JavaScript is off. Please enable to view full site.

Vietnam textile firm earmarks $190 mln for projects this year

Friday, March 28, 2014, 09:04 GMT+7
Vietnam textile firm earmarks $190 mln for projects this year
An employee works at the manufacturing plant of a Vinatex subsidiary in Ho Chi Minh City.

The Vietnam National Textile and Garment Group (Vinatex) will pour over VND4 trillion ($190 million) into numerous projects including fiber, textile, garment, and cotton farms this year, CEO Tran Quang Nghi told Tuoi Tre in a recent interview.

Some of the prioritized projects will include two plants that can dye 12-40 million meters of cloth per year, Nghi said.

Vinatexwill also invest VND2.2 trillion ($105 million) in a complex which comprises a fiber – textile – garment manufacturing mill, a water supply facility, a wastewater treatment plant, and accommodations for workers, he elaborated.

The textile firm, Vietnam’s largest of its kind, has planned to set up an investment fund, called "TexFunds," with an initial capital of around VND300-500 billion ($14-24 million) in order to attract investments in infrastructure for the textile industry, which is quite costly at the beginning, Nghi added.

Early this year, the Bank for Investment and Development of Vietnam, better known as BIDV, signed an agreement to lend Vinatex US$600 million in the period from 2014 to 2016.

The loan package will be used by the textile firm to improve the efficiency of its production, invest in more projects, and upgrade their manufacturing technology.

The state-owned textile group logged a trade surplus of over $1.7 billion in 2013, Le Tien Truong, deputy director of Vinatex, told Tuoi Tre, adding that it also aims to increase export value by 12 percent this year.

“Vietnam will find more opportunities in many places, apart from the U.S. and New Zealand, in the presence of a TPP agreement with favorable terms and conditions,” Truong said.

Vinatex will build a 1,500 hectare textile industrial park by the end of 2014 in cooperation with two Chinese companies, according to the portal of the Ministry of Planning and Investment. 

The $400 million project, which is located in the northern province of Nam Dinh, is expected to be the biggest textile industrial zone in the country, attracting a number of investors in the fields of dyeing, leather, garment, and textiles from mainland China, Hong Kong, and Taiwan.

Doan Hong Phong, vice chairman of the provincial People’s Committee, said the province will hand over cleared land to the investors by the last quarter of this year, adding that Nam Dinh will create a good working environment for them. Once fully operational, the industrial park will create an industrial production value of $3-4 billion each year, contributing $300-400 million of taxes to the state budget, and generating160,000 jobs.


Read more




Experience summer sand-boarding in Mui Ne

Sand-boarding, a popular activity amongst local children in the coastal tourism town of Mui Ne in south-central Vietnam, is attracting hundreds of tourists to the Red Sand Dunes

Young maple trees given better protection as Hanoi enters rainy season

The trees are currently growing well, with green leaves and healthy branches.

Hunting skinks for food in southern Vietnam

Skink meat is known to be soft, tasty, and highly nutritious.

Vietnamese-made app allows people to grow real veggies via smartphone

Nguyen Thi Duyen, a young engineer in Hanoi, developed the app and its related services to help busy people create their own veggie gardens.

Chinese tourists hit by Vietnamese over dine and dash

Four Chinese were reportedly injured, with one having a broken arm.

Latest news

Irish court approves extradition over Vietnamese truck deaths

The UK authorities, citing mobile phone analysis, cell tower data, and CCTV footage, allege that Harrison delivered the trailer in which the people were found to a Belgian port before its onward journey to Britain, a lawyer for the Irish state said last month