Workers at the Garment 10 Company under Vinatex pack shirts for export. Vinatex is seeking investment for 57 projects this year. — VNA/VNS Photo Tran Viet

HA NOI (Biz Hub) — Viet Nam Textile and Garment Group (Vinatex) is seeking VND9.72 trillion (US$458 million) to invest in 57 projects, including fibre production, knitting, dyeing and garment production.

Vinatex's General Director Tran Quang Nghi acknowledged that the $458 million investment capital was a very large amount and difficult to raise, especially when the group has only VND4 trillion ($189 million) in charter capital.

In order to unlock the capital ties for investment, Vinatex proposed that the Government allow the group to hold incomes derived from State-capital sales in the equitisation process in five years. Vinatex eyes going public by the end of this June, which would increase the group's capital to VND5 trillion ($237 million).

Also, the group asked the Government for more privileges, including lower land rent and looser environmental standards, to attract more investments into knitting and dying-finished processes.

Among the 57 projects include 15 in yarn, 8 in weaving and 24 garment projects. Of these, weaving and dyeing projects would require a large amount of capital. When completed, 57 projects are expected to provide 7,000 tonnes of fibre, 1.1 million jackets, and 4,000 tonnes of knitted fabric.

Le Tien Luong, Vinatex's deputy general director, said that investment in material production was pivotal for raising localisation ratios and added values of apparel products, as well as to increase the benefits in the textile, garment, leather and footwear sectors offered by the Trans-Pacific Partnership (TPP).

TPP members account for 60 per cent of Viet Nam's textile and garment revenues, of which 43 per cent come from sales to the US, 12 per cent from Japan, and 4 per cent from other countries. — VNS