FDI flow into garment and textile sector bounces back

Monday, Apr 22, 2024 14:47

Workers of Dony Garment Company in HCM City's Bình Chánh District. — VNA/VNS Photo Hồng Đạt

The flow of foreign direct investment (FDI) into the Vietnamese garment and textile sector has rebounded thanks to the country’s sound investment climate and abundant workforce as well as its open economy, according to insiders.

Chairman of the Việt Nam Textile & Apparel Association (VITAS) Vũ Đức Giang said foreign garment and textile producers are expanding their operations in Việt Nam to take advantages in the Vietnamese market.

He held that various free trade agreements (FTA), particularly new-generation deals such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), EU-Việt Nam FTA (EVFTA) and Regional Comprehensive Economic Partnership (RCEP) to which Việt Nam is a signatory is a locomotive for the sector to lure both domestic and foreign investors.

The management board of industrial parks of the northern province of Nam Định has granted an investment certificate to Hong Kong-based Crystal International Group to carry out its US$60-million- Yi Da Denim Mill project.

The group has run various plants in the northern localities of Hải Dương, Hải Phòng, Bắc Giang and Phú Thọ and the southern province of Bình Dương, with a combined export revenue of some $1 billion and generating jobs for 40,000 local workers.

Meanwhile, the world’s leading zipper producer YKK Corp from Japan invested in its second plant at Đồng Văn Industrial Zone in the northern province of Hà Nam. According to YKK Vietnam General Director Yuji Furukawa, after 25 years of operation in Việt Nam, YKK has increased its zipper productivity by 100 folds, and the number of workers seven folds to 2,800 labourers.

Earlier, YKK had to import several materials to provide its local customers. However, its Vietnamese plant is now able to manufacture all of YKK products and even ship them to foreign countries like Cambodia and Myanmar, he said.

Most recently, SAB Industrial Vietnam Company Limited under China's Weixing group put into operation its $62-million-factory in the north-central province of Thanh Hóa. Covering 66.44 hectares, the factory produces various items, including metal, plastic and nylon zippers, and plastic and metal buttons.

Besides helping the sector reduce its dependence on imported raw materials, FDI capital has played an important role in reducing manufacturing time and transport costs, making products become more competitive.

In the first quarter of 2024, Việt Nam gained nearly $8 billion from garment and textile export revenue, with FDI firms contributing over 60 per cent of the total. — VNS

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