Industries of electronics and support for garment & textile on acceleration

For a short time only, the province’s industries of electronics and support for garment & textile has reached a rapid growth.

Electronic industry on rapid growth

The province’s electronic industry has recently obtained a robust growth. Mainly, it has been developed by FDI enterprises at province-based industrial parks (Ips). There are now 154 enterprises getting involved in manufacturing electronic products at 26 operational Ips in the province, generating jobs for nearly 49,000 laborers.

Provincial leaders visiting the Japan-invested Matsumura Electronics Industry Vietnam Co.Ltd. at My Phuoc 3 IP

Vietnam-Singapore Ips (VSIPs) have so far absorbed 124 enterprises in the field of electronics with nearly 44,600 laborers. The Japan-invested Wonderful Saigon Electrics Co.Ltd. in VSIP 1 is seen as an electronic company with the most biggest capital amount. So far, the company’s investment capital has been raised to US$240mln for manufacturing camera modules, high-capacity integrated circuits and printed circuit boards for use in next-generation network devices.

Meanwhile, the Japan-invested Foster Vietnam Electronics Co.Ltd., specialized in manufacturing headphone products and related components at VSIPs 1 and 2, is an electronic company with the most laborers in the province. It now has a total of nearly 11,840 laborers.

Thanks to the involvement of many FDI enterprises in electronic industry, the province’s export turnover in this field reached a high growth in the first seven months of 2014. Particularly, export turnover of computers and other electronic products obtained nearly US$399.5mln. Telephones and their components achieved US$657mln in export turnover.

Auxiliary industry for garment and textile on sharp rise

Binh Duong is one of Vietnam’s top localities in garment and textile exports. In 2002, the Thien Nam Spinning Joint Stock Company (JSC) inaugurated its first spinning factory at Thuan An town-based Dong An IP. Following the success of the factory, the  JSC opened another factories at Di An town-based Binh An Garment & Textile IP. So far, the JSC has developed four factories in Binh Duong with a total of 150,000 spindles, turning out 25,000 tons of cotton yarn per year. They have contributed to raising the competitiveness of Vietnam’s yarn and the sector’s localization rate.

On June 2013, Kyung Bang Vietnam Co. Ltd., wholly invested by the Republic of Korea’s Kyung Bang Group, put its large-scale fibre factory into operation at Bau Bang IP. It is equipped with 25,920 spindles and machinery by Swiss and German companies.

In the first phase, the project has investment capital of US$40 mln. It covers an area of 160,000sq.m and has a capacity of 6,000 tons of fibre per year. In 2014, the company has also injected an additional US$54.2mln to raise its capacity.

According to leader of Kyung Bang Vietnam Co. Ltd., Vietnam is a country with strong export in garment and textile, so auxiliary industry for this sector is very potential. The company decided to sort out Binh Duong for building a fibre factory to supply high-quality cotton fibre to garment and textile firms in Vietnam, contributing to reducing the country’s trade gap for this sector.

Han Vay Chi, CEO of Viet Huong Joint Stock Company said that great corporations have been interested in the auxiliary industry for garment and textile. Currently, a firm is expected to spend US$120mln on this industry at Viet Huong 2 IP.

Also according to him, there is a strong investment into auxiliary industries, especially in garment and textile. This is because enterprises would like to catch investment opportunities from the Trans-Pacific Strategic Economic Partnership Agreement that is under negotiation. The factor will also have a strong impact on other fields.

Reported by T.Minh-Translated by K.T