Business

Garment & textile sector, magnet for foreign investors

More than 2,000 foreign businesses from 16 countries and territories worldwide have invested some 15.75 trillion USD in Vietnam’s garment and textile sector so far, according to Chairman of the Vietnam Textile and Apparel Association (VITAS) Vu Duc Giang.
Garment & textile sector, magnet for foreign investors ảnh 1Vietnamese garment and textile sector has been attractive to foreign investors. (Photo: VNA)

Hanoi (VNA) – More than 2,000 foreign businesses from 16 countries andterritories worldwide have invested some 15.75 trillion USD in Vietnam’sgarment and textile sector so far, according to Chairman of the Vietnam Textileand Apparel Association (VITAS) Vu Duc Giang.

The Republic of Korea is the largest investor with total investment exceeding4.4 billion USD, followed by Taiwan (China) with 2.5 billion USD, Hong Kong(China) with 2.1 billion USD, and Japan with 789 million USD.

Earlier this year, Japan’s ITOCHU Corporation splashed out 47 million USD onpurchasing an additional 10 percent of the Vietnam National Textile and GarmentGroup (Vinatex). The purchase raised ITOCHU’s stake in Vinatex to 15 percent,making it the second-largest stakeholder after the Ministry of Industry andTrade.

Vinatex operates 200 member enterprises nationwide and is exporting variouskinds of products with high added value. ITOCHU’s deeper engagement in theVietnamese group will bolster Vinatex’s export revenue, including revenuegained in Japan.

Notably, the garment and textile sector has lured many large scale foreigndirect investment projects, including the 80-million USD Nam Dinh RamatexTextile and Garment Factory by Singapore, and 80-million USD Ha Nam YKK Factoryspecialised in producing zippers and other materials for the garment industry.

Giang said that low labour costs coupled with free trade agreements, includingthe Comprehensive and Progressive Agreement for Trans-Pacific Partnership(CPTPP), have made the Vietnamese garment and textile sector alluring toforeign investors.

Once the CPTPP takes effect, Vietnam can increase shipments to CPTPP membercountries, which spend up to 40 billion USD on garment and textile productsevery year.

However, to attract more foreign investment, the Government and the Ministry ofIndustry and Trade should devise stable policies, and pen a strategy for thegarment and textile, with the construction of industrial parks meetinginternational standards on wastewater treatment key, he underlined.-VNA 
VNA
#2 #000 foreign businesses #15.75 trillion USD #Vietnam’s garment and textile sector #Republic of Korea #ITOCHU Corporation #low labour costs #free trade agreements #CPTPP #stable policies #Vietnam News Agency #Vietnamplus
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