre for fashion design and garment manufacture. The company producesgarments for brands like Nike, Adidas, and Puma.
Also in March Hong Kong-based Esqual Group opened a 25 million USD garment plant in the northern province of Hoa Binh.
Notlong ago the northern province of Nam Dinh issued an investment licenceto China's Jiangsu Yulun Textile Group for a 68 million USD textile,dyeing, and yarn plant at the Bao Minh Industrial Zone.
Besides the new investments, many existing foreign garment firms have increased their investments to expand their activities.
Speakingabout the strong foreign investment flow into the sector, Dang PhuongDung, Deputy Secretary of the Vietnam Textile and Apparel Association,said the chronic bottlenecks in the weaving and dyeing sectors in termsof intensive investment, experience, technology, and workforce have beenaddressed.
According to analysts, the fact that more and moreforeign firms are investing in the textile and garment industry wouldencourage Vietnam to quickly wrap up final negotiations for theagreement.
Becoming a TPP member would offer not only thetextile and garment industry more opportunities to develop but also itssupport industries and even the economy as a whole, they said, pointingalso to other obvious benefits like employment generation.-VNA
Several companies from mainlandChina, Hong Kong, Taiwan, Japan, the US and the Republic of Korea (RoK)have made large investments in the sector, according to Thoi Bao TaiChinh (Finance Times) newspaper.
The textile and garment industry in the TPP member countries is expected to benefit the most from the trade deal.
Forinstance, products made from domestically sourced materials or importedfrom other TPP member countries will enjoy zero tariff when exported tosignatory countries.
According to Le Tien Truong, Vice Chairmanof the Vietnam Textile and Apparel Association, up to 60 percent of thecountry's textile and garment exports go to member countries.
Analystsestimate that once Vietnam becomes a TPP member the average tax onVietnamese garments will come down from the current 17-18 percent tozero.
In that scenario, exports to the US market could increase three-fold from 8.6 billion USD last year to 20 billion USD in 2020.
Itis with an eye on such opportunities that foreign firms are scramblingto invest in the Vietnamese textile and garment industry.
In June RoK’s Dong-IL Corporation began building a 52 million USD yarn factory in Dong Nai province's Long Thanh district.
The plant will have an annual capacity of 9,000 tonnes of fibre when it opens in mid-2015.
InHo Chi Minh City, Forever Glorious, a subsidiary of Taiwan's SheicoGroup, announced it would set up a 50 million USD weaving-dyeing-garmentproduction chain for premium sports garments.
In March cityauthorities had issued a licence to China's Gain Lucky Limited, asubsidiary of Shenzhou International, for building a 140 million USDcentre for fashion design and garment manufacture. The company producesgarments for brands like Nike, Adidas, and Puma.
Also in March Hong Kong-based Esqual Group opened a 25 million USD garment plant in the northern province of Hoa Binh.
Notlong ago the northern province of Nam Dinh issued an investment licenceto China's Jiangsu Yulun Textile Group for a 68 million USD textile,dyeing, and yarn plant at the Bao Minh Industrial Zone.
Besides the new investments, many existing foreign garment firms have increased their investments to expand their activities.
Speakingabout the strong foreign investment flow into the sector, Dang PhuongDung, Deputy Secretary of the Vietnam Textile and Apparel Association,said the chronic bottlenecks in the weaving and dyeing sectors in termsof intensive investment, experience, technology, and workforce have beenaddressed.
According to analysts, the fact that more and moreforeign firms are investing in the textile and garment industry wouldencourage Vietnam to quickly wrap up final negotiations for theagreement.
Becoming a TPP member would offer not only thetextile and garment industry more opportunities to develop but also itssupport industries and even the economy as a whole, they said, pointingalso to other obvious benefits like employment generation.-VNA
