Workers are on duty in a fibre factory in Phu Bai IZ.— Photo thuathienhue.vietccr.vn

HA NOI (Biz Hub) — The Vietnam Joint Stock Commercial Bank for Industrial and Trade (VietinBank) will lend Thien An Thinh Textile and Garment Joint Stock Company VND161 billion, or US$7.8 million.

An agreement to this effect was signed in the central province of Thua Thien Hue on March 5.

The loan is to build a fibre plant to meet the export demand and production of garments and textiles under the Vietnam National Textile and Garment Group (Vinatex)'s target.

Vinatex aims to build a closed production chain -- from the yarn to the finished product -- in order to benefit from the future Trans-Pacific Partnership agreement.

The construction of plant was kicked off in the Phu Bai Industrial Zone on the same day. It expected to become operational in Q1 2015. Once completed, the plant plans to recruit 150 workers and will provide fibre materials for the local garment and textile industry.

Last year, Viet Nam recorded a new milestone with a textile export turnover of $20.4 billion. Vinatex forecasts that this figure will reach $23.5 to 24.5 billion this year.—VNS