FDI Focuses on Textiles to Create a Closed Chain

FDI Focuses on Textiles to Create a Closed Chain

Foreign investors continue to accrue capital to the textile and garment industry in Vietnam to take advantage of the production cost.

Raising investment capital, putting the project into production

Polytex Far Eastern Vietnam Company (Taiwan) has just inaugurated a polyester fiber factory in Bau Bang industrial zone (Binh Duong province) with a total investment capital of over US $ 400 million.

Far Eastern is also an enterprise has a largest increased investment capital in Binh Duong in the last 7 months. Specifically, this company increased capital by $ 485.8 million, bringing the total registered capital up to $ 760 million.

Regarding synthetic fiber production, recently Binh Duong licensed a quite large investment project in Bau Bang Industrial Park. It is the project of Polyester Tire production Factory of Kolon Group (Korea). The project has an investment capital of US $ 220 million, with a production capacity of 36,000 tons per year.

While Mr. Mai Van Nhon, Deputy Head of Dong Nai Industrial Zones Authority said that the biggest investment project in the locality was also related to the textile and garment sector. Specifically, Long Thai Tu fibe Co., Ltd. (Korea) has increased investment capital up to $ 50 million for the project in Long Khanh Industrial Zone.

Previous, at the end of 2016, this enterprise completed the investment of construction of a 37,000 square meter workshop on an 18 hectare site in Nhon Trach 2 Industrial Park.

Continue to invest in depth

According to experts, FDI enterprises operating in the field of textile and garment are invested by Vietnam still is determined that have an attractive investment environment.

"FDI capital flows will continue to flow into Vietnam despite the adoption of the Transpacific Partnership Agreement (TPP), to take advantage of the cost of production," Ph.D Huynh Thanh Dien, specialist of the Ho Chi Minh City Sewing Apparel Association.

According to Mr.Dien, FDI enterprises still have more advantages than domestic enterprises. However, as the competition will be more drastic, FDI enterprises will also be more flexible, with a tendency for intensive investment in OBM production method (self-design, production, distribution). Full participation in the global production chain.

For example, the project of Worldon Vietnam (Hong Kong) Ltd in Dong Nam Industrial Zone (HCMC), after being licensed to increase capital by $ 140 million in March 2015, has invested in building a fashion design center and producing high quality knitwear.

Mr.Tran Viet Ha, Head of Investment (HCM City Export Processing and Industrial Zones Authority), said that with the investment in design activities, the products made by Worldon Vietnam will form the closed chain, standard to supply for famous brands like Uniqlo, Nike, Adidas, Puma…

The information source of the reporter of Investment Newspaper said that Trillions corporation (USA), a major partner of Adidas and Nike, recently has announced the expansion of an additional 5 hectares of investment area in next year.

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