Skip Ribbon Commands
Skip to main content
Wednesday, October 16 2019
Tiếng Việt
a A
Date 22/07/2019-16:25:00 PM
FDI firms in VN’s textile and garment industry expand operations

FDI firms in VN’s textile and garment industry expand operations
An industry insider forecasts the local textile and garment industry will maintain high growth potential until 2035 with an estimated export turnover of about US$200 billion.

Deputy Minister for Industry and Trade DoThangHaisaid trade and industry achieved remarkable results during the year, making a positive contribution to the national economy.

Viet Nam is the world’s third largest clothing exporter and has benefited as producers and buyers diversify their supply chains, helped by its low labor costs and industry focus on specialization, modernization, and increasing value addition.

The country’s participation in the Comprehensive Partnership and Trans-Pacific Partnership Agreement (CPTPP) and the upcoming EU-Viet Nam Free Trade Agreement (EVFTA)haveprompted foreign producers to expand in the country’s textile and garment industry.

American developer of spider silk-based yarnKraigBiocraftLaboratories Inc has also chosen VietNam to scale up its spider silk commercialization efforts. The group is working with agricultural co-operatives inQuangNam Province to set up a center for research and development of silk as well as grow mulberry to support spider silk.

In addition,Korean giant Hyosung Corporation is in the process of expansion in VietNam. According to managing director of Hyosung Vietnam Company Limited,YooSunHyung, the company has invested some US$1.5 billion in DongNaiprovince, but is still planning to expand its fiber manufacturing projects.

Another Korean textile producer - Hi Knit Company Limited – has been recently licensed a project to produce textiles and nonwoven fabric for export and domestic foreign-invested companies in DongNaiProvince.

German-basedAmannGroup, which is among the world’s top three leading producers of high-quality sewing and embroidery thread, is expanding its network to Viet Nam with a new factory being constructed in the central province ofQuangNam.

At the new production site, the group will produce around 2,300 tons of sewing thread per year, mainly for the manufacture of apparel and shoes. The first phase of the project is scheduled to commence in late July next year.

The domino effect created by foreign expansion in the textile and garment sector has also led to an increase in the number of foreign suppliers of machinery and equipment for the industry. ILLIES VietNam, a member of German C. ILLIES & Co and a leadingdistributor of industrial textiles machinery and equipment, for example, also expanded its portfolio in the spinning sector.

It now provides machines and spare parts for short-staple yarn-spinning systems for theRieterGroup and the local textile market.

In the first quarter of 2019, ILLIES will also open a repair center for mechanical and electrical parts ofRietermachines.

High export growth

The VietNamTextile and Apparel Association saidfree trade agreements, especially the CPTPP and the EVFTA, are a big motivation to lure foreign investment in VietNam’s textile and garment industry.

Thanks to the deal, instead of focusing only on Chinese textile and garment products as previously, importers from Canada, Australia and New Zealand are now interested in Vietnamese products. Many of them have come to the country to seek business opportunities and some orders have been signed so far,theysaid.

In particular, theysaid, the CPTPP, which will beeffectivenext year, will offer VietNam a big opportunity to increase textile and garment exports to the bloc’s markets, which is forecast to have a growth rate of 2-3%next years and have a total import value of up to US$40 billion per year.

With the rising demands, theyforecast the local textile and garment industry will maintain high growth potential until 2035 with an estimated export turnover of about US$200 billion./.

Vien Nhu
VGP

    Viewed: 155

Rating

(Choose stars to rate)
  
Ministry of Planning and Investment Portal
Copyright by Ministry of Planning and Investment
Address: No. 6B, Hoang Dieu, Ba DiAddress: No. 6B, Hoang Dieu, Ba Dinh, Hanoi - Tel: (84-80)43485; (84-24)38455298 (Ministry Office);
Fax: (84-24)38234453 (Ministry Office); Email: banbientap@mpi.gov.vn