The TPP has encouraged many foreign textile and garment firms to boost investments in Vietnam. The yarn-forward rule under the TPP requires that the yarns, fabrics and final garments to be exported within the TPP should be produced in the TPP member countries. So, apparel producers in Vietnam will have to use domestic material or import it from the TPP members instead of China if they want to benefit from the multilateral trade pact.
$274 million project by Taiwan’s Far Eastern Group in Binh Duong
Early this week, the government of Binh Duong Province awarded an investment certificate to Polytex Far Eastern Co. Ltd. under Taiwan’s Far Eastern Group to develop a US$274-million clothing project.
The biggest FDI project in the southern province in the year to date will go up on 99 hectares at Bau Bang Industrial Zone and produce supporting items for the apparel sector. It is designed to have an annual capacity of 43,200 tons of polyester, 127 million square meters of knitted fabric and 96 million square meters of cotton fabric.
The investor wanted to build the factory in Vietnam to capitalize on the opportunities from the Trans-Pacific Partnership (TPP). The group plans to invest an additional US$700 million to US$1 billion in the second phase of the project.
$660 million project by South Korea’s Hyosung in Dong Nai
Dong Nai Province approved a US$660-million project of Hyosung Istanbul Tekstil Ltd. The largest project in January-June will make industrial fiber at Nhon Trach 5 Industrial Zone.
This is a Turkish-registered project but the actual investor is South Korea’s Hyosung Group. Hyosung Vietnam Co. Ltd. has been a familiar face in the textile and garment sector in the province with total registered capital of over US$995 million.
$300 million project by Hong Kong’s Worldon Vietnam Co. in Cu Chi District, Ho Chi Minh City
Hong Kong’s Worldon Vietnam Co. Ltd. also got approval to carry out a US$300-million project in the apparel sector in HCMC. The project covers over 50 hectares at Dong Nam Industrial Zone in Cu Chi District.
Read more …
FDI pours into textile and apparel projects, Saigon Times, Jul 2, 2015
Posted: Jul 6, 2015; Updated: Aug 22, 2015