The Bank for Investment and Development of Vietnam (BIDV) signed an agreement to lend the Vientam National Textile and Garment Group (Vinatex) US$600 million in the period of 2014-2016. Photo courtesy of BIDV

BINH DINH (Biz Hub) — The Bank for Investment and Development of Vietnam (BIDV) has signed an agreement to lend the Vietnam National Textile and Garment Group (Vinatex) US$600 million in the period 2014-16.

The agreement was signed on January 15 in the central coastal province of Binh Dinh.

Vinatex's borrowing resources include a short-term loan of $250 million and a medium and long term loan of $350 million. The loans will be used for improving the efficiency of its production and business operations in order to prepare for Viet Nam's participation in Trans-Pacific Partnership (TPP), as well as for investing in projects of the corporation and its member companies.

Tran Bac Ha, chairman of BIDV's management board, said that with BIDV's support, Vinatex in particular and the Vietnamese textile industry in general will prepare carefully for the participation in TPP.

At the signing ceremony, Vinatex expressed its intention to build a weaving and dyeing factory, manufacture 60 million products a year and invest $30 million to construct eight to10 factories for manufacturing and export. It also plans to build a chain of supermarkets and direct selling in the province's Quy Nhon city and in its towns and districts.

Tran Quang Nghi, general director of Vinatex, said that the corporation requires $600 million to add to the working capital of its member companies and to construct a textile complex in the province. He said that he expects the localisation rate of the textile industry to reach 60 per cent in 2015 and 70 per cent by 2020. — VNS