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    Vietnamese Textile And Garment Enterprises Lack Funds And Ride Hard To Get Rid Of Them

    2011/12/5 13:09:00 15

    Money For Textile And Clothing Is Hard To Come By

    Vietnam clothing and textile companies will block large investment projects due to lack of capital in 2012.


    LeTienTruong, vice chairman of Vinatex, said: "due to the lack of large investment projects, the pressure of the past year has been enormous, so far, the 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 commodity manufacturing and export.


    Not only small and medium-sized enterprises, but also some powerful large enterprises, such as VietThang and PhongPhu, are 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.


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


    BuiTheKich, chairman of Donagamex, said: "in 2011, the company established and ran DongVietPhu, a new company specializing in the production of non-woven fabrics, clothing and textiles.

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


    "In the first stage, ThaiNguyen invested 200 billion Dong Dong (US $961 million) to build PhuBinh clothing and textile factories, but the total capital of the company only gained 80% of the profits," said NguyenVanThoi, chairman of ThaiNguyen investment and trade.

    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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