Garment and textile is the province’s sector with the highest export value. Province-based enterprises, especially FDI ones have paid more attention to manufacturing raw materials for the sector towards sustainable development with better competitiveness.
Investment capital on sharp rise
Garment and textile now takes the lead in export turnover among the province’s export industries. With such potential, province-based enterprises, especially FDI ones have recently attached special importance to the development of auxiliary industry for this sector.
Since early this year, the province has seen a strong rise on the FDI inflow into auxiliary industry for garment and textile. The biggest project in auxiliary industry for garment and textile is the US$12mln textile factory of Phuong Textile Company, a joint venture between Hong Kong’s Haputex Development Limited and Viet Huong Investment Development Joint Stock Company.
Located at Ben Cat town-based Viet Huong 2 Industrial Park, the factory will cover 12 hectares and be put into operation by the end of 2015. The factory will generate jobs for 3,000 laborers and is likely to produce nearly 100 million meters of fabric a year after all its three phases are fulfilled.
Noticeably, KyungBang Vietnam Co.Ltd. under Rok’s KyungBang Group poured the largest additional capital amount into production. In May 2013, the company put its fibre plant into operation with investment capital of US$40mln for the first phase. The company also raised its capital by US$54.2mln for production expansion only after one-year operation.
Potentials and advantages
For only a short time, Binh Duong has absorbed large-scale projects in auxiliary industry for garment and textile from foreign investors. They said that along with a favorable investment climate, the positive impacts of the Trans-Pacific Strategic Economic Partnership Agreement (TPP) negotiations have helped them get more confident in order to invest in this industry in the province.
Marcus IP, General Director of Nam Phuong Textile Joint Venture Co.Ltd. said: “When the TPP is signed, our products will enjoy more advantages with better competitiveness in countries under the TPP”.
It is known that the province has paid more attention to the development of auxiliary industries. Le Thanh Cung, Chairman of provincial People’s Committee said that the province has always welcomed enterprises investing in auxiliary industry for garment and textile, contributing to improving the quality and efficiency of the local garment and textile sector.
So far, the province has also zoned and built a specialized area for enterprises investing in auxiliary industries at Bau Bang Industrial and Urban Park. This will help enterprises with a lot of advantages enjoy opportunities and uphold their business efficiency when Vietnam officially joins the TPP.
In the first nine months of 2014, Binh Duong’s garment and textile sector secured at nearly US$1.4bln in export turnover, up 20.6% compared to the corresponding period last year. The figure accounted for 12.6% of the province’s total export turnover and over 9% of total export turnover of the country’s garment and textile sector.
Reported by Trong Minh-Translated by K.T
