The First Yarn Factory In Southwest Vietnam Started Construction, With An Annual Output Of 4500 Tons.

The first yarn factory in Southwest China started construction in thin Liao province.

Map from Yue Tong Society

The total investment of the thin Liao southeast yarn factory is more than 500 billion. It covers an area of 46 thousand square meters, and the construction time is 24 months. It is divided into two phases.

The total investment for the first phase of the project is 275 billion, and the annual output is 3500 tons. It is expected to be put into operation in 2019.

The total investment in the second phase of the project is 238 billion, and the annual output is 4500 tons.

Chen Guangyi, senior manager of Vietnam textile and Garment Group, said the yarn production line was imported from Europe, Japan and India, and the quality of all kinds of yarn products will meet the needs of domestic textile industry and export.

Bo Liao southeast yarn factory is the first yarn factory in Southwest China.

The completion of commissioning of the yarn factory will help promote local economic and social development, with an annual average revenue of 525 billion. It will turn over nearly 6 billion coffers annually to create 500 jobs for local workers.

Yang Chengzhong, chairman of the people's Committee of LIAOLIAO Province, said that the province will create all conveniences for the yarn mill to invest and run according to schedule.

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Vietnam jumped to the third largest textile and garment exporter in the world

In December 26, 2018, "Viet Nam Electronics" reported that Li Jinchang, general manager of Vietnam textile and Garment Group, told reporters at the press conference that Vietnam's textile and apparel exports amounted to 3 billion 600 million US dollars in 2018, up 16% over the same period last year.

The figures show that Vietnam's textile and garment industry has not only increased in quantity but also in quality.

It is worth noting that Vietnam has become the world's third largest exporter of textiles and clothing, second only to China and India.

Li said that the breakthrough factor to promote textile and clothing exports in 2018 is the trend of the world textile and garment production base pferring from China to Vietnam.

At the same time, foreign big enterprises also saw Vietnam's better investment opportunities than India and Bangladesh.

Based on the above results, Li said that the results achieved in 2018 were brought about by the implementation of various strategies over the years, including investment in the construction of international production facilities, the adoption of green technologies and the concern of labourers, thus gaining the priority of customers.

Vietnam's textile and apparel industry still has 10 golden years.

It will become the all around fast reaction base in Southeast Asia.

Recently, Hua Fu fashion announced that it will spend 2 billion 500 million yuan on the construction of a new type of yarn with an annual capacity of 500 thousand spindles in Longan, Vietnam. This is the first phase of the new 1 million item yarn project planned by the company.

Sun Weiting, chairman of Huafu fashion, believes that Vietnam's textile industry will remain golden for the next 10 years.

The Longan province of Vietnam, which is adjacent to Hu Zhiming, is an important gateway connecting the southeast of Vietnam and the Mekong River Plain. Its economic location advantage is very obvious. It not only brings rich water resources for the colored spinning industry, but also facilitates the foreign trade pportation in the international port.

25 billion built "all-around fast reverse factory"

"Chinese enterprises must take two steps to become bigger and stronger: one is to make use of the advantages of China's 1 billion 400 million population, and do industrial upgrading in the process of keeping pace with the upgrading of consumption.

The other is the "going global" market.

Sun Weiting, known for his prudent and prudent investment, said: Vietnam is the "one Luqiao first fort" that Chinese textile and garment enterprises have to layout.

According to the December 17th announcement of Huafu fashion, the company plans to invest in the new yarn project through its subsidiaries, Huafu, Vietnam.

The project is the first phase of the new 1 million item yarn project in the company's planning, with a capacity of 500 thousand yuan, with a total investment of 2 billion 500 million yuan. The source of investment is the company's self financing.

Huafu has been ploughing for four years in Vietnam.

In 2013, Huafu set up a subsidiary in Longan province and became the largest foreign-invested enterprise in Longan. The company also had the first overseas production base.

Up to now, Huafu Vietnam has the leading dyeing and spinning equipment, and has built 280 thousand spindles spinning capacity, dyeing capacity of 20 thousand tons, R & D center of 2000 square meters, supporting production and living facilities of 110 thousand square meters.

Revenue in the first ten months of this year has surpassed that of last year.

It is estimated that sales income will reach US $150 million by the end of December. As of December 15th, Vietnam Industrial Park project will be put into operation.

The new journey opens instantly.

As the world's largest manufacturer and supplier of new yarns, Sun Weiting said that Huafu positioned Vietnam as a "Southeast Asian all-around fast response" base, which is close to international customers and produces standardized products.

Compared with domestic, Vietnam's local order delivery time is shortened by 12 days. Bangladesh, Hongkong and Southern China orders are expected to be shortened by 2-4 days. Competitive advantage can be achieved through quality differentiation, product differentiation and cost differentiation.

At present, the five production bases of Huafu Zhejiang, Changjiang, Huang Huai, Xinjiang and Vietnam have different focuses, and the trend of production capacity pferring to Xinjiang and Vietnam is obvious.

In the future, Zhejiang will be positioned as China's "Italy" and become the "fashion design city". Huafu's "network chain headquarters" established in Shangyu, Zhejiang is a demonstration base for fashion industry. By the end of this year, the 1 million color dyed cotton production in Xinjiang Akesu, China's high-quality long staple cotton production base, will also be put into operation one after another to boost domestic consumption upgrading and export markets in Central Asia and Europe.

As for the source of the investment raised by 2 billion 500 million yuan, Sun Weiting said that it could consider raising funds from Vietnam's own capital and overseas financing, or excluding domestic equity financing.

In view of the financing liabilities of private enterprises which are generally concerned by the market, at present, the shares of listed companies held by Huafu holding company are not pledged, and the debt ratio of listed companies and groups is maintained at 50%-60%'s manufacturing level.

Sun Weiting said earlier that the company's capacity expansion "no ceiling."

Data show that as of the first half of 2018, Huafu fashion production capacity reached 1 million 880 thousand ingots, up 12.57% over the same period last year, and the overall capacity is expected to continue to increase to 2 million.