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    Lack Of Capital, Vietnamese Clothing And Textile Companies Inhibit Large Investment Projects

    2011/12/2 15:25:00 26

    Capital Vietnam Garment And Textile Investment

    Vietnam?

    clothing

    and

    Spin

    Due to the lack of capital in 2012, the company will restrain large investment projects.


    Le Tien Truong, vice chairman of Vinatex, said: "due to the lack of large scale

    Investment

    In the past year, the project has been under great economic pressure. So far, clothing and textile industry has not yet found the source of investment capital in 2012, especially raw materials development projects.


    He said Vietnam's clothing and textile enterprises have been aiming at the main target, continuing to raise capital for manufacturing and importing raw materials to serve domestic products.

    Manufacture

    And export.


    Not only small and medium-sized enterprises, but also some powerful large enterprises, such as Viet Thang and Phong Phu, are also cautious about new projects.


    In 2011, in order to meet the demand of export market, Vicotex invested only 60 billion Dong Dong (equivalent to 2 million 800 thousand US dollars) to purchase equipment and machinery to expand the quantity of products and improve the quality of products.


    Vicotex chairman Nguyen Duc Khiem said: "due to shortage of funds and high interest rates, companies are not interested in large-scale investment projects."


    Bui The Kich, chairman of Donagamex, said, "in 2011, the company set up and run Dong Viet Phu, a new company that specializes in production.

    Non-woven fabrics

    Products, clothing and textiles.

    The total investment of the new company is not large enough to serve the domestic market. "


    Nguyen Van Thoi, chairman of Thai Nguyen investment and trade, said: "in the first stage, Thai Nguyen invested 200 billion Vietnamese Dong (US $961 million) to build Phu Binh clothing and textile factories, but the total capital of the company only gained 80% profits.

    Therefore, although the company started operation in June 2011, until now, the project has not yet completed construction.


    In order to cope with project capital shortage, the company leases financing and restructured company debt by pferring short-term capital investment equipment.


    Faced with a shortage of funds, clothing and textile enterprises hope that the government will provide funds to support them in realizing investment projects.


     
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