Several domestic and foreign-invested cotton projects are rushing tobegin operating in anticipation of competing across borders after FreeTrade Agreements (FTAs) go into affect.
Statistics from theMinistry of Industry and Trade showed that total investment of FDI inthe country was 5.49 billion USD for the first half of the year. Ofthis, the investment in the garment and textile sector was 1.12 billionUSD.
Notably, two of the largest FDI projects in the periodsought to build cotton and fibre factories, including Hyosung Dong Naifibre production plant financed by Turkey with an investment of 600million USD, along with the 160.8-million-USD Lu Thai cotton factory.
Further,several large local businesses have sought to invest in cottonproduction plants in a bid to participate in the industry and increasetheir competitiveness.
The Ky Cotton Company, a joint venturewith Uni Industrial&Investment Corporation, invested 90 million USDto build a cotton, fibre and dyeing factory in the southern Tay Ninhprovince's Thanh Thanh Cong Industrial Park. It is expected that thefactory will produce 15 million kilos of cotton and fibre, along with 12million kilos of cloth yearly, as it comes into operation.
Inaddition, Duc Quan Investment and Development Company also invested 40million USD into the Fortex 6 plant. The factory is scheduled to helpthe company increase turnover of 30-40 percent as it becomes operationalin the first quarter of 2016.
Meanwhile, General Secretary ofthe Vietnam Textile and Apparel Association (VITAS) Dang Phuong Dungtold Hai Quan (Customs) Newspaper that Vietnam has called for investmentinto producing materials for the garment and textile sectors, and toembrace both opportunities and challenges from FTAs.
Figuresreleased by VITAS showed that in the first five months of the year, thecountry's imports of cotton and fibre were higher against the sameperiod last year, both in terms of quantity and value.
However,the country's exports of these items were also on the rise, with 381,000tonnes worth 1.01 million USD, posting 20 percent and 5.4 percentyear-on-year in quantity and value, respectively.
China was the largest importer in the five-month period, following by the Republic of Korea, Thailand and India.
NguyenNgoc Bach, Head of the Viet Thai Export Garment Company's marketingdepartment, said 60 to 70 percent of garment material supplied to thecountry's textile sector came from China, which has not been part of theTPP block. Using Chinese textile materials could result in Vietnamesegarment and textile products being in violation of the requirement forwhere cotton originates under the TPP. It was for this reason thatVietnamese garment and textile firms have hurried to invest in cottonfactories.
He said several garment and textile firms have notpaid much attention to cotton projects and mostly outsourced workthrough foreign contracts.
Garment companies should change their direction and gradually reduce outsourcing to increase the value of their products.-VNA
Statistics from theMinistry of Industry and Trade showed that total investment of FDI inthe country was 5.49 billion USD for the first half of the year. Ofthis, the investment in the garment and textile sector was 1.12 billionUSD.
Notably, two of the largest FDI projects in the periodsought to build cotton and fibre factories, including Hyosung Dong Naifibre production plant financed by Turkey with an investment of 600million USD, along with the 160.8-million-USD Lu Thai cotton factory.
Further,several large local businesses have sought to invest in cottonproduction plants in a bid to participate in the industry and increasetheir competitiveness.
The Ky Cotton Company, a joint venturewith Uni Industrial&Investment Corporation, invested 90 million USDto build a cotton, fibre and dyeing factory in the southern Tay Ninhprovince's Thanh Thanh Cong Industrial Park. It is expected that thefactory will produce 15 million kilos of cotton and fibre, along with 12million kilos of cloth yearly, as it comes into operation.
Inaddition, Duc Quan Investment and Development Company also invested 40million USD into the Fortex 6 plant. The factory is scheduled to helpthe company increase turnover of 30-40 percent as it becomes operationalin the first quarter of 2016.
Meanwhile, General Secretary ofthe Vietnam Textile and Apparel Association (VITAS) Dang Phuong Dungtold Hai Quan (Customs) Newspaper that Vietnam has called for investmentinto producing materials for the garment and textile sectors, and toembrace both opportunities and challenges from FTAs.
Figuresreleased by VITAS showed that in the first five months of the year, thecountry's imports of cotton and fibre were higher against the sameperiod last year, both in terms of quantity and value.
However,the country's exports of these items were also on the rise, with 381,000tonnes worth 1.01 million USD, posting 20 percent and 5.4 percentyear-on-year in quantity and value, respectively.
China was the largest importer in the five-month period, following by the Republic of Korea, Thailand and India.
NguyenNgoc Bach, Head of the Viet Thai Export Garment Company's marketingdepartment, said 60 to 70 percent of garment material supplied to thecountry's textile sector came from China, which has not been part of theTPP block. Using Chinese textile materials could result in Vietnamesegarment and textile products being in violation of the requirement forwhere cotton originates under the TPP. It was for this reason thatVietnamese garment and textile firms have hurried to invest in cottonfactories.
He said several garment and textile firms have notpaid much attention to cotton projects and mostly outsourced workthrough foreign contracts.
Garment companies should change their direction and gradually reduce outsourcing to increase the value of their products.-VNA
