Garment & textile sector, magnet for foreign investors
Updated : Thursday, June 14, 2018 3:31 PM (GMT+0700)

Morethan 2,000 foreign businesses from 16 countries and territories worldwide haveinvested some 15.75 trillion USD in Vietnam’s garment and textile sector sofar, according to Chairman of the Vietnam Textile and Apparel Association(VITAS) Vu Duc Giang.

 
Vietnamese garment and textile sector has been attractive to foreign investors - Photo: VNA

The Republic of Korea is thelargest investor with total investment exceeding 4.4 billion USD, followed byTaiwan (China) with 2.5 billion USD, Hong Kong (China) with 2.1 billion USD,and Japan with 789 million USD.

Earlier this year, Japan’sITOCHU Corporation splashed out 47 million USD on purchasing an additional 10percent of the Vietnam National Textile and Garment Group (Vinatex). Thepurchase raised ITOCHU’s stake in Vinatex to 15 percent, making it thesecond-largest stakeholder after the Ministry of Industry and Trade.

Vinatex operates 200 memberenterprises nationwide and is exporting various kinds of products with highadded value. ITOCHU’s deeper engagement in the Vietnamese group will bolsterVinatex’s export revenue, including revenue gained in Japan.

Notably, the garment andtextile sector has lured many large scale foreign direct investment projects,including the 80-million USD Nam Dinh Ramatex Textile and Garment Factory bySingapore, and 80-million USD Ha Nam YKK Factory specialised in producingzippers and other materials for the garment industry.

Giang said that low labourcosts coupled with free trade agreements, including the Comprehensive andProgressive Agreement for Trans-Pacific Partnership (CPTPP), have made theVietnamese garment and textile sector alluring to foreign investors.

Once the CPTPP takes effect,Vietnam can increase shipments to CPTPP member countries, which spend up to 40billion USD on garment and textile products every year.

However, to attract moreforeign investment, the Government and the Ministry of Industry and Tradeshould devise stable policies, and pen a strategy for the garment and textile,with the construction of industrial parks meeting international standards onwastewater treatment key, he underlined.

Source:VNA

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